Question : THIRD PARTY MOTOR INSURANCE

(a) whether attention of the Government has been drawn to the huge financial losses being faced by the public sector insurance companies due; to non-picking up of loss-making tliird party motor insurance business by private parties;

(b) if so, the details thereof,

(c) whether the Government proposes to increase the premium of motor vehicles insurance for third party risk;

(d) if so, the details thereof; and

(e) the steps taken/ proposed to be taken to ensure compliance of the directives issued by the Government in this regard?

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S. S. PALANIMANICKAM)

(a) & (b) : Yes, Sir. The Government has requested the Insurance Regulatory and Development Authority (IRDA) to look into various options to alleviate losses to the public sector insurance general companies due to under-writing of Third party Motor insurance Business by them,

(c) & (d) : IRDA has drawn up a draft road map for de-tariffing insurance business including motor vehicle insurance w.e.f. 01.01.2007, which may affect the premium rates of the motor vehicle insurance.

(e) : No directive has been issued by the Government in this regard.