The Insurance Regulatory and Development Authority of India recently introduced changes to the regulations governing motor insurance in India. Under the Motor Vehicles Act 1988, insurance cover for third-party liability is mandatory for all motor vehicles at the time of purchase. However, until recently, this third-party liability insurance had a mandatory one-year cover term and had to be renewed by the policyholder each year.
Although blockchain is relatively new, India has seen a few segmental adoptions of the technology, with some public authorities – including the Insurance Regulatory and Development Authority of India – acknowledging its potential benefits. Further, recent press reports have indicated that some insurers have already started contemplating various ways in which to implement the technology.
In recent years, the Indian insurance sector has been abuzz with the news of new players looking to acquire stakes in insurers and insurance intermediaries. While the Insurance Act 1938 provides for the manner in which insurers may carry out amalgamations and transfers of insurance business, the regulations governing the amalgamation or transfer of an insurance intermediary's business remain scattered and, in some cases, non-existent.
The Insurance Regulatory and Development Authority of India (IRDAI) recently released the IRDAI (Insurance Brokers) Regulations 2018 to revise the norms governing the establishment and operation of insurance brokers in India. The regulations have introduced a myriad of changes which largely appear to bring parity between the norms applicable to insurance brokers and web aggregators, particularly with respect to solicitation through online, telemarketing and distance marketing modes.
The Supreme Court recently upheld the validity of a quantum-only arbitration clause and affirmed that once an insurer has denied liability, arbitration is no longer an option (unless the insurer and insured come to an independent agreement to arbitrate). In its decision, the Supreme Court stressed the importance of reviewing an insurer's declinature letter to properly assess whether liability had been denied or accepted.