General insurers have sought more time from the Supreme Court to implement its directives on making long-term third-party insurance mandatory and ensuring pollution under control (PUC) certificate is in place before motor insurance is issued.
Supreme Court had earlier directed the IRDAI on July 20 to ensure that from September 1 third-party insurance is in place for three years in case of four-wheelers and for five years in case of two-wheelers before vehicles are sold. “We are discussing the long-term third-party motor insurance issue with the regulator and will file an appeal petition with the Supreme Court seeking adequate time on smooth implementation of the directive,” said R Chandrasekaran, secretary general of General Insurance Council.
Insurers said that long-term third-party cover would lead to customers losing out on the benefits of discounts on premium.
“There will be no differentiation between good and bad risks, hence a good customer will end up subsidising for bad risks,” said Kamesh Goyal, Chairman, Digit Insurance. “All no-claim bonus customers will be locked at nil no claim bonus for three years. Therefore, there will be no benefit for long-term claim-free experience.” To increase the number of insured vehicles on roads, the Supreme Court Committee on Road Safety asked IRDAI to offer a mandatory long-term policy for vehicles at the time of sale.
