INSURANCE
IRDAI to launch pilot project with four states to cover uninsured vehicles
Aug-23-2019

Amid slowdown in the insurance industry, the Insurance Regulatory and Development Authority (IRDAI) is launching a pilot project with the four states to reach out to the owners of uninsured vehicles for renewal. IRDAI chairman S C Khuntia said this project will help insurance companies to improve their premium collections.

He said ‘We are working with four state governments on a pilot project on how to contact the owners of the motor vehicles that are not insured and send communication to them that they come and renew’. Though, he did not mention the names of the four states.

It is mandatory under the Motor Vehicle Act to have third party insurance. Traditionally, motor vehicles have been a segment which used to give about one-third of the premium but this year there is a little bit of difficulty as there has been concerned about the sale of automobiles.

The general public must be made aware about the benefits of pure term insurance. He added that ‘People mix term insurance product with savings product and compare with products like mutual funds or fixed deposits in the banks. We need to create awareness of the nature of this product.’

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