The Hindu Business Line : Tougher norms to check breach of tariffs

THE Tariff Advisory Committee (TAC) a statutory body for the insurance business, has come out with new, stricter norms for dealing with unhealthy practices.

According to a communique from the Insurance Regulatory and Development Authority (IRDA), the new norms were formulated by the TAC board at its meeting held on February 16.

Aimed at curbing breaches of tariff in the market by the general insurance companies, the norms envisage a time-bound disposal of breach of tariff (BOT) complaints by the BOT Committee of the TAC.

IRDA said that if the BOT Committee of TAC decides that there is a breach, the insurer would have to collect the shortfall in premium and rectify the policy.

The alternative would be to cancel the policy legally and adjust the shortfall against the refund. The insurer will have to take either one of these actions within 30 days from the TAC's communication.

The insurer would be required to place the breach of tariff matter before its board and send the confirmation of action to the TAC within 15 days from the board meeting along with a certified copy of the minutes.

The TAC would then have to bring to the attention of IRDA the matter of repeated breaches of tariff that were committed by insurers, the IRDA communiqué said.

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