The Hindu Business Line : Standard wordings for policies released

Hyderabad, Nov. 12 The General Insurance Council (GIC) has released the guidelines for developing standard market wordings for Fire, Engineering and Motor portfolios to be followed by insurers in the tariff-free regime.

The objective of the guidelines is to ensure smooth transition of the market from tariff to tariff-free regime, assurance of minimum standards to buyers of insurance, clarity of policy terms and conditions and avoidance of differing interpretations and bringing in best global practices.

“The standard market wordings for fire insurance, engineering insurance and motor insurance policies have been created without restricting the prerogative of insurers to create their own products. Accordingly, the wordings have been developed as base level with scope for customisation through endorsements for addition/deletion of covers. Key words in the insurance contract have also been defined,” the council said in a notification posted on its Web site.

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The standard wordings proposed for the above classes of insurance by the council are available for perusal on their Web site www.generalinsurancecouncil.org.in.

Suggestions/comments from various stakeholders and public may be sent to the General Insurance Council directly with a copy to Insurance Regulatory and Development Authority (IRDA), according to Mr C.S. Rao, Chairman, IRDA.