CALCUTTA, Jan 3: Motor insurance premium rates for third party claims will roughly double over the next three years from the existing Rs 160. The General Insurance Corporation which has recommended the increase and the Tariff Advisory Committee which will implement it have left the premium for `own damages' in motor insurance untouched following a case filed against TAC in the Calcutta high court by some transporters who would be hit hard by the rise.The case is pending a decision and the government has decided to raise motor insurance premium in phases rather than at one go.
GIC chairman K C Mittal said losses from third party claims in the current fiscal are expected to exceed last year's Rs 1,200 crore. He was here on Saturday to inaugurate the customer service facility of National Insurance Company which is a GIC subsidiary. Outgo from third party claims are responsible for most of the losses in the insurance sector, he said.
Referring to Mediclaim which is GIC's medical insurance cover, Mittal
denied that the scheme was incurring losses. "It is breaking even," he said. One of its major drawbacks was that it had resulted in a nexus between development officers of the company and local doctors in a city leading to many bogus claims.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
