The Insurance Regulatory and Development Authority of India (IRDAI) had issued Motor Insurance Service Provider (MISP) guidelines in 2017 with the intention of streamlining the process and bringing the practices of vehicle insurance, being sold by automotive dealers under the provisions of the Insurance Act, 1938.

MISP refers to an automobile dealer appointed by the insurer or the insurance intermediary to distribute and/ or service motor insurance policies of automotive vehicles sold through it.

Buyer of a new vehicle may have to pay the cost of vehicle and insurance premium through separate cheques, if the recommendations of a committee to review MISP guidelines are accepted by the insurance regulator IRDAI.

In June 2019, the regulator had set up a committee to review the MISP guidelines. The panel has submitted report in which it has made various recommendations for orderly conduct of motor insurance business through MISP channel. Under the present system, it said there is a lack of transparency in the cost of insurance premium when the customer buys the vehicle for the first time through the automotive dealer and makes the payment through one single cheque.

According to the report, the motor insurance business sourced by MISPs through brokers and insurers put together constitutes around 25 percent of the total motor insurance business or around 11.25 percent of the overall general insurance business.

Kia unveils new logo and global brand slogan

Hyundai Motor releases official teaser video of Kona N SUV

Govt approval expects to vehicle scrappage policy soon: Nitin Gadkari