IRDA has issued orders for dismantling of the existing Indian Motor Third Party Pool with affect from 31.3.2012.
The salient provisions of IRDA order is as below
- This dismantling of motor third party pool shall be done on clean cut basis
- Pool shall not be subject to run off
- The general insurers who have issued the policy shall also be responsible for servicing them and settling the claims as and when they arise.
- The total liabilities of the motor third party insurance policy shall be calculated as ordered by the authority separately
- These liabilities shall also be signed off by all the general insurers
- Based on actuarial calculations each general insurers and submit the details of the calculations to the pool administrator who sell verify the same
- The pool administrator after verifying shall allocate the amount to be transferred by one insurer to the other insurers the net balances after due process of reconciliation
- Following such an agreement itself the responsibility of the insurer to service and settle the claims under the motor third party insurance policy to the satisfaction of the claimant
- The process of clean cut transfer shall be overseen by a IRDA committee
- The pool administrator shall get the third party pool accounts of the members of the Indian motor third party insurance pool audited by a chartered accountant firm approved by the authority expeditiously the not later than 30.06.2012.
Download the IRDA announcement about dismantling of the pool
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