The Insurance Regulatory and Development Authority of India on 5th January 2021 has notified the Draft IRDAI (Obligations of an Insurer in respect of Motor Third Party Insurance Business) Regulations 2022 which shall be applicable to every insurer carrying on general insurance business and underwriting motor insurance business.
The objective of these Regulations is to specify minimum third party motor insurance business that the insurer carrying on general insurance business is required to underwrite under section 32D of the Insurance Act, 1938.
The categories of vehicles on which the obligations shall be applicable are:
a) Two-wheelers,
b) Private cars, and
c) all vehicles plying on the road other than Two-wheelers and Private cars.
However an insurer carrying on general insurance business and underwriting motor insurance business shall be exempted from the application of the obligatory requirement during first two financial years of its operations. For the period of exemption, such insurer shall also be excluded from the calculations for determining the minimum obligatory requirements for other existing insurers.
Further any insurer who is primarily engaged in the business of health, reinsurance, agriculture, export credit guarantee is exempted from the applicability of section 32D of insurance act, 1938.
IRDAI has invited comments / suggestions from the public on the above draft, which shall be addressed to Mrs. J Anita, General Manager (Non-Life) at janita@irdai.gov.in with a copy to sagar.bangal@irdai.gov.in before 25th January 2022.
