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Soon, you could buy vehicle insurance through ATMs!

Jan 07, 2016

The Insurance Regulatory and Development Authority of India (IRDAI) plans to permit insurance companies tie up with banks in this regard, its Executive Director Sriram Taranikanti told BusinessLine.

To begin with, the mandatory motor third-party insurance will be made available through ATMs.

“There are seven crore vehicles plying without insurance, creating a huge social and economic hazard for victims of road accidents, and this needs to be curtailed,” the official said. This also dilutes the safety net and has adverse impact on the compensation available for the common man in case of any grievous injury arising out of use of uninsured vehicles.

The total number of registered vehicles in the country are 15 crore, according to the latest data.

While insurance is automatically bought at the time of vehicle buying, owners fail to renew it after the first year.

The regulator is of the view that easy access to purchase of insurance might ensure better compliance.

As the premium rates for third-party insurance are generally fixed and uniform, there is no question of much competition. The lowest premium for third-party insurance is about Rs.500. On this basis, if all vehicles are insured, it will generate a premium income of Rs.3,500 crore. If one adds up the higher premium for some classes of vehicles, the combined premium income generation could be around Rs.5,000 crore. “Indirectly, this will also trigger demand for own damage component of insurance which might benefit the industry,” Taranikanti said. The total size of vehicle insurance segment in the country is about Rs.15,000 crore.

As most of the banks are already distributing insurance products, making them available is not a big issue for banks and insurers, he felt. The Know Your Customer (KYC) norms are not mandatory while taking a motor insurance policy.

The IRDAI is also actively considering sale of insurance at mobile pollution check centres as part of exploring ways to address the online connectivity issue, which is a must for issuing policies.

Source: The Hindu Business Line



IRDA announces portal for health insurance plans info

Jan 06, 2016

With a view to bring all relevant information regarding health insurance policies at one place, IRDA chairman T S Vijayan has announced a portal ‘Registry of Hospitals in Network of Insurers’ (Rohini). The portal will be having all the information like treatment facility, cost of treatment and cost of claims among others relating to the 35,000 hospitals which are registered by Irdai-promoted Insurance Information Bureau (IIB).

“It’s a unique initiative of Irdai which going forward will help insurance companies and hospitals and all the insured under various health insurance schemes to get all relevant data at one place,” Insurance Regulatory and Development Authority of India (Irdai) member Nilesh Sathe told PTI. Every hospital across the country connected with insurance companies for cashless payment on registration has been given a unique identification number under the initiative by Irdai so as to make IIB able to monitor the patterns of health insurance claims from all those hospitals.

In fact, the registry of hospitals under Rohini is the final step in monitoring health insurance claims from various hospitals under the network to study the pattern of claims, cost of claims and cost of treatment. “This is a good initiative for creating a unique identity for health providers in the country so as to understand each provider’s unique need separately,” ICICI Lombard chief-underwriting, claims and reinsurance Sanjay Datta said.

“It will help insurers understand various aspects of healthcare and various types of healthcare and treatment facility being provided by the 3,000 hospitals that fall under ICICI Lombard’s network,” he added.

Source: Financial Express



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