Page 299 - Reinsurance Management IC85

The Insurance Times

may be generated which may help the insurers to
have a reliable estimate based on which they can
plan their future strategies.

In India the motor third party insurance is compulsory
and no insurers can deny granting cover under third-
party. But the loss ratio is very high more than 300%
in the segment. There would also be a problem in
getting reinsurance cover as this is a complete loss-
making portfolio. In such a scenario that third party
motor pool was formed in India where in all insurers
contributed premium according to their share of the
business. Any claim under third-party was paid out
of this pool. Recently this pool has been dismantled
and the separate arrangement has been made.

Also if the experience of the pool is good the
premium is retained within the country and any
profit from the pool may be divided between the
insurance companies.

Therefore pools are an effective way to provide
cover for risks for which sufficient data is not

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 296

ight@ The Insurance Times. 09883398055 / 0988338