Mumbai : Non-life insurers are in a fix over the SC directive asking
them to issue long-term policies for every new vehicle sold from
September 1. None of them have a long-term policy for cars in place
and they are all falling back on their association -- the General
Insurance Council -- for relief from the SC order. Additionally,
insurers are worried that regulator IRDAI might play safe and direct
companies to issue policies without product approval. General
Insurance Council secretary general R Chandrasekaran said, " We are trying to get a hearing from the court. Our appeal is to grant more time as insurers have been busy on account of floods in Kerala and Karnataka. Also, our point is that authorities like police are better placed to check on uninsured vehicles." Insurers are reluctant to. offer long-term policies as it will make the covers very expensive and will deter buyers. Last month, the SC ordered that no new vehicle could be sold without a three-year cover for four-wheelers and a five-year cover for two-wheelers. The order followed recommendations of a SC appointed committee on road safety. The objective was to
reduce the number of uninsured vehicles on Indian roads.
( The Times of India, Chennai, Wednesday, August 29, 2018 )
Courtesy : MPS
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