The Irda move has come at a time when the general insurance segment is still finding it tough to manage their operations in view of the losses in the third party liability. “The insurance industry is still losing money in the third party business. I am expecting another hike in third party premium,” said Bhargav Das Gupta, MD & CEO of ICICI Lombard General Insurance.
* Irda has expressed concern over insurers paying out huge incentives to auto dealers as it is making motor policies expensive for consumers
* The regulator wants this practice to be stopped and is asking insurers to pass on these benefits in the form of lower prices on policies
* There are two types of motor insurance policies: the third party, whose price is regulated by Irda and the ‘own damage segment’ where insurers are free to price
* The ‘own damage segment’ has seen various schemes offered by dealers and insurers that have hidden charges built into them