Third Party Motor Pool Unlikely To Be Reintroduced

On March 24, 2014

Last week finance ministry came out with an order canceling the Insurance Regulatory and Development Authority’s (IRDA) 2011 order to withdraw third party motor insurance pool has created jitters and confusion among general insurers. General insurers are not ready to go back to pooling system which saw them bleed for several…

Size of ‘Declined Risk Pool’ Shrunk to Mere Rs 175 crores

On April 29, 2013

Shedding their earlier reluctance, general insurance companies are now providing cover for commercial vehicles in a bigger way. This is seen from the size of the ‘declined risk pool’, which has shrunk to Rs 175 crores from Rs 3,500 crores a year ago. The declined risk pool is a mechanism…

Severe Penal Action for Refusal of Third-Party Motor Insurance: IRDA

On October 4, 2012

Insurance Regulatory and Development Authority (IRDA) has said that severe penal action will be taken against those general insurance companies refusing third party motor insurance. Those Insurance companies which do not abide by the rules, such companies will be visited by very severe penalties which will be more onerous than…

PSU General Insurers Likely to Hike Motor Insurance Premiums by 40%

On August 3, 2012

The finance ministry has asked state-run general insurers to device new marketing strategies and raise premiums to minimize their third-party motor insurance losses. This move will result in increase in motor insurance cost. The re-pricing is expected to increase premiums at least by 30-40%. During 2011-12 total losses of PSU…

Discounts on Own-Damage Covers Lowered by 20%

On May 31, 2012

General insurance companies have lowered the discount by up to 20% on commercial and private own-damage motor policies, as third-party motor risk moves to declined pool. Insurance Regulatory and Development Authority (IRDA) recently scrapped third party motor pool and replaced it with declined pool. It will have lower industry contribution…

ICICI Lombard’s Premium Collection Increased by 22% in 2011-12

On May 2, 2012

Private insurer ICICI Lombard General Insurance has reported 22% growth in total premium collection at Rs 5,358 crore for 2011-12. Company’s Gross Written Premium (GWP) stood at Rs 4,408 crore in FY’11. Number of policies issued increased by 34% at 76 lakh for FY’12 as against 56 lakh in FY’11….

Premium Rates for Commercial Vehicles Likely to Rise from April

On March 26, 2012

Insurance premium rates for commercial vehicles are expected to be increased by up to 50% from first April 2012. These risks are considered as bad risk in general insurance industry because of higher number of accidents and claims arising out of them.   General insurers are planning to increase premium…

Bharti Axa General Eyeing 45% Growth in Next Fiscal

On March 26, 2012

Private sector insurer Bharti Axa general insurance company is expecting to post growth of 45% in gross premium collection in next financial year.   As per the company this growth will be driven by the introduction of declined risk pool system and expected hike in the premium rates in commercial…

IRDA Relaxed Solvency Norms for General Insurers

On March 24, 2012

As general insurance industry is facing a hit of Rs 10,000 crore on its bottom line due to third party motor pool losses, Insurance Regulatory and Development Authority (IRDA) have given them some relief.   Companies will be allowed to provide their losses in three trenches by 30 June 2014….

Govt. may infuse Rs 1,000 crore in two PSU general insurers to protect their solvency

On January 31, 2012

Government may have to infuse Rs 1,000 crore in two public sector general insurance companies Oriental insurance and National insurance to protect their solvency margins requirement by March.   Of four PSU general insurers Oriental insurance and National insurance may face solvency constraint due to increased provisioning for third party…