Hyderabad: If you are one who takes your car insurance lightly, better be careful.
Soon, the cops will be able to track you down through hi-tech vehicle insurance status SMS system (VISSS), thanks to the Insurance Regulatory and Development Authority's initiative.
The system, being planned by the regulator will provide an additional facility to the police officials to verify insurance status of the vehicle.
Currently, the only way of examining is to physically check the certificate of insurance.
According to a draft on the proposed VISSS circulated by IRDA to the General Insurance Council, general insurers and transport commissioners, the VISSS would help dealing with hit and run death cases caused by uninsured vehicles.
The insurance claims of these cases are being paid from a Ã¢Â€Â˜Solatium Fund' now and the insurers are paying for the losses caused by the uninsured vehicles.
"The objective of the VISS is to provide instant and easy availability of insurance status and real time availability of micro figures of motor insurance," says the draft.
In addition, it would also double up as a facility to locate uninsured vehicles and bring them into the insurance net. The Web-based VISS would collect up-to-date data from all general insurance companies at one central hub and disseminate information to all stakeholders instantly. The submission of data by each underwriting office would be monitored on a daily basis and report would be generated.
Anyone wanting to know the insurance status of any vehicle plying in India has to SMS the registration number of the vehicle to a telephone number connected with the portal. After searching the data, the insurance status of the vehicle with period of cover will be sent through SMS.
The proposed system would help in ensuring better compliance and developing the market, say experts.
"The idea is interesting. Any move directed towards better adherence to regulation and increasing the general insurance penetration is welcome. I am yet to see the draft in its entirety," Dr Amarnath Ananthanarayanan, Chief Executive Officer, Bharti AXA General Insurance Company Ltd, told Business Line.
"There is some negligence in renewing vehicle insurance policies. Electronic monitoring is definitely a good move," said a senior official of Bajaj Allianz.