IRDA issued revised Guidelines on Motor Insurance Third-Party obligations. Explain.

The regulations for motor insurance third-party insurance have been revised by IRDAI. Insurers are now required to ensure a minimum percentage increase in the number of goods-carrying vehicles, passenger-carrying vehicles and tractors insured over the previous financial year. The new criteria exclude the coverage of new vehicles, focusing instead on renewals and uninsured vehicles that have had a lapse in insurance of at least 30 days. This aims to stabilize the motor third-party insurance market and ensure continuous coverage of vehicles already in the system. Additionally, insurers are mandated to underwrite a minimum number of goods-carrying vehicles, passenger-carrying vehicles and tractors in the first financial year after the regulations are notified. This will likely lead to an increase in underwriting activities and a more significant emphasis on maintaining and renewing existing policies, which will ultimately safeguard the third party interest.