Page 306 - Motor Insurance Ebook IC 72
P. 306

The Insurance Times

         arrangement. It will act under the guidance of the
         General Insurance Council. For this purpose, the
         Council may establish such Committees of insurers as
         are necessary to operate the Pooling arrangement and
         process and settle claims in the most efficient manner.

         Remuneration : There will be no agency commission or
         brokerage payable in respect of motor third party
         insurance business. The underwriting insurer will be paid
         a reinsurance commission of 10% on the premium ceded
         by it to all the other insurers and reinsurers. The GIC as
         administrator shall be paid a fee of 2.5% of the total
         premium on motor third party insurance business in
         respect of the business underwritten for the pooled
         account.

Each insurer shall bear the cost of hardware required
to operate the pooling arrangement within its offices.
The GIC will bear the cost of hardware necessary to
administer the pooling arrangement in its office. The
cost of the operating software for the pooling
arrangement shall be shared by all the insurers and
reinsurers in the manner decided by the General
Insurance Council.

Each insurer shall bear the cost of travel of its executives
to attend to the work relating to the pooling arrangement.

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