Printed 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 greater seller fee.
The Insurance coverage Regulatory and Growth 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 greater seller fee.
This transfer will permit customers to have a wider collection of insurance coverage firms to select from and examine premiums. Whereas it can create a contest among the many insurers to supply aggressive premiums, it can give freedom to the buyer whose alternative was earlier restricted to the corporate which had unique tie-up with the seller.
The IRDAI round launched on August 31, 2017, recognised the essential position performed by auto seller community in distributing and renewing car insurance coverage insurance policies. The announcement additionally allowed for insurance coverage firms to pay greater fee to the seller for his or her providers.
Car 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 nicely.