IRDAI not in favour of making insurance mandatory

IRDAI is of the opinion that insurance cannot be made mandatory despite India being a massively under-insured country.

“There has generally been a feedback that either the regulator (IRDAI) or the government should mandate certain types of insurance, but ideally the solution does not lie in mandating it,” said T L Alamelu, member (non-life) IRDAI.

“There is demand for mandating title insurance, drone insurance, and household insurance. The example before us is motor third-party insurance, which is mandated by law, but still there are huge issues of under-insurance,” she said.

The regulator is now encouraging states to share the details of uninsured vehicles so that reminders can be sent to vehicle owners.