Page 171 - Fire Insurance Ebook IC 57

The Insurance Times

IRDA Guidelines on file & use procedures for general
insurance products:

(i) Design and rating of products must always be on sound and
prudent underwriting basis.

The contingencies insured under the product should be clear
and provide transparent cover which is of value to the
insured.

(ii) All literature relating to the product should be in simple
language and easily understandable to the public at large.

(iii) Th e in su r an ce p r o d u ct sh o u l d co m p ly wit h all th e
requirements of the Protection of Policyholders' Interests
Regulations 2002.

(iv) Insurers should use as far as possible, similar wordings for
describing the same cover or the same requirement across all
their- products.

(v) The pricing of products should be based on appropriate data and
with technical justification.

(vi) The terms and conditions of cover shall be fair between the insurer
and the insured.

(vii) Margins built into rates shall be consistent with the experience of
the insurer in respect of commission, management expenses,
contingencies and profit.

(viii)Insurer should take necessary steps in ensuring that competition
will not lead to unprincipled rate cutting and other improper
underwriting practices.

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 184

Copyright@ The Insurance Times. 09883398055 / 09883380339