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C. Shivkumar

Bangalore , Oct. 14

THE Tariff Advisory Committee (TAC) of the Insurance Regulatory and Development Authority has no one at the helm after the shifting of its Secretary.

TAC is the tariff-fixing arm of the insurance regulator. The TAC's Secretary, Mr K. K. Srinivasan, has become Member, Non-life, of IRDA with effect from September this year.

Sources said normally the TAC is headed by an officer equivalent to the rank of a General Manager. However, no one has so far been posted to the slot. TAC is currently headed by an officer of the rank of an Assistant General Manager.

The sources said there was no downgrade of the TAC, but was instead a prelude to the sweeping reforms proposed for the domestic insurance industry after the amendments to the Insurance Act. The amendments propose changes in the functioning of the TAC with effect from next financial year. The proposal envisages TAC's transformation into a Technical Advisory Committee. Only the abbreviations would remain unchanged. The functions, however, would be completely different.

The TAC in its present form fixes tariffs for various risk products by the non-life insurance companies. The general insurance industry is expected to conform to these norms in pricing risk covers.

This would imply that the TAC in its new incarnation would only recommend tariffs/premiums for various risk products. While the recommendations would not be binding, they are expected to function as a floor.

The sources said suitable amendments to the Insurance Act of 1938 were being pushed forward for changing TAC's nomenclature and functioning.

The amendments were originally expected to be tabled during the monsoon session of Parliament. But they are now likely to be made only during the winter session, the sources added.

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