Irda for change in motor vehicle law to insure drivers

Talking to the media on the sidelines of an industry event,he said,“the motor vehicle law must change. The present requirement is to insure the vehicle and not the driver. I think the requirement should shift from the vehicle to the driver. In other countries this already is the rule”.

Already the cost of vehicle ownership has gone up from April when the third-party motor insurance premium was raised by up to 65 per cent for two-wheelers,private cars and heavy load carriers.

The premia were revised after four years. But the sectoral watchdog said from this year onwards the third-party motor insurance premium rates will be revised annually. Stating that there is huge potential in the motor insurance segment by improving monitoring to track errant vehicle owners,he said that better coordination with the police can help improve this.

Admitting that the Irda’s own mechanisms to track renewals are very weak,he said one good system that is coming up on now is to build a database for the vehicles across the country.