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Customers get freedom to decide on auto insurance coverage firm | Autocar India

Written by Mohite Singh

Revealed On Sep 13, 2017 12:07:00 PM

IRDA permits all insurance coverage firms to promote car insurance coverage at dealerships with out tying up; insurance coverage firms free to resolve increased supplier fee.

The Insurance coverage Regulatory and Improvement Authority India (IRDAI) has allowed all common insurance coverage firms to promote their car insurance coverage coverage to customers throughout all auto dealership networks with out tying up. They insurance coverage firms have been given freedom to set differential pricing in addition to resolve increased supplier fee.

This transfer will enable customers to have a wider collection of insurance coverage firms to select from and examine premiums. Whereas it’s going to create a contest among the many insurers to supply aggressive premiums, it’s going to give freedom to the buyer whose alternative was earlier restricted to the corporate which had unique tie-up with the supplier.

The IRDAI round launched on August 31, 2017, recognised the vital function performed by auto supplier community in distributing and renewing car insurance coverage insurance policies. The announcement additionally allowed for insurance coverage firms to pay increased fee to the supplier for his or her companies.

Automobile sellers adhering to the rules can look to extend income by promoting insurance policies to their clients in addition to customers who’ve purchased car from different sellers as effectively. 

 

About the author

Mohite Singh