Page 404 - Motor Insurance Ebook IC 72

The Insurance Times

The portfolio witnessed 225% losses in third party
segment but the Tariff Advisory Committee has not
been able to revise the tariff upwards because of
protests from transporters.

Now with the deregulation of Motor Tariff the
companies that intend to provide discounts will have
to justify them, while those planning to include add-
on features of motor insurance will have to show that
these covers have been priced properly.

Third party claims in motor insurance have hit all the
non-life insurance companies hard with some
companies having to shell out as high as 30% of the
motor insurance premium collected. Some state-
owned companies have asked to make it mandatory
for vehicle owner to buy onetime third party insurance
for 15 years.

In India, in the non-life sector the concerns on
profitability were higher because of imminent de-
tariffing that could possibly lead to a rate-war as
companies scramble to build market share.

Insurance companies are data rich but information poor.
In India the health and motor businesses are the fastest
growing. But these are also the segments with the

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