4-Layer Motor Insurance: What You Pay From Dec 15

IRDAI is making motor insurance clearer by splitting it into 4 separate parts from December 15. This means you'll know exactly what you're buying — and won't accidentally skip critical cover when renewing your policy.

Here's what happened: IRDAI has mandated a four-layer motor insurance structure effective December 15, separating third-party, own-damage, personal accident, and add-on covers into distinct visible components.. The move is designed to eliminate confusion at the point of sale, where bundled policies often caused buyers to unknowingly skip or overpay for certain coverages.. Vehicle owners will now be able to see the cost and scope of each insurance layer clearly before purchasing or renewing, enabling genuinely informed decisions..

What you should do: Check your current motor policy before December 15 to understand which of the four layers you already have — log into your insurer's app or pull out your policy document today.. Compare own-damage and add-on pricing across at least two insurers when you next renew, since the new structure makes side-by-side comparison far easier than before.. If your vehicle is older than 5 years, review whether full own-damage cover is still cost-effective or whether a leaner add-on selection saves you money under the new structure..

Zero-depreciation add-on costs roughly ₹1,500–₹3,000 extra per year but can save you ₹30,000+ on a single bumper or bonnet repair claim — most people drop it accidentally during fast online renewals.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.