Insurance companies will be freed from administered tariffs regime, as a new dispensation will be in place later this week. | |
| "The decision was getting delayed as the detariffing of motor insurance has to be done for both owners' damage and third-party liability. The details of the detariffication will be placed on the regulator's website during this week," C S Rao, chairman, Insurance Regulatory Development Authority (Irda) said today at the opening ceremony of the 19th FAIR Conference 2005 "Insurance and Reinsurance Scenario - Future Outlook" . |
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| "The decision cannot be taken in isolation," he added. The general insurance industry had been demanding removal of administered tariff saying that the current pricing made the business unviable. |
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| While insurance players claim they can design better products if the tariff regime is removed, the road transport industry is concerned that detariffing will lead to an increase in the premium cost and, thus, make road transport costly. |
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| "We had readied a roadmap for detariffing," he added. Insurance premium on any product till date was decided by the TAC with detariffing, the companies would be free to fix premium for their insurance policies. |
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