Pvt Players Will Be Given Some Quota On 3rd Party Motor Cover

Mounting third-party claims in the motor business of insurance companies and losses being borne by the public sector alone, is forcing the central government to relook at the situation.

The central government has issued notices to all insurance companies to settle all fresh claims within one month.

The Centre intends to force private insurance companies to take a share of this loss-making portfolio.

This was stated by Anand Rao V Adsul, minister of state finance (expenditure, banking and insurance), in Mumbai on Sunday.

The Centre is also considering a hike in insurance premium on third-party motor insurance, as well as ensuring that some quota of the business is given to the private players, said Adsul.

 

The minister added that with lakh of claims pending for years, the government proposes to frame new rules and regulations.