Page 338 - Motor Insurance Ebook IC 72

The Insurance Times

high claims here reflect poor underwriting or
unexpected catastrophic events for the year.

3. Incurred claims ratios are a truer picture for the
business as they adjust for previous years losses.
Claims paid in the period and outstanding at the
end of the period less outstanding at the start of
the period. Here too the statistics can be generated
on consolidated basis or break-up as to coverage
and even age & vehicle category basis.

It cannot be more emphasized that an accurate and
comprehensive data collections is essential for
generating outputs that would be valuable to an insurer
in deciding the risks to accept and the appropriate terms
to ensure a profitable portfolio in a competitive
environment.

Q.8. Illustrate the benefits of Information technology
Ans: in motor insurance.
Motor insurance in India is a mandatory requirement
for all vehicle owners. Whether you use it for individual
use or commercial purpose, you need to have an auto
insurance policy in place.

Vehicle insurance policies in India have been devised
to insure private cars, two wheelers, and commercial

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