Lok Sabha Question No. 3652 (UNSTARRED), answered on 2025-08-11
Subject: Compulsory Personal Accident Insurance for Owner-Drivers
Ministry: FINANCE
Asked by: Shri Rajkumar Chahar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION No. 3652

ANSWERED ON MONDAY, 11 AUGUST, 2025/SRAVANA 20, 1947 (SAKA)

## COMPULSORY PERSONAL ACCIDENT INSURANCE FOR OWNER-DRIVERS

3652.  SHRI RAJKUMAR CHAHAR:

Will the Minister of FINANCE be pleased to state:

- (a) the concept and objective of compulsory personal accident insurance for owner-drivers;
- (b) whether it is mandatory under IRDAI regulations and relevant legal provisions;
- (c) if so, the data for the last five years on such policies issued along with total registered motor vehicles, year-wise;
- (d) the minimum sum insured and date of last revision; and
- (e) whether insurers comply and offer it as bundled or standalone cover and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) The Compulsory Personal Accident (CPA) for owner-drivers provides financial protection to vehicle owners-drivers in the event of death or permanent disability due to accident whilst driving  the  vehicle  (including  mounting  into/  dismounting  from)  or  traveling  in  the  insured vehicle as a co-driver.  The owner of the insured vehicle who holds a driving license is termed as  owner-driver  for  this  purpose.    The  CPA  cover  is  available  with  General  insurance companies for motor vehicles including private cars, two wheelers and commercial vehicles.
- (b)  to  (e):  The  erstwhile  Tariff  Advisory  Committee  (TAC)  formed  under  Part  IIB  of  the Insurance Act, 1938, laid down Indian Motor Tariff (IMT) 2002 which contained rules, terms and conditions etc. for transaction of motor insurance in India.   The General Regulations 36 of the IMT 2002 mandated for CPA cover for owner-drivers of motor vehicles providing the sum insured as Rs 1 lakh for Motorized Two Wheelers and Rs 2 lakh for Private Cars and Commercial vehicles.

Later, in accordance with the judgment dated 26 th  October 2017 of the Hon'ble Madras High Court,  the  Insurance  Regulatory  and  Development  Authority  of  India  (IRDAI)  has  issued various circulars on CPA insurance, most recent on 11 th  December 2018, stipulating that all General Insurers carrying on motor insurance business shall provide standalone CPA cover for  owner-driver for a minimum sum insured of Rs 15 lakhs for policy period of one-year. Coverage under the stand-alone CPA will extend to all the vehicles owned by the ownerdriver under the same policy.

However, the insured is permitted to opt out on the basis of certain exceptions such as where they  have  already  covered  themselves  sufficiently  (Rs.15  Lakh  or  above)  in  other  life  or personal accident insurance policies and/ or having multiple vehicles and already covered under insurance of those vehicles, where a vehicle is owned by a company, a partnership firm or a similar body corporate etc.

W.e.f. 01 st  January 2019, IRDAI has permitted the insurance companies to issue stand-alone CPA cover for owner-driver.  However, if a policyholder chooses to opt for the CPA cover as part of the Liability only policy or the Package policy, he/she can continue to do so.

The data for the last five years on such policies issued and total registered motor vehicles for last five years is enclosed at Annexure.

*******

## Number of CPA policies issued in the last 5 FYs

| Financial Year   | No. of Owner-Driver PA Policies   |
|------------------|-----------------------------------|
| 2019-20          | 7,74,98,362                       |
| 2020-21          | 6,79,17,152                       |
| 2021-22          | 6,80,31,126                       |
| 2022-23          | 6,58,64,828                       |
| 2023-24          | 7,20,58,557                       |

Source:  Insurance Information Bureau

Total count of vehicle registered for the last 5 years

| Calendar Year        | Vehicles registered per year   |
|----------------------|--------------------------------|
| 2020                 | 1,863,3419                     |
| 2021                 | 1,891,0622                     |
| 2022                 | 2,157,7909                     |
| 2023                 | 2,400,8418                     |
| 2024                 | 2,620,9814                     |
| 2025 (till 5.8.2025) | 1,517,1261                     |

Source: Ministry of Road Transport & Highways