In a notification dated December 1, 1998, controller of insurance N Rangachary has inducted seven members from outside the general insurance industry onto the committee.

The members outside the general insurance industry include the joint secretary (insurance), the joint secretary, ministry of surface transport, a member from the Bureau of Industrial Costs & Pricing (BICP) and one representative each from the state governments of Bihar and Tamil Nadu.

Former Confederation of Indian Industry (CII) president Subodh Bhargava and Chennai-based chartered accountant and former president of the Institute of Chartered Accountants of India Ashok Kumbhat will also be a part of the advisory committee.

The committee members will serve three-year terms except theCII representative Subodh Bhargava. The representative will alternate between the CII, the Federation of Indian Chambers of Commerce and Industry (Ficci) and the Associated Chambers of Commerce and Industry (Assocham) on an annual basis.

Other committee members, apart from the chairman, include the General Insurance Corporation (GIC) chairman, the two GIC managing directors, and the chairmen of New India Assurance, United India Insurance, Oriental Insurance and National Insurance.

On July 22, 1998, the committee chairmanship was taken over by Rangachary. Prior to this, the post was held by the GIC chairman.

The advisory committee, a statutory autonomous body under the Insurance Act, 1938, formulates and administers the tariff for major classes of general insurance business like fire & allied perils, petrochemicals, marine hull, engineering and motor insurance. The tariff encompasses rates, terms and conditions of general insurance business and provides for taking into account individual features oflarger industrial units while evaluating and rating them.

The tariff system has an in-built mechanism for taking into account the individual features of larger risks while evaluating and rating them. Individual features which are taken into consideration include past claims experience and types of fire protection systems provided. TAC operates a number of special rating and discount schemes for providing the benefit of lower premium rates to larger risks which confirm to its safety standards.