Page 36 - Motor Insurance Ebook IC 72

P. 36

The Insurance Times

IRDA the regulatory body of insurance in India set up
under IRDA Act, 1999 has introduced several changes
in the field of Motor Insurance. The most important one
is the withdrawal of the tariff in Motor Insurance with
effect from 1st April 2009.

However the wordings of 'Liability Only Policy' will
continue and the rates for 'Liability Only' are regulated
by the IRDA. With regard to "Own Damage" cover
the existing policy wordings are to be continued but
insurers are given freedom of pricing and permitted to
provide additional covers after obtaining the Regulators
clearance to the changes. The erstwhile tariff wordings
will remain as standard cover.

The two policy forms i.e. Liability only and Package
policy continue to be used. The authority has prescribed
proposal forms for third party 'Liability only Policy for
private car, two wheelers and commercial vehicles.

General insurers have introduced new "Add-ons" to their
motor policies to provide extra benefits at extra cost.
Policy wordings as per the erstwhile tariff are to be
continued, however additional covers as add-ons to the
main policy are permitted to be devised by the insurers
and filed with IRDA before introduction into the market-
this is known as the File & Use system.

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 36

31 32 33 34 35 36 37 38 39 40 41