Irda plans new motor risk scheme

Insurance Regulatory and Development Authority (Irda) is mulling a scheme or an "insurance pool" to cover automobiles that insurers are reluctant to cover, its head said Wednesday.

"Any vehicle which two or three insurers have declined to underwrite could be covered from this pool," said C S Rao on the sidelines of a conference on the insurance sector here.

All insurance companies would contribute to this pool, he said. Deregulation of tariffs in motor insurance would happen as scheduled on January 1, 2007, when deregulation of other general insurance sectors is due.

The regulator will shortly submit its report on the changes in insurance law based on recommendations of the Law Commission and the K P Narasimhan committee. The report will cover investment norms for insurance companies and entry rules for insurers in the health sector.