As per the new guidelines issued by the Insurance Regulatory Development Authority of India (IRDAI), the automobile dealers who distribute car insurance will have to surrender their existing license and become MISPs to be eligible to sell insurance to customers. The new guidelines are expected to come into force from Nov 1, 2017.
Dealers who are currently distributing insurance will be referred to as Motor Insurance Service Providers (MISP) as soon as they get licensed under the new guidelines of IRDAI. MISPs will also be granted a Unique Identification Number (UIN) that will be linked with their Aadhaar Card number.
Why This Initiative?
The objective of this initiative is to oversee the activities of dealers that are sell motor insurance, which will, in turn, ensure security in the transaction process and guarantee customer-oriented services.
How Is the Initiative Going to Be Implemented?
Post the acquirement of the new license, MISPs will not be able to show
Having said that, the existing automotive dealers will stand ineligible to distribute insurance. They are required to first surrender their existing license and become
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(Source and Credits: TEAM-BHP)