📷 Image: Wikimedia Commons / Subhashish Panigrahi
Business
Supreme Court Calls for Clear Cross‑Border Motor Insurance Rules, Urges IRDAI to Standardise
✍️ BFSI News
🗓 22 Jul 2026, 08:18 AM
👁 3
The Supreme Court highlighted ambiguities in cross‑border motor insurance policies and directed the Insurance Regulatory and Development Authority of India (IRDAI) to formulate uniform guidelines.
The Supreme Court of India, in a recent judgment, pointed out significant ambiguities surrounding cross‑border motor insurance coverage for Indian vehicle owners traveling abroad.
The Court noted that existing policies often lack clarity on the extent of coverage, claim procedures, and the responsibilities of insurers when a vehicle is involved in an accident outside India. This uncertainty can leave policyholders exposed to unexpected costs and legal complications.
In response, the Court urged the Insurance Regulatory and Development Authority of India (IRDAI) to develop and enforce standard norms that clearly define coverage limits, claim timelines, and dispute resolution mechanisms for cross‑border motor insurance.
The Court’s directive is expected to prompt IRDAI to draft comprehensive guidelines, ensuring that both insurers and consumers have a transparent framework for overseas vehicle protection.
The Court noted that existing policies often lack clarity on the extent of coverage, claim procedures, and the responsibilities of insurers when a vehicle is involved in an accident outside India. This uncertainty can leave policyholders exposed to unexpected costs and legal complications.
In response, the Court urged the Insurance Regulatory and Development Authority of India (IRDAI) to develop and enforce standard norms that clearly define coverage limits, claim timelines, and dispute resolution mechanisms for cross‑border motor insurance.
The Court’s directive is expected to prompt IRDAI to draft comprehensive guidelines, ensuring that both insurers and consumers have a transparent framework for overseas vehicle protection.