The Hindu Business Line : `Motor insurance detariffing unlikely soon'

THE Insurance Regulatory and Development Authority Chairman, Mr C.S. Rao, today said that there might be a delay in detariffing the motor insurance business.

The IRDA had earlier set a deadline of April 2005 to dismantle the tariff regime for the motor insurance. "We are likely to miss the April deadline (for detariffing motor insurance business)," Mr Rao said on the sidelines of the conference of actuaries organised by the Federation of Indian Chambers of Commerce and Industry.

Mr Rao said the IRDA planned to take up detariffing in both owners' damage and third-party liability at one go.

Non-life insurance companies have been seeking detariffing of the motor portfolio since the administered tariff regime is resulting in heavy losses on their motor portfolios. The public sector companies are hit as they are forced to take up a large chunk of this loss-making business.

Earlier at the seminar, Mr Rao said that he expected that the insurance industry would sustain double-digit growth in the coming years. "The increase in the market share of private players reflects the untapped market," he said.

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