The Hindu Business Line : Fire tariff circular challenged

ALEGION Insurance Services Ltd, a Chennai-based insurance broking firm, has filed a writ petition against the Tariff Advisory Committee, challenging the `fire tariff circular' issued by the committee recently on the grounds that the "fixation of tariff is discriminatory."

The Tariff Advisory Committee, part of the Insurance Regulatory and Development Authority (IRDA), issued on March 31 a circular announcing reduction of fire insurance tariff for BPOs, call centres and data processing centres to 50 paise per thousand of sum insured, from Rs 1.25 earlier.

No change in fire tariff was made in respect of software parks. "In other words, there is a discrimination amongst the same class of business despite the fact that there is no change of circumstances or alteration in the nature of the business," said the writ petition, which was admitted by the Madras High Court recently.

"The decision of the committee in fixing different tariffs for the same class of business is arbitrary and without having any nexus with the objective sought to be achieved," it said.

The petition requests for stay of the `Revised Tariff Circular' issued by the committee.

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