Irdai partnering states to contact those with uninsured vehicles

The Insurance Regulatory and Development Authority of India (Irdai) is working with four state governments on ways to contact owners of uninsured vehicles, so that they renew their policies on time, said Subash Chandra Khuntia, chairman, Irdai. 

Under the Motor Vehicles Act, it is mandatory for all vehicles to have a third-party insurance cover.

The chairman said if the insurance companies, especially the general insurers, made an effort to reach out to policyholders for renewals and made them aware of renewing their policies, it would lead to more premium collection.

Acknowledging a dip in growth in the motor insurance segment, which contributes more than two-thirds of premiums for general insurers, the chairman said: "This segment is experiencing a bit of difficulty because of the slowdown in the sale of new vehicles.”

While the motor insurance segment is showing muted growth, the health insurance segment has shown reasonable growth, with standalone insurers growing 37 per cent in FY19.

On the overall insurance sector, he said, "Though growth numbers have been fairly good, we should strive hard to increase it further. We should not think of growth rates less than 15 per cent.” 

He added the life insurance industry had grown 11 per cent in FY19 and the general insurance industry 11 per cent. 

“Despite some downturn in the economy, we shouldn't think of less than 15 per cent  growth in the future as insurance is countercyclical; more the stress, more the need for protection,” said Khuntia.