IRDA NEWS: IRDA dismantles Motor Third Party Pool

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.