Page 337 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

follow-up action, in the form of loading of premium
or applying specific terms or restrictions.

The statistical data output on age of vehicles and
the loss ratios thereon a can generate appropriate
responses for acceptance of risks and the terms
thereof.

Distributions of vehicles across RTA zones can
assist in deciding targets for development of
business or shrinking of market based on loss ratios.

B. Claim output:
The claims reports generated from the data are
normally expressed in the following forms:
1. Claims paid in absolute terms against premium

class wise. This statement will give an overall
picture of the profitability or otherwise fo the motor
portfolio of insurers across class wise.

2. Distribution of premium and claims coverage wise
and class wise. This is snapshot of the distribution
of premium and claims for OD & TP. It is still on
absolute terms but gives a truer picture of the
underwriting practice of companies.

OD premiums are within control of insurers; hence

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