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Our Bureau

Chennai, Sept 3 The Insurance Regulatory and Development Authority (IRDA) has an “open mind” on when the residual restrictions on tariffs should go, the Chairman, Mr C.S. Rao, said today.

From January, insurance tariffs have been decontrolled but there is still a restriction that no insurance company may bring down its tariff below 51.25 per cent of the levels under control-regime. Even this restriction will go, but IRDA wants the transition from administered pricing to market pricing to be smooth.

“So far it (de-tariffing) has been smooth. We don’t want to do anything to upset the market,” Mr Rao told journalists on the sidelines of a conference of the Insurance Brokers Association of India, here today.

He said the insurance companies must provide the Authority details relating to pricing of policies in the fully de-tariffed regime.

The Authority was working on regulations for standalone health insurance companies. Apart from solvency, the new regulations would govern investments by these companies, he said.

Meanwhile, it is learnt that IRDA has asked the National Insurance Company not to go ahead with the proposed ‘title insurance’ policy, which would cover property buyers against the risks of faulty title.

Sources told Business Line that the Authority wrote to the insurance company on the 30th day of filing the policy — the last day of the waiting period under the ‘file and use’ method of granting approvals — a sking the company not to launch the policy. The Authority said that it would convey its objections later.

Confirming this , Mr Rao said that ‘title insurance’ was a new product in the country and was fraught with risks because of inadequate land records.

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