NEW DELHI : Buyer of a new vehicle may have to pay cost of vehicle and insurance premium through separate cheques, if the recommendations of a committee
The committee constituted by the Insurance Regulatory and Development Authority of India (IRDAI) has recommended direct payment of insurance premium to the insurance company while purchasing a vehicle, thereby suggesting separate payments for .
Automotive dealers may act as sub-brokers, distribution channels for motor insurance: IRDAI Committee
The Committee for Review in its submission noted the motor insurance business sourced by MISPs through brokers and insurers put together constitutes around 25% of the total motor insurance business or around 11.25% of the overall general insurance business.
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The Committee for Review (CfR) of Motor Insurance Service Provider (MISP) guidelines on January 18 submitted its report to the Insurance Regulatory and Development Authority of India (IRDAI).
In it, the CfR suggested that all automotive dealers may act as one of the distribution channels on a stand-alone basis. This would in turn solicit motor insurance business in a manner similar to insurance brokers.