Motor covers can now be sold via dealers

Recently IRDAI allowed all general insurers to sell motor cover policies through auto dealer networks by offering differential pricing.

Earlier, it was mandatory for customers to buy auto insurance from an insurer with whom the dealer already has an exclusive arrangement. Also differential pricing was not allowed resulting in reward to good customers and ensure higher premium for bad customers.

United India Insurance, which gets 40 % of its total premium from motor insurance, expects that the new regulations will not affect its new business coming in through dealers.