The insurance regulator is contemplating scrapping the third party motor pool from which claims of all accident victims are settled, possibly doubling the insurance premium for millions of automobile buyers.
“The industry has been demanding it for sometime,” said Mr. J Hari Narayan, Chairman of the Insurance Regulatory and Development Authority.
“This can be one way of going about it,” Narayan told, after meeting insurance companies during first week of November, 2011
Third party motor pool-a corpus of funds created by general insurance companies- has been opposed by private sector insurers, who allege they are being forced to contribute disproportionately to the corpus.
State-run insurance companies, such as New India Assurance, which dominate auto insurance with nearly half the market share benefit from the pool as the liability is socialized.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment