Indian Foundation of Transport Research and Training has demanded freeing of the third party motor insurance premium rates to make claims fair
Indian Foundation of Transport Research and Training (IFTRT) has demanded freeing of the third party motor insurance premium rates to make claims fair.
Though regulation of the tariffs in the non-life sector was withdrawn in 2007, third-party motor insurance continues to be regulated.
"There is a need to abolish the Third Part Motor Insurance Loss Poll Account and while putting the ceiling on maximum claim to the accident victim, de-tariff the third party motor insurance to bring free play of market forces," IFTRT said in a statement.
The Insurance Regulatory and Development Authority (IRDA) has proposed to increase provisioning requirement for insurers providing motor insurance covers.
IRDA had increased the provisions made for motor pool to 153% of book value for the four years till 31 March 2010, against 126% currently maintained by insurance companies.
This is aimed at enhancing solvency margins and make higher provisioning for third-party motor pool.
The IFTRT said the IRDA should bring in structural changes in the rules and regulations for filing the third party claims and settlement of claims.
It also asked the authority to consider fixing a ceiling on the claim awards by motor insurance tribunals.
With effect from 25th April, the IRDA has hiked the third-party motor insurance premiums by 10% for private cars and two-wheelers and 68% for goods and passenger vehicles.
The third party motor insurance segment is marked by unlimited liability and numerous instances of inflated and fraudulent claims.
SBI Life Insurance reported a 33% growth in net profit at Rs366 crore for the financial year ended March 2011 on the back of increase in renewal premium income
Leading private sector insurer SBI Life Insurance reported a 33% growth in net profit at Rs366 crore for the financial year ended March 2011 on the back of increase in renewal premium income.
"We continue to be profitable from operations side as we keep our expenses low. Bancassurance (bank channels) and agency force is helping us to sustain profits," SBI Life Insurance managing director MN Rao told PTI.
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance. SBI owns 74% of the total capital in the JV and BNP Paribas Assurance holds the remaining 26%.
Tata AIG’s premium collection gained 34.64 % to Rs116.88 crore in March 2011, from Rs86.81 crore in March 2010
Tata AIG's premium collection gained 34.64 % to Rs116.88 crore in March 2011, from Rs86.81 crore in March 2010. The premium collection of Tata AIG increased to Rs108.79 crore in January 2011 from Rs87.19 crore in November 2010, then it declined in February 2011 to Rs91.81 crore but has again climbed up in March 2011.
During the year April-March 2011, Tata AIG reported premium collection of Rs1,214.01 crore up by 34.80% from Rs900.58 crore in the corresponding period last year.
Tata AIG in March 2011, gained a market share of 2.51% in the total premium collection of the non-life insurance sector.
During the April-March 2011, the gross premium collection of 15 private non-life insurance companies and the four public companies increased by 22% and 21%, respectively against the corresponding period last year.