Page 199 - Fire Insurance Ebook IC 57

The Insurance Times

international markets. According to the new File
and Use guidelines it is not permissible to place a
product under this category by merely referring to
a re insurer for the rates and terms.

It should genuinely relate to the risks that are not
within the underwriting or rating capability of the
Indian insurers. In respect of such products the
insurers quote the terms in line with the terms
quoted by the re insurers including the extent
of cover , deductibles and claim conditions.

Q 12. What points must be covered in the
underwriting policies that are placed before
the board.

Ans. The following points must be covered in the
underwriting policies that are placed before the
board.
(i) The underwriting philosophy of the company in
the matter of underwriting profit expectation . No
insurer consciously underwrites business at a loss,
however, a small underwriting profit margin is

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