IRDA to roll out vehicle insurance tracking system

The Insurance Regulatory and Development Authority (IRDA) plans to unveil a web-based system in order to track vehicle insurance status in a month's time. IRDA will be launching the system formally from June 9 and will have a database of all the insured vehicles from across India. Meanwhile, the data will also be shared with the transport and police authorities in different States. Meaning, that the Road Transport Authority (RTA) in every State will have way in to the insurance status of different vehicles on the road. They can also launch a drive to track down challan defaulters. The good thing for insurance companies is that the centralised data will help them avoid duplications or multiple claims. Moreover, the system will make a big difference for the vehicle owners and general insurers. The premium per policy is expected to decline, as all vehicles will now have to be insured. The third-party insurance procedure will now be efficient, especially for victims of hit-and-run cases. The system may help reduce insurers' losses as these claims will be settled from a 'Solatium Fund' now while currently, the insurers pay for losses caused by the uninsured vehicles. The new system will also help them verify the insurance status of any vehicle, as the data are to be shared with the transport authorities and the police. Earlier, it was said that many insurance companies were taken by surprise, as the Insurance Regulatory & Development Authority (IRDA) changes disclosures norms regarding Unit-Linked Insurance Plans (ULIPs) under the head of controlled fund. As per the investment guidelines, investments under controlled funds are regulated by IRDA. For example, 50 % of the traditional policies fund is invested in government securities, 15 % in infrastructure and 35 % in equity and other approved securities. Meanwhile, IRDA had said that the Initial Public Offer (IPO) guidelines for the insurance sector are likely to come by next month. Mr. J Harinarayan, Chairman of IRDA said the IPO guidelines could take a month-time and the final decision would be taken by Securities and Exchange Board of India (SEBI). Mr. Harinarayan said that the valuation norms for the company has been finalised and sent to the Institute of Actuaries. Once Institute of Actuaries committee clears the valuation norms, it will be sent to SEBI and then the market regulator would take a final call. Before issuing the final norms, IRDA, which has been working on the guidelines along with SEBI, is likely to come out with a draft for public comments. The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements. Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto."