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Insurance Article

Electronic Detection System to Keep Track of Motor Insurance

March 18 2015

A recent study conducted by the Insurance Information Bureau of India (IIB) revealed that 55% of registered vehicles in India do not possess the mandatory Third Party Liability insurance. The study pointed out that although vehicle owners purchase the mandatory insurance policy, they do not renew it. To ensure vehicle owners are covered by the mandatory insurance, the IIB is working closely with other agencies, primarily the Police Department and the Road Transport authorities, to come up with an electronic detection system. This system will keep a track of vehicles that have not availed and renewed their mandatory motor insurance.

A pilot study was conducted in Cyberabad to try out this system. This pilot project was conducted in association with the Police Department and the Regional Transport Office (RTO), and it stated that there are 3.05 lakh uninsured vehicles in that vicinity. This detection system will firstly be implemented in National Capital Region, Gujarat, Maharashtra, Madhya Pradesh, Andhra Pradesh, Telangana and Kerala before being applicable throughout the country.

With an increase in the number of renewals of the mandatory insurance policies, it is speculated that the premium rate for comprehensive motor insurance policies might reduce.

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