reports on India’s drive to enforce Motor Vehicles Act and boost insurance industry growth

© Reuters.

The Department of Financial Services (DFS) has issued a directive to state governments, private general insurance firms, the Ministry of Road Transport and Highways, and the General Insurance Council to enforce the Motor Vehicles Act. The mandate was communicated on Tuesday in a meeting chaired by DFS Secretary Vivek Joshi.

In a bid to stimulate growth in the health insurance sector, Joshi encouraged insurers to collaborate with the Ministry of Health. This partnership aims to enhance cashless facilities and standardize healthcare costs. The secretary believes these steps will foster an environment conducive to the expansion of health insurance.

To further boost the overall insurance industry, DFS plans to hold regular meetings with both private and public sector entities. A range of strategies were discussed during Tuesday’s meeting. These include augmenting coverage through State Insurance Plans, optimizing distribution channels, and advocating for property and parametric covers.

The DFS also highlighted the importance of ensuring insurance for Micro, Small, and Medium Enterprises (MSMEs). Another proposed strategy is linking insurance fraud incidents to Credit Information Bureau (India) Limited (CIBIL) scores as a fraud mitigation measure.

These initiatives underscore DFS’s commitment to fostering growth in the insurance industry while ensuring consumer protection through robust regulatory measures.

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