The Insurance Regulatory and Development Authority of India (Irdai) has constituted a working committee for reviewing the current motor third party obligation regulations for insurers and make recommendations to modify the current framework.
In June 2015, the insurance regulator had specified a formula for calculating motor third party obligations for insurers. But, after the apex court decision on issuance of long term motor third party policies as well as concerns raised by various insurers on the formula used for calculation of motor third party obligations, the insurance regulator felt that a review of the whole process is required.
According to the insurance act, every general insurer has to underwrite a minimum percentage of insurance business in third party risks of motor vehicles.
The committee constituted by the IRDAI will be headed by J Anita, General Manager, Irdai and other members of the committee include Basudev Sanyal, Chief Manager, United India Insurance, K B Mehra, Chief Manager, National Insurance, Loknath Kar from ICICI Lombard and others. A Srihari, IRDAI non-life member is also a part of the committee.
The committee has been asked to submit its report within three months.