Many vehicle owners are still not clear if it is mandated to carry original papers or a digital record will be enough.
Technology and new digital mediums are bringing a radical change in the way we drive our vehicles. As an owner of a vehicle, one is required to carry proper papers relating to ownership and insurance while driving them. However, provisions have been made in the law which may not require one to carry physical copies of the documents when traffic officials ask to furnish them. Many vehicle owners are still not clear if it is mandated to carry original papers of license, insurance, registration papers or a digital record will be enough. We asked Indraneel Chatterjee, Principal Officer, RenewBuy.com through an e-mail interview to know the actual situation. Also, at times a lot of car and bike owners purchase insurance from the dealers from whom they buy the vehicle. Let us see what Indraneel has to say on that.
Can the car or a bike driver show digital papers to the traffic officials? Is digilocker driving license valid?
The Ministry of Road Transport and Highways has issued a notification that a digital copy of documents such as driving license and a vehicle’s registration, insurance etc. which are stored in Digilocker or mParivahan mobile app, will now be accepted legally along with the actual physical documents. Original papers or photocopy of the same is no longer mandated.
The fresh notification is aimed at enabling the use of digital platforms for carrying essential documents such as driving licenses and registration certificates while travelling. It is also aimed at notifying enforcement officers who may not be aware of the new provision.
Buyers of car or bike often get the insurance purchased from the dealer itself. What should they be aware of in doing so?
A lot many times, dealers are corporate agents of the insurance company hence the premium can be higher when bought through them. At a dealership, the customer doesn’t have choices and hence is unable to compare costs or plans, which is the most crucial step in buying a policy. To avoid hassles and going through the whole process of buying insurance on their own, customers find it convenient to go through the car dealers. A buyer may receive perceived discounts on the deal since overall car or bike cost comes bundled with an insurance policy. Customers should explore other insurers and modes of buying including online insurance buying options, which give you choices and the best deal.
Budget 2019 has increased FDI in insurance intermediaries to 100 per cent. How will it stand to benefit the potential buyers and existing policyholders?
Penetration of Insurance in India is abysmally low as compared to worldwide figures. The figures are particularly stark in low ticket size categories, like two-wheeler Insurance, Personal Accident, Term etc., where the ticket size of products are much low. The primary reason for low penetration is the unavailability of suitable distribution reach. We feel the opening up of the FDI in Insurance will enable companies to build reach till the last layer of our society. This will not only be good for the sector as such but will be extremely beneficial for the Indian society in general. As companies build their reach, the move will also enable job creation – a massive need for our country today. Thus we feel the move will have wide ramifications to build the protection element across all layers of society and will also assist in income generation for Indian working youth – which is slated to become the largest in the world soon.