Every year, the Insurance Regulatory and Development Authority of India (IRDAI) introduces new guidelines to make motor insurance more customer-friendly. In 2025, IRDAI has brought in significant reforms that directly impact premiums, claims, and policy portability.
Whether you own a scooter, car, or electric vehicle, these updates will affect how you buy and renew motor insurance.
Key IRDAI Updates for 2025
1. Standardized Add-Ons
IRDAI has made add-ons like Zero Depreciation, Roadside Assistance, and Engine Protection uniform across insurers.
This makes it easier to compare policies.
2. Digital-First Policies
- Insurers must now issue 100% paperless policies.
- QR codes are mandatory for e-verification.
3. Premium Capping for Third-Party Insurance
To protect customers, IRDAI has capped third-party premium hikes at no more than 10% per year.
4. Faster Claim Settlements
- Insurers must process cashless claims within 7 working days.
- Penalties for delays beyond this period.
5. Portability Made Easier
Policyholders can now port motor insurance between insurers without losing No Claim Bonus (NCB).
6. EV-Specific Guidelines
- Discounts on third-party premiums for electric vehicles continue in 2025.
- Mandatory battery protection coverage introduced.
Why These Rules Matter
- Transparency – Standard add-ons prevent mis-selling.
- Digital Convenience – Faster policy issuance, easy verification.
- Affordability – Premium capping protects customers from sharp hikes.
- Customer Rights – Faster claims and portability empower vehicle owners.
Case Study: Anita’s Claim Settlement
Anita, a Pune-based car owner, faced a ₹90,000 repair bill after an accident. Thanks to the new IRDAI rules, her insurer settled the cashless claim in just 6 days, well within the deadline.
Lesson: The reforms are already improving customer experience.
Quick Infobox: IRDAI Motor Insurance 2025 at a Glance
| Rule | What Changed | Why It Matters |
|---|---|---|
| Add-Ons | Standardized across insurers | Easier comparison |
| Digital | 100% paperless policies | Convenience & speed |
| Third-Party Premiums | Capped at 10% annual hike | Protects affordability |
| Claims | Cashless claims in 7 days | Faster settlements |
| Portability | NCB transferable across insurers | More flexibility |
| EV Rules | Mandatory battery cover | Safer EV adoption |
Why This Matters
With more vehicles on Indian roads every year, IRDAI’s reforms are focused on transparency, digital adoption, and customer convenience. For policyholders, 2025 is one of the most consumer-friendly years yet.
Next, read: Car Insurance for Second-Hand Vehicles: What to Know
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