New Unified Motor Insurance Policy: Insurance Authority Requirement30 December 2016
IA, the Insurance Regulator, has passed new regulations that requires all Insurance companies to adhere to, as a minimum, the covers and tariffs including excess and premium, stipulated as part of the new Unified Motor Insurance Policy. The Insurance Authority Board of Directors Decision No. (25) of 2016, effective 1st January 2017, every customer's Motor Insurance premium and excess needs to be compliant with the requirements set by the regulator.
At RSA, we take it as our utmost responsibility to be fully compliant with the regulator and therefore, all our customer touch points i.e. Call Centre [800RSA], Website and Branch office will be issuing Motor Insurance policies as per the terms and conditions set by the new regulations from 1st January 2017.
As a customer, if you have procured an insurance quote from us for your vehicle, please note that your premium and excess amounts will have some revisions, should you wish to buy the policy from us after 1st January 2017.
We encourage you to familiarise yourself with the new Unified Motor Policy wording:
1] Policy Wording
As a start, we recommend that you read the Unified Motor Policy wording from IA. Click here to access the same.
2] Minimum Premium & Cover Levels
IA have also implemented a 'minimum' premium that is dynamic based on the Policy and Motor Vehicle type. Please click here for the mandatory minimum premium Tariff for Third Party Liability cover and click here for the mandatory minimum premium Tariff for Comprehensive cover as per the new IA regulation.
At RSA, we take pride in the comprehensive and market-leading covers we provide to our customers and partners which are generally in excess of the minimum cover required under the new regulations. Therefore, we will maintain our current coverage levels in the segments where it is higher than the IA prescribed minimum and the associated minimum premium.
You will notice that, as a customer, you will have access to wider benefits, including a Third Party customer being entitled to a substitute Motor Vehicle for loss of use of their Motor Vehicle following an accident.
3] Policy Excess
Another significant change is with respect to the Policy Excess. IA have prescribed the Excess chargeable, based on the Motor Vehicle type. Please refer to the new Loss and Damage Policy Wording, Chapter 3, Point No.6 Schedule No. (3) and Point No.7 for more information.
4] Refund Premium Calculation
The IA have clarified the calculation method with respect to the premium refund for cancelled policies which will be done on a short period basis as opposed to on a pro-rata basis, which is currently being followed by RSA. For more information, please refer to new Loss and Damage Policy Wording, Chapter 6 and Schedule No. (4)
5] Proposal Forms
Lastly, an important requirement mandated by IA is to obtain a signed Proposal Form from each customer for new and renewal policies. All information, including accurate mobile number, email ID and related details are required in order to be fully compliant with the regulator.