The Supreme Court on July 20 directed the Insurance Regulatory and Development Authority of India (IRDAI) to issue comprehensive guidelines on the applicability of Motor Third Party insurance clauses for vehicles traveling across India's land borders with Nepal, Bangladesh, and Bhutan.
The direction came during the hearing of a case involving a cross-border motor accident claim where the applicability of Indian TP insurance was disputed. The Court noted that thousands of commercial and private vehicles cross India's land borders daily, and the lack of clarity on TP insurance coverage creates unnecessary litigation.
IRDAI has been given three months to submit draft guidelines addressing: territorial jurisdiction for claims arising from cross-border accidents; reciprocal recognition of insurance coverage; and dispute resolution mechanisms for cross-border claims.
Source: Economic Times (July 20, 2026)