Page 336 - Motor Insurance Ebook IC 72

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insurer consider relevant and essential for their
underwriting practice and their record inputs will
provide for this.

Q 7. How TAC works as national repository for
statistical data? What kind of data it collects?

Ans; After detariffing TAC works and national repository
for statistical data it collects:
A. Underwriting output:
Loss ratios for different classes and sub classes
of motor vehicles: It can be used to compare with
the data for the individual insurer to ascertain the
deviation from national average- positive or
negative. This will provide the insurers with the
appropriate base premium to be charged for the
classes. The underwriting response to adverse
ratio can then be worked upon.

Loss ratio for different makes and models of
vehicles: A comparison of these ratios can highlight
the more loss prone vehicle and measures to
counteract them.

The output on claims break-up between OD &
TP claims across the various classes individually
and collectively. Adverse OD claims can result in

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