IRDA to launch vehicle insurance tracking system
The Insurance Regulatory and Development Authority (IRDA) will roll out a web-based system to track vehicle insurance status in a month's time.“We will be launching the system formally from June 9.It will have a database of all the insured vehicles from across the country. The data will also be shared with the transport and police authorities in different States,” Mr A. Giridhar, Executive Director, IRDA, told Business Line here.This implies that the Road Transport Authority (RTA) in every State will have access to the insurance status of different vehicles on the road.In turn, they can launch a drive to track down challan defaulters. The benefit for insurance companies is that the centralised data will help them avoid duplications or multiple claims.BenefitsThe system will make a big difference for the vehicle owners as well as general insurers, he said.As all vehicles will now have to be insured, the premium per policy is likely to come down.The third-party insurance procedure will now be efficient, especially for victims of hit-and-run cases.The system may help reduce insurers' losses as these claims will be settled from a ‘Solatium Fund' now.At present, the insurers pay for losses caused by the uninsured vehicles.“More importantly, several insurers are also complaining of multiple claims in damage and theft cases. This can be brought down,” Mr Giridhar, said.As the system will also have a database of insurance claims made/honoured, cases of bad or negligent driving can be ascertained by the insurers before deciding on the premium to be charged, he added.VerificationAs the data are to be shared with the transport authorities and the police, the new system will also help them verify the insurance status of any vehicle. At present, examining the hard copy of the insurance certificate is the only option available to them. The Web-based system will integrate up-to-date information gathered from general insurance companies.This information will be made available to all stakeholders instantly. The submission of data by each underwriting office will be monitored on a daily basis and a report on the same will be generated, officials said.
The Insurance Regulatory and Development Authority (IRDA) will roll out a web-based system to track vehicle insurance status in a month's time.“We will be launching the system formally from June 9.It will have a database of all the insured vehicles from across the country. The data will also be shared with the transport and police authorities in different States,” Mr A. Giridhar, Executive Director, IRDA, told Business Line here.This implies that the Road Transport Authority (RTA) in every State will have access to the insurance status of different vehicles on the road.In turn, they can launch a drive to track down challan defaulters. The benefit for insurance companies is that the centralised data will help them avoid duplications or multiple claims.BenefitsThe system will make a big difference for the vehicle owners as well as general insurers, he said.As all vehicles will now have to be insured, the premium per policy is likely to come down.The third-party insurance procedure will now be efficient, especially for victims of hit-and-run cases.The system may help reduce insurers' losses as these claims will be settled from a ‘Solatium Fund' now.At present, the insurers pay for losses caused by the uninsured vehicles.“More importantly, several insurers are also complaining of multiple claims in damage and theft cases. This can be brought down,” Mr Giridhar, said.As the system will also have a database of insurance claims made/honoured, cases of bad or negligent driving can be ascertained by the insurers before deciding on the premium to be charged, he added.VerificationAs the data are to be shared with the transport authorities and the police, the new system will also help them verify the insurance status of any vehicle. At present, examining the hard copy of the insurance certificate is the only option available to them. The Web-based system will integrate up-to-date information gathered from general insurance companies.This information will be made available to all stakeholders instantly. The submission of data by each underwriting office will be monitored on a daily basis and a report on the same will be generated, officials said.
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