The private non-life insurance players will have to change their business model and underwrite commercial vehicle business, or face the wrath of the insurance regulator for breach of mandate.
So far new players were unwilling to underwrite motor business of commercial vehicles, as they saw this to be a loss-making proposition.
Insurance Regulatory and Development Authority (Irda) chairman N Rangachary met the heads of the non-life insurance companies in Hyderabad today and reprimanded them for refusing to accept third-party motor insurance for commercial vehicles. Third-party motor insurance being a legal requirement, no insurance company can refuse to issue this cover, said the Irda chief.
The transporters
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