Page 403 - Motor Insurance Ebook IC 72
P. 403
Guide for Motor Insurance
On the other hand the 'National' has registered 47%
decline in net profit despite of highest premium
accretion and growth in general insurance industry
during 2003-04.
Their tie-up with Maruti and more recently Hero
Honda are expected to fetch around Rs.800 crore. As
part of measures to streamline their motor accident
claims, NIC has provided an increased outstanding
liability.
They are working out a de-risking model to minimize its
exposure to the motor insurance business. The new line
of thinking is to tap the profitable personal lines of
business
Q. 29. What is the affect of detariffing on motor
insurance business?
Ans: Motor insurance accounts for Rs.6400 crore of
premiums. Of this the own damage premium is around
Rs.4300 crore. The remaining is from compulsory third
party insurance.
The TAC has no intention of de-tariffing the third party
premium because of its statutory nature. Motor
insurance today accounts for over 45% of the premium
income of non-life insurance companies.
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