Insurance companies would have to wait a little longer before motor vehicle insurance business is freed from administered tariffs. |
"We are likely to miss the April deadline," CS Rao, chairman, Insurance Regulatory Development Authority (Irda) said today adding that the decision is getting delayed as the detariffing of motor insurance has to be done for both owners' damage and the third party liability. |
"The decision cannot be taken in isolation," he added. The general insurance industry had been demanding removal of administered tariff on the motor insurance business saying that the current pricing made the business unviable. |
While the insurance players claim they can design better products if tariff regime is removed, the road transport industry is concerned that detariffing will lead to an increase in the premium cost and thus make road transport costly. |
On the move to discipline hospitals on billing related so that inflated claims are not made, Rao told Business Standard, 'We are closely working with the health ministry but as we do not regulate hospitals we are facilitating coding of charges so that the third party administrators are able to process the claims quickly. |