Page 307 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

However, any travel specifically to service a claim shall
be recoverable as claims related expenses.

Agreement: the insurers and GIC shall enter into a
multi-lateral reinsurance arrangement to give effect to
this pooling scheme.

Review: The authority will review the operation for the
pooling arrangement and the need for regulation of the
premium rates and terms of the cover and will issue
such directions from time to time as may be considered
necessary.

The directions of the IRDA thus specify that all insurers,
in the non-life other than health insurance business, will
be a party to the poling of risk of TP insurance. All
offices of insures are required to underwrite such
business.

The pooling of the business will be shared by a
reinsurance arrangement involving the underwriting
office as ceding insurer and other insurers and
reinsurers; as GIC is the only operating reinsurer in
the market at present, GIC will also participate in the
pool;as ceded reinsurers. Future insurance and
reinsurance companies will automatically participate
in this pool.

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