Now, if you buy any vehicle, then auto insurance has to be taken along with it. Right now the premium for this insurance is paid to the vehicle dealer along with the price of the vehicle in one go. Now the insurance regulator IRDAI is thinking about a slight reshuffle in it. Know what is going to change…
The Insurance Regulatory and Development Authority of India (IRDAI) formed a committee to review the collection and other modalities of motor vehicle insurance. The committee has submitted its recommendations to IRDAI. There are many such suggestions in it that will change the way you buy your auto insurance.
Guidelines came in 2017
IRDAI released Motor Insurance Service Provider (MISP) Guidelines in 2017 to make the process of vehicle insurance easier. In this, insurance companies appoint an MISP to a vehicle dealer who provides an insurance policy to customers at the time of purchasing a vehicle. Many times insurance companies appoint their agents at vehicle showrooms for this work. In June 2019, a review committee was formed by IRDAI to review the same system of selling vehicle insurance, which has made several suggestions to improve the system of selling vehicle insurance through MISP.
Premium, Different payment of vehicle In
the present system, when a customer buys a vehicle, he pays the price of the vehicle in one go. The committee recommends that these two payments be charged separately, as there is a lack of transparency in the current system regarding insurance premium collection. Right now the insurance premium is charged from the customer along with the cost of the vehicle and MISP pays the insurance company the premium from their account.
Clients did not have the option
committee found that in the current system, often the customer is not even aware of the cover or discount he gets with his insurance. Nor does the customer have the option to choose better auto insurance with MISP at the same price. In such a situation, the committee recommends that the price of the vehicle and the insurance premium be paid separately and the customer pay it directly to the insurance company.
The information about the insurance has to be given by the
committee that the vehicle dealership companies (OEMs) have a significant impact on the vehicle dealership. In such a situation, OEMs should also be brought under the regulatory ambit. Therefore OEMs should also be included in MISP. Also, MISP must give the customer complete information about the cover and benefits of his insurance.