Irda setting up database of insured vehicles

The Insurance Regulatory and Development Authority (Irda) is in the process of setting up database of all vehicles, which are insured.

In this context, Irda has released a draft on design and development of Vehicle Insurance Status SMS System (VISSS) seeking comments and suggestions from the insurers.

According to Irda, the objectives of the proposed system are instant and easy availability of insurance status of the vehicle, providing the authorities with additional proof of non-insurance for taking action against uninsured vehicles, discouraging use of forged policy documents, bringing more vehicles into the insurance net and real time availability of motor insurance figures with the regulator.

The web-based data collection system involves collection of data from insurance companies and replying to a query sent by any stakeholder by the short message service (SMS). Available technology will be utilised to expedite collection of data, Irda stated in its circular on Friday.

Around 50 million motor vehicle policies are issued in the country every year by 17 general insurance companies, which together have 5,000 operating offices. After the issuance of the policy, it is currently taking, on an average, one year for Irda to receive the insurance data.