According to the IRDAI, though, general insurers enter into service agreements with motor workshops/garages for the purpose of providing motor insurance claim services for repair of accident vehicles,it is noticed that the service agreements in addition to claim services, extend certain assistance services not related to insurance claims such as free pick up and drop of vehicle, body wash, interior cleaning, inspection of vehicle etc.
Hyderabad:
After detecting that the general insurers are misleading customers while advertising on motor premium, the insurance regulator IRDAI has asked them to discontinue these advertisements in respect of the services not related to insurance claims as may be provided by motor garages/workshops.
A perusal of advertisements issued by a few general insurers showing discounts up to certain percent, saving in the premium etc., and the illustrations provided therein, reveals that the features or benefits are applicable under extreme or exceptional scenarios,said the IRDAI.
The discounts in certain advertisements are not shown objectively on filed rates but expressed in comparison to rates of erstwhile tariff. This is not to be done, said the IRDAI.
The regulator has asked general insurers to stop displaying discounts with reference or comparison to rates of erstwhile tariff.
“General insurers have to ensure that the discounts and saving in the premium which may be applicable only under extreme or exceptional scenarios shall not be displayed as examples,’’ said the IRDAI.
Considering that the quoting of motor premium rates is dependent upon multiple factors and a variety of risks, the contents of the advertisements which may be applicable under extreme or exceptional scenarios would make a large number of prospective customers vulnerable to wrong understanding, said the IRDAI.
According to the IRDAI, though,general insurers enter into service agreements with motor workshops/garages for the purpose of providing motor insurance claim services for repair of accident vehicles,it is noticed that the service agreements in addition to claim services, extend certain assistance services not related to insurance claims such as free pick up and drop of vehicle, body wash, interior cleaning, inspection of vehicle etc.,
While the bundling of the above facilities with insurance is left to the motor service providers, the general insurers issuing advertisements on the said services, projecting them as benefits provided within the insurance cover is unacceptable, said the IRDAI. The main objective of service agreements with motor garages/workshops willl only be providing insurance services for claims of accident vehicles and it cannot arbitrarily expand to include scope of services which are not relevant for insurance claims, cautioned the IRDAI.