Madras High Court has directed the Insurance Regulatory Development Authority to enhance compulsory personal accident cover from Rs 1 lakh to not less than Rs 15 lakh.
Justices R. Subbiah and A.D. Jagadish Chandira, who were dealing with an appeal filed by an insurance company, referred to an IRDA note to say that the policy to compensate vehicle owners in case of personal accidents was introduced 15 years ago.
In 2002, Rs 1 lakh might have been enough to meet medical expenses to a certain extent but treatment costs had skyrocketed in the 15 years that have passed since, the judges said. The bench directed the regulator to consult all stakeholders before enhancing the premium amount vehicle owners have to pay.
