Question : MOTOR INSURANCE CLAIM

(a) whether the General Insurance Companies incurred losses in underwriting business relating to motor insurance for the year ended 31, March 2000;

(b) if so, the quantum to total income from motor vehicle insurance for the year and total expenditure including net claims paid;

(c) whether the total premia collected was 65 percent of the total expenditure;

(d) whether a lot of false claims are being settled due to connivance among the claimants, agents and GIC officials; and

(e) if so, the steps being taken to exercise greater control over expenditure to generate a reasonable surplus?

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)

(a) to (c): The public sector general insurance companies have incurred losses in underwriting business relating to motor insurance for the year ended 31.3.2000. The details are given below:

(i)	Total premium income from Motor Insurance	:	Rs.3417.44 Cr.

(ii)	Total Expenditure on Motor claims	:	Rs.4888.13 Cr

(iii)	Under writing losses on Motor business	:	Rs.1470.69 Cr.

(i)	Utilizing `in-house` loss assessors for smal;l claims;

(ii)	Close coordination with Legal Aid and Advisory Board for settlement of cases through	Lok Adalat, out of Court conciliation etc. to enable quick settlement of claims.

(iii)	Periodical appraisal of the performance of advocates;

(iv)	Investigation in Third Party Claims to ascertain authenticity of accidents and	collection of details effective handling of the cases.