The regulator warns insurers of necessary action if complaints are received from the public with evidence.

Our Bureau

Hyderabad, March 20

The Insurance Regulatory and Development Authority (IRDA) re-iterated that motor third-party insurance cover is mandatory, required under Section 146 of the Motor Vehicles Act 1988, and cannot be denied by any insurer.

Such denial would attract necessary action, IRDA warned the general insurers.

In a notification on Monday, the regulator informed the members of the public that it had on several occasions instructed all the general insurers that they cannot refuse to accept third-party insurance cover.

The regulator said regional transport authorities, transporters and members of the insuring public have in the recent past brought to its attention the instances of refusal of motor insurance by general insurance companies.

"Members of the public may bring to the notice of the Authority any refusal of motor third-party insurance(s), of vehicles used by them, by general insurers along with evidence thereof so that the Authority can take necessary action," the IRDA Chairman, Mr C.S. Rao, said.

(This article was published in the Business Line print edition dated March 21, 2006)
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