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  • Insurance IRDAI instructs general insurers to sell motor third party insurance directly

    IRDAI instructs general insurers to sell motor third party insurance directly

    Insurers cannot deny motor third party insurance.
    Team Cafemutual Jan 4, 2018

    IRDAI has directed general insurance companies to sell motor third-party cover online along with other regular channels. In other words, the non-life insurers will have to sell motor third party cover directly to the policyholders.

    This is in the wake of Supreme Court’s order in which the apex court has asked insurance regulator to ensure availability of such a cover to policyholders. The court found, “Insurers have a cumbersome process that involves inspection of the vehicle and that vehicle owners have complained that it is not an easy process to obtain insurance.”

    In addition, IRDAI has directed the insurance companies not to deny their customers motor third party insurance cover.

    To ensure easy availability of motor insurance, IRDAI has asked insurers to liaise with police authorities to facilitate issue/renewal of third party liability policy to owners of the vehicles who are not having third party cover. The Supreme Court Committee on road safety has asked the state and union territories to periodically carry out checks to see if the vehicle owners have third party insurance cover. They further stated that in case the vehicles are not covered by motor third party, they should be detained till the valid third party insurance certificate is produced by the vehicle owners.

    Third party motor insurance is mandatory in India. However, General Insurance Council data shows that over 60% of vehicles plying on Indian roads are not insured.

    Have a query or a doubt?
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    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

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