Big Win for Car Owners : All general insurers can now sell their vehicle insurance policy to the consumers on the network of all auto dealer network without tying up, according to the new Guidelines issued by the Insurance Regulatory and Development Authority India (IRDAI). Insurance companies are allowed to impose differential pricing just like they are allowed to charge a higher dealer commission.
This will enable consumers to obtain a greater number of insurers from whom to compare premiums. While the change will create a competition among the insurers to offer a competitive premium, it will free the consumer whose choice was limited to the company which had exclusive tie-up with the dealer.
The nodal point for distribution and renewal of vehicle based insurance policies was also recognised by the IRDAI circular dated 31 st August 2017 stating the importance of auto dealer in the channel for distribution. The announcement further enabled insurance companies to pay excess commission to the dealer.Compliance with the guidelines to car dealers Vehicle dealers can also take advantage by selling policies to customers who purchased vehicles from other dealers.