IRDI, Insurance Regulatory and Development Authority of India has recommended a non-profit organization for reducing the loses in motor insurance. Loss prevention and minimizing activities will help insurers to provide better client experience in different ways. This non-profit body is responsible for mapping the accident spots and standardizing the repair costs.
The IRDI promoted body initially works in the area of property and motor insurance. The insures also takes necessary steps for the payment of claim and risk assessment. They also take experts’ help for assessing the risk and it will reduce the loss ratios. Road safety campaigns will be organized by the recommended body to map the high exposure accident spot across India. Police and insurers will be a part of these campaigns. They will be collaborating with automobile manufacturers and police for Safe driving programs and to reduce stolen vehicles and quick recovery of and disposal of stolen vehicles.
According to the report by IRDI says that the surveyors and investigators play an important role in controlling the losses and preventing the frauds. There is a need to analyze the findings by the surveyors. Currently, the Insurance Information Bureau of India (IIBI) has been providing claims search functionality and each insurer has its method of analytics. The new authorized body can integrate all these activities for the smooth functioning of insurers. The report also suggested that linking motor insurance premiums to traffic offenses and identifying uninsured vehicles and following it up with state enforcement agencies towards ensuring that more vehicles are insured.
In motor insurance, Insurers use telematics for real-time navigation, roadside assistance, and vehicle tracking. The report recommends popularising the telematics technique because it will help insurers in better segmentation of customers by assessing risks accurately. It will also help insurers to calculate accident damage more accurately and reduce fraud claims by analyzing driving data. The 10 member working group formed in 2019 underlined the importance of preventing motor insurance losses. The working group also suggested a garage network master for standardizing the repair cost. The repairers can be evaluate based on their performance and blacklisting also can be done with the help of the General Insurance Council and Insurance Information Bureau of India.