Tac Adopts Carrot-Stick Line For Fire, Engg Covers

The tariff advisory committee (TAC), a division of the Insurance Regulatory and Development Authority, plans to offer incentives in terms of discounts on premium for fire and engineering covers to corporates that adopt proper loss-prevention measures.

The extent of downward revision in tariffs will depend on individual establishments incorporating proper safety measures against fire and other perils.

TAC controls and regulates the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business relating to fire, marine (hull), motor, engineering. and workmen compensation.

The TAC in its draft tariff revision proposal has introduced a carrot-and-stick approach.

 

Companies, which have installed fire-fighting equipment or properly designed plants meeting high safety standards, can avail of discounts