Third party (TP) motor insurance refusal rates have seen a big drop with the regulator cracking the whip on insurers refusing to provide covers. Not only have insurers been barred from refusing to cover a third party motor risk, they have also been asked to sell motor TP products online.
All general insurance companies are now selling motor TP policies through their website. Senior insurance executives said that the regulator has insisted on them selling products via their portals so that it is easier and quicker to purchase.
The Declined Risk Pool for Commercial Vehicles that was in operation from April 1, 2012 will also now be dismantled from April 1, 2016. Insurance Regulatory and Development Authority of India (IRDAI) said that since the Insurance Act has already called for insurers to complete a certain minimum motor third party business in a financial year.
