17^th May, 2002

IRDA/RCS/MTP/10/02

TO ALL GENERAL INSURERS

ORDER

Re : Ceiling on Loading of Premium and acceptance of Exclusive Third Party Motor Proposals

This is further to the Authority’s Order No. IRDA/ORDER/TAC/04/2002 dated 25^th April, 2002 regarding rationalization of tariff in Motor Insurance.

It is now clarified that insurers may load the Third Party Tariff Motor premium by 100% if the claim experience of any individual owner is adverse as per the insurers’ assessment.  If the experience continues to be bad, then a further loading of 100% on the expiring premium can be charged.   Insurers may not load the premium further.  This order issues Under Section 64 UC of the Insurance Act, 1938.

The Authority has been receiving enquiries with regard to acceptance of exclusive Third Party Motor Proposals.  It is to be communicated hereby that exclusive Motor Third Party insurance is a compulsory cover and that no insurer can refuse to provide this cover.

(N. RANGACHARY)

CHAIRMAN