The tariff advisory committee on general insurance has accepted the recommendations of the expert panel on motor insurance headed by former Insurance Regulatory and Development Authority member H Ansari. This paves the way for the introduction of the new motor insurance policy on April 1. The policy is expected to help general insurers in cutting down their annual losses in underwriting the cover from the present level of over Rs 4,500 crore.
When contacted, K N Bhandari, chairman and managing director, New India Assurance and president of General Insurance (public sector) Association, confirmed the development and said with this the tariff on motor insurance would rise from the present 3 per cent of the value of a vehicle to around 3.6 per cent.
