Page 22 - Insurance Times November 2020

Cover Story

NEW PRODUCT

DEVELOPMENT

NEEDS IN

MOTOR

INSURANCE

Introduction However, there is one area that IRDA really needs to think
about. Dismantling of the TAC (Tariff Advisory Committee)
Change is the only thing that is almost always constant.
may have been a hasty move. It should be possible to
Organisations have to keep revamping their business
resurrect TAC by giving it a structure that is more
strategies from time to time to grow their business and
contemporary and fit for purpose. The other area that IRDA
capture a greater share of their market. Adaptability to
needs to focus on is to overcome the avarice that dogs the
change and flexibility to change the operational model in
health and motor insurance sector due to the insatiable
response to market needs is a great strength. The insurance
greed of the stakeholders concerned. In this article, I shall
sector is no exception to this rule. In the last few years, the
focus on Motor Insurance alone but this does not mean that
insurance sector has witnessed a lot of positive changes.
fraudulent health insurance claims are any less in number
The private non-life players have proved to be a threat to
than that in motor insurance.
the national insurance companies as they are far too
aggressive in winning orders and writing risks. Price cutting
by the private companies has proved to be a major hurdle Motor Insurance and Unethical
for national non-life insurers. IRDA has also played an practices/behaviours
effective role as the regulatory authority.
There is one illness for which no medicine can ever be
discovered. This illness is called unethical behaviour. This sort
About the author of behaviour is most common in Motor Insurance apart from
Health Insurance. All the basic principles of insurance like -
Venkatesh Ganapathy "Uberrima Fides"(Utmost Good Faith), " Principle of
Presidency Business School Indemnity", "Principle of Insurable Interest" etc are
Bangalore relegated to the side lines with impunity. It is really a sorry
state of affairs if one looks at the manner in which the

22 The Insurance Times, November 2020