This story is from November 26, 2019
IRDAI moots telematics for motor insurance
Hyderabad: Insurance regulator
As per the new recommendations, the depreciation and sum insured calculation has been made simple and the vehicle age-based depreciation has been recommended for partial losses to make it completely objective and remove all ambiguity and subjectivity in claim settlement. For brand new private cars, a new option has been recommended, where return to invoice is a part of basic cover. It is recommended that for private cars of up to three years, the sum insured shall represent the current day on-road price of the vehicle insured, including invoice value, road tax and registration charges and value of all accessories fitted thereon by the manufacturer. The value of accessories fitted by the insured shall be separately mentioned. For vehicles beyond three years, the sum insured shall be as per the suggested new depreciation table and beyond seventh year, sum insured shall be arrived at by a mutually agreed value between the insured and the insurer.
Meanwhile, in addition to the existing provision, it is recommended that in all cases of total loss / CTL (constructive total loss) as well as theft claims, the registration certificate (RC) of the vehicle shall be cancelled and claim shall be settled only after the insured surrenders such cancelled RC. The policy shall be cancelled without return of premium, it added.
The stakeholders have been asked to offer comments to these recommendations on or before December 16, 2019.
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IRDAI
on Monday released the exposure draft, revisiting the framework for motor insurance enunciated in the general regulations (GR) of the erstwhile India Motor Tariff (IMT). The GRs have been rationalized and renamed as Motor General Regulation (MGRs) and all pricing related GRs have been deleted.As per the new recommendations, the depreciation and sum insured calculation has been made simple and the vehicle age-based depreciation has been recommended for partial losses to make it completely objective and remove all ambiguity and subjectivity in claim settlement. For brand new private cars, a new option has been recommended, where return to invoice is a part of basic cover. It is recommended that for private cars of up to three years, the sum insured shall represent the current day on-road price of the vehicle insured, including invoice value, road tax and registration charges and value of all accessories fitted thereon by the manufacturer. The value of accessories fitted by the insured shall be separately mentioned. For vehicles beyond three years, the sum insured shall be as per the suggested new depreciation table and beyond seventh year, sum insured shall be arrived at by a mutually agreed value between the insured and the insurer.
Meanwhile, in addition to the existing provision, it is recommended that in all cases of total loss / CTL (constructive total loss) as well as theft claims, the registration certificate (RC) of the vehicle shall be cancelled and claim shall be settled only after the insured surrenders such cancelled RC. The policy shall be cancelled without return of premium, it added.
The stakeholders have been asked to offer comments to these recommendations on or before December 16, 2019.
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