As against the earlier practice in which you had no option but to buy insurance plan for your car from the insurance company with which your car dealer had tie-up, you now have the option to choose the insurer as per your discretion.
This is possible after the recent ruling, which allows all general insurance companies to sell their insurance offerings through car dealers.
1. Motor Insurance Service Provider or MISP has to be sponsored by either the insurance company or some intermediary.
2. MISP need to provide all possible choices to insurers with differential pricing and upon selection by the car insurance buyer need to give in the receipt after receiving the payment for the policy.
3. All guidelines and features incorporated in the insurance plan that are in the interest of the consumer need to be detailed.
4. Also, MISP is advised to enable the creation of e-insurance account for the motor insurance policyholder. Pricing of each of the policy shall be decided by the insurer and it is insurer who needs to oversee that that pricing well follows the guidelines laid down by the regulator.
5. Also, higher commission has been allowed to these car dealer networks and these shall be paid out by the insurers.