If there is one thing less that is going to clutter the glove compartment of your car, it’s your car insurance policy. The Insurance Regulatory and Development Authority of India (Irdai) launched its digital motor insurance policy for all vehicles called e-Vahan Bima. Through this you don’t have to carry physical documents of your car insurance policy, you can just store the policy in your mobile and show it to the police when asked for policy papers. Telangana has become the first state to accept the digital policy format from 2 January. Irdai hopes that e-Vahan will be implemented across all states by 2017.
Under the Motor Vehicles Act, 1988, a third-party motor insurance is mandatory for all plying vehicles. Third-party insurance covers damage to life or property of a third-party by an insured vehicle. Other than third-party, a comprehensive motor policy also comprises own damage cover that insures vehicles against theft or damage. Though insurance is a statutory requirement, level of insurance is low.