Third Party motor insurance policies to be available online

According to a circular issued by the Insurance Regulatory and Development Authority of India (IRDAI), the Supreme Court Committee on Road Safety has directed insurance companies to make Third Party liability only policies available online.

Until recently, insurers had to follow a time-consuming process that involved inspection of the vehicle. Also, vehicle owners had no other choice but to visit the nearest branch of the insurance company to get their vehicles inspected and pay either through cheque or cash. The online system is an attempt to make the process of obtaining a Third Party insurance policy easier.

Besides this, the committee has directed insurers to cooperate with the police authorities to make the process of issue or renewal of Third Party liability policy to owners of vehicles who haven't got a valid insurance policy easier. Insurance companies will also have to ensure the easy availability of Third Party motor insurance and cannot deny a request for a Third Party cover.

The committee has also directed state and union territories to carry out periodic checks to see whether vehicle owners have Third Party insurance cover. In case the vehicle owner fails to produce a valid Third Party insurance policy, the authorities can detain the vehicle until a valid insurance certificate is produced.