Page 302 - Motor Insurance Ebook IC 72

The Insurance Times

Q. 1. What is a Motor TP Pool? What is this applicable
Ans: for?
The introduction of private insurers in India in 2000
following the passing of the Insurance Regulatory and
Development Authority Act has brought about intense
competition in the market for insurance business. No-
life or general insurance business too has been exposed
to this competition. However, the existence of the Tariffs
in Fire, Motor, Engineering and Workmen's
Compensation muted this competition to some extent.

There has been a cut-throat competition in the other
non-life business and scramble for the best risks in the
Tariff business. As the restrictions of the Tariff were
seen to be a barrier for differentiation of product and
development of new products, the insurers were
demanding scrapping of the tariffs and freedom to devise
policy wordings and determine rates to grown in the
market.

Motor insurance command a large slice of the
miscellaneous insurance business in India. Unfortunately
it also has the highest claim ratio due to Third Party
Liability, predominantly due to Commercial vehicles.
The advent of private insurers saw a skewed
development in the motor portfolio.

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