Insurance regulator establishes a four-layer motor policy structure via circular IRDAI/CIR/MOT/10/2026

Circular IRDAI/CIR/MOT/10/2026 introduces a four-layer motor insurance structure specifically for private vehicles. The regulatory directive reorganises how policy tiers, coverage extensions, and liability calculations are structured for private automobile insurance. Insurers must restructure their underwriting products to match this segmented classification.

Regulatory frameworks for motor insurance protect vehicle owners by ensuring clear coverage terms and standardized premium computations. Under the previous guidelines, policy structures lacked uniform categorisation across various underwriting portfolios. The new four-layer model addresses this by establishing clear boundaries for different coverage levels.

Insurance companies must update their policy issuance software and train underwriting teams on the new classification. Actuaries need to re-evaluate pricing models for each of the four designated layers before the compliance deadline. Bottom line: ensure policy documentation complies fully with the circular to avoid regulatory penalties.