Page 8 - Insurance Times September 2019

RC of stolen, scrapped ve- Norms for Regulatory Sandbox notified by IRDAI
IRDAI said that it has notified regulations regarding the Regulatory Sandbox
hicles needs to be can-
approach in order to promote innovation in the sec-
celed: IRDAI tor had been notified. The regulator said guidelines on
IRDAI has recently directed insurers the operation of the Regulatory Sandbox have been
to en- figured in the regulation, outlining the procedure to
sure Cer- be followed in implementing the “innovation in insur-
tificate ance” programme.
of Regis- The regulations aim to keep a balance between protection of interests of poli-
tration cyholders on one hand and orderly development of insurance sector on the
(RC) cancellation of the vehicle in other, while facilitating innovation. The main focus is to facilitate creation of a
case of total loss claim settlement. regulatory sandbox environment, and relax provisions, if required, of any ex-
“It has come to the notice of the isting regulations. Application for implementing the innovative solutions can
IRDAI that in the case of total loss be made in the areas of insurance solicitation or distribution, insurance prod-
(TL) of the vehicle, salvage of the ucts, underwriting, policy and claims servicing.
vehicle is being sold to scrap deal- Firstly, the authority will be inviting applications for the Regulatory Sandbox from
ers without cancelling Certificate of September 15 to October 14. According to the regulations, Regulatory Sandbox
Registration of the vehicle,” IRDAI means an environment used in the financial services sector that provides test-
said in a notification. ing ground for new business models, processes and applications which may not
In accordance with IRDAI, the law necessarily be covered fully by or are not fully compliant with existing norms.
enforcement authorities have in-
formed that documents pertaining IRDAI to launch pilot project for uninsured vehicles
to such vehicles are being misused A pilot project will be launched by IRDAI in order to drive awareness campaign.
through forging engine number and The upcoming project will help the insurance com-
chassis number of destroyed ve- panies in improving their premium collections, said
hicles under TL claims. IRDAI chairman S C Khuntia.
The Section 55 of Motor Vehicle Act Four state governments have been roped in for this
1988 underscores that if a motor ve- project. "We are working with four state govern-
hicle has been destroyed or has ments on a pilot project on how to contact the own-
been rendered permanently inca- ers of the motor vehicles that are not insured and send communication to them
pable of use, the owner should, that they come and renew," Khuntia said.
within 14 days or as soon as may be, It is mandatory under the Motor Vehicle Act to have third party insurance. He
report the fact to the registering further said that traditionally motor vehicles have been a segment which used
authority within whose jurisdiction to give about one-third of the premium but this year there is a little bit of dif-
he has the residence or place of ficulty as there has been concerned about the sale of automobiles. "I hope with
business where the vehicle is nor- the government support the automobile sector will also improve its sales in
mally kept. They should also for- the near future," Khuntia said.
ward the certificate of registration
of the vehicle to the registering au- IRDAI asks insurers to expedite life insurance claims in
thority. The registering authority
should cancel registration and cer- flood-hit states
tificate of registration, it said. IRDAI has asked insurers to relax procedures wherever possible to expedite life
insurance claim settlements in flood-affected states. In a circular sent to Chief
In case of a vehicle is stolen, the
Executive Officers of all life insurance companies, the authority had directed
owner must notify the police and them to initiate immediate action “to ensure that all reported claims are reg-
the insurance company immedi- istered and eligible claims are settled expeditiously.” “A state-wise progress re-
ately. Under a motor insurance port on the claims settled should also be submitted to the authority,” it said.
policy, there are two major compo-
With regard to claims involving loss of life where difficulty is faced in obtain-
nents: Third party insurance and ing a death certificate due to non-recovery of body, the procedure followed in
Own Damage Insurance. the aftermath of the floods in Chennai in 2015 may be considered.

8 The Insurance Times, September 2019