Tariff Control Regime To Come To End In & #8217;05: Rangachary

Insurance Regulatory and Development Authority (IRDA) chairman N Rangachary said here today that the regulator would do away with the present tariff regime in 2005. The freeing of rates is expected to trigger a fierce rate war among the players and usher in real liberalisation in the industry.

At present, insurance players are not allowed to price their products below the floor fixed by the Tariff Advisory Committee (TAC). Around 75 per cent of total insurance business is tariff driven.

Rangachary was speaking at a insurance seminar, organised by the Narsee Monjee Institute of Management Studies, on the need for risk management.

He said the TAC would be repositioned to become a statistical organisation. Every insurer