Page 308 - Motor Insurance Ebook IC 72

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The sharing arrangement will be in the case of GIC its
statutory reinsurance sessions, this is presently 15%,
hence GIC's share will be 15% of the TP Pool. The
balance thereafter being 85%. With regard to other
Insurers it will be in proportion to their Gross Direct
Insurance premium (GDPI) for the underwriting year
example: New India's GDPI is 17% and ICICI Lombard
is 12% respectively.

The General Insurance Council- a body representing all
non-life insurers- has been given the authority to lay
down the rules and procedures for underwriting,
accounting and settlement. The rates and terms for TP
insurance are to be decided by the IRDA. In effect
motor TP insurance will continue under tariff.

The General Insurance Council will also ensure smooth
functioning and timely settlement of claims. The pool
will be administered by the GIC. The IRDA notification
also lays down the commission and remuneration fees
for the arrangement.

Q 3. What is the necessity of Third Party Pool?
Elaborate the functioning of TP Pool.

Ans : The Motor TP pool came into existence in Jan 2007.
However the pool is functioning only for claims reported
for Commercial Vehicle insurance. The General

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