CABINET OKAYS INSURANCE BILL
Article Abstract:
The Cabinet of the Government of India has accepted the Insurance Regulatory Bill recommended by the standing committee. The bill proposes to open up insurance sector to private players. The foreign equity component will be limited to 26 percent. The Government has scrapped the provision for an additional 14 percent stake for non-resident Indians and overseas corporate bodies provided earlier. The new bill has a provision for divesting the excess share capital by promoters, who hold more than 26 percent in phases within ten years. The bill, however, allows the private companies to participate in only one business - life, general or reinsurance. The minimum share capital has been fixed at Rs200 crore and the registration fees Rs50,000. The renewal fees has been fixed at one-fourth of the one percent of gross premium income of the insurer subject to a maximum of Rs5 crore and minimum of Rs50,000. (um)(psr)
Comment:
The Cabinet of the Government of India has accepted the Insurance Regulatory Bill recommended by the standing committee.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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TAC REVAMPS MOTOR VEHICLE INSURANCE
Article Abstract:
The Tariff Advisory Committee (TAC) has decided to revamp the motor insurance cover for cars and motorcycles in order to make the general insurance industry more customer-friendly. The Committee has drawn up a comprehensive insurance cover to ensure that claimants for damage get full settlement without any deduction for depreciation. With the 10 percent hike in premium, the insurance companies with good track record will benefit as the no-claim bonus limit has gone up to 65 percent of the total premium for cars and 55 percent for two-wheelers and commercial vehicles. The insured will be rewarded with a five percent discount every year under the no-claim bonus clause if there is no claim. (gsh)
Comment:
India: Tariff Advisory Committee to revamp motor insurance coverage for cars and motorcycles
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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TAC NOT TO HIKE MOTOR PREMIA
Article Abstract:
The Tariff Advisory Committee (TAC) of the Government of India has decided not to increase motor insurance premia from February 1999. In 1997, it had announced increasing the motor insurance premia - by 490 percent for trucks and by 224 percent for small cars - over 2-3 years. The decision will benefit the transporters. The general insurance companies are worried since they may fall short of their business targets. The claims paid by the insurance companies are higher than the premia collected. (um)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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