DearViewers,
Insurance companies have been knocking on the doors of the regulator for scrapping the third party motor pool, which was set-up by all general insurers in India to collectively service commercial vehicle third party insurance business. J Hari Narayan, IRDA Chairman said that the industry has been demanding it for some time.
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Private insurance companies have been opposing the pool and allege that they are being forced to contribute disproportionately to the corpus.
Motor pool has been operational since 1st April 2007, and includes each and every insurer who is registered for carrying on general insurance business (including motor insurance business) under the Insurance Act, 1938. Standalone health insurance companies like Apollo Munich Health, Star Health and Max Bupa are exempted from it. General Insurance Council (GIC) acts as the administrator of the pool.
Public sector insurers like New India Assurance, United India Insurance, National Insurance and Oriental Insurance insure nearly 60 per cent or more of the markets.
Ritesh Kumar, Managing Director and CEO of HDFC Ergo General Insurance Company said that there are issues relating to third party motor pool, which is a concern for all general life insurance companies.
“Fundamentally, we want the pool to be dismantled. It is not benefiting anyone and pricing has to be corrected,” he added.
Earlier this year, IRDA allowed insurance companies to increase the premiums on motor insurance. The hike was in the range of 10 to 65 per cent for all class of vehicles including private cars, two-wheelers, three-wheelers, commercial vehicles, goods carrying vehicles etc.
According to ASSOCHAM, motor insurance will continue to remain the largest category, contributing over 40 per cent of industry premiums.
Since this is an important issue, top executives, including HDFC chairman Deepak Parekh, ICICI Bank MD Chanda Kochhar, AIG country head & CEO Sunil Mehta and G Srinivasan CMD of New India Assurance as well as United India Insurance met the regulator last week to lobby for scrapping the third party motor pool.
Insurance companies have been knocking on the doors of the regulator for scrapping the third party motor pool, which was set-up by all general insurers in India to collectively service commercial vehicle third party insurance business. J Hari Narayan, IRDA Chairman said that the industry has been demanding it for some time.
.
Private insurance companies have been opposing the pool and allege that they are being forced to contribute disproportionately to the corpus.
Motor pool has been operational since 1st April 2007, and includes each and every insurer who is registered for carrying on general insurance business (including motor insurance business) under the Insurance Act, 1938. Standalone health insurance companies like Apollo Munich Health, Star Health and Max Bupa are exempted from it. General Insurance Council (GIC) acts as the administrator of the pool.
Public sector insurers like New India Assurance, United India Insurance, National Insurance and Oriental Insurance insure nearly 60 per cent or more of the markets.
Ritesh Kumar, Managing Director and CEO of HDFC Ergo General Insurance Company said that there are issues relating to third party motor pool, which is a concern for all general life insurance companies.
“Fundamentally, we want the pool to be dismantled. It is not benefiting anyone and pricing has to be corrected,” he added.
Earlier this year, IRDA allowed insurance companies to increase the premiums on motor insurance. The hike was in the range of 10 to 65 per cent for all class of vehicles including private cars, two-wheelers, three-wheelers, commercial vehicles, goods carrying vehicles etc.
According to ASSOCHAM, motor insurance will continue to remain the largest category, contributing over 40 per cent of industry premiums.
Since this is an important issue, top executives, including HDFC chairman Deepak Parekh, ICICI Bank MD Chanda Kochhar, AIG country head & CEO Sunil Mehta and G Srinivasan CMD of New India Assurance as well as United India Insurance met the regulator last week to lobby for scrapping the third party motor pool.
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