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C.R. Sukumar

Hyderabad , March 28

THE Insurance Regulatory and Development Authority (IRDA) has decided to de-tariff marine hull insurance and underwriting ofwar risk insurance for marine hulls from April 1.

Accordingly, the insurance regulator has announced new guidelines for conducting both the businesses. The move follows the directives of the Ministry of Finance and Tariff Advisory Committee's recent recommendations.

IRDA has advised all general insurers, who wish to write marine hull class of business which would go out of the tariff from April 1, to follow the existing policy wordings, terms and conditions including Institute clauses till further orders.

The regulator said the terms and conditions for the war risk insurance policy would be identical to the existing Government of India scheme until further orders. The regulator has asked all such insurers to follow the procedures as contained in IRDA circular dated February 26, 2001 for filing of products. While filing the products, the non-life insurers should indicate the net minimum premium rate for each class of business that the company would offer, which has all possible good features built into it. In no circumstances, the insurers should write the business below such rate.

According Mr Mathew Verghese, IRDA Member, Non-Life, those insurance companies wanting to write marine hull class of business and the war risk insurance for marine hulls should file separately with IRDA the reinsurance arrangements for protecting the net account exposures. They were asked to ensure that the proposed arrangements terminate on March 31 next year. IRDA has also asked the insurers to file separately monthly business figures for marine hull including war risk insurance as is being done under the marine hull class of business.

As regards the limits of obligatory cessions and commission from national re-insurer for obligatory cessions for marine hull business and for war risk insurance for marine hulls, the regulator said the terms as per its circular dated February 23 this year would be applicable.

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