Irda sets up panel for insurance pool of commercial vehicles

NEW DELHI: Insurance regulator Irda today set up a 5-member committee to oversee the functioning of a pool proposed for third party insurance of commercial vehicles, which have been declined cover due to their high risk profile.

Commercial vehicles denied insurance cover will come under the declined pool, where liabilities will be shared by all general insurance companies.

"In order to ensure that the setting up of a declined risk insurance pool and matters connected to its operations, the Authority constitutes the Operational Committee...to oversee a smooth transition to the new system...," the Insurance Regulatory and Development (Irda) said.

While dismantling the common pool used by insurers to settle accident claims, the regulator had said that an Indian Third Party Motor Declined Risk Insurance Pool for commercial vehicles will come in existence from April 1.

The declined risk pool for commercial vehicles is being created to ensure equitable and fair sharing by all insurers and also to bring in efficiency in claim management.

Irda's Head of Department (non-life) is the Member Convenor of the committee. Other members are Head of Department (Actuarial), Representative from Pool Administrator, Anurag Rastogi (from Bajaj Allianz General Insurance) and I Victor Amaldas (New India Assurance).

The committee will have a term of two years. The pool will apply to commercial vehicles for standalone third party liability insurance and not for other insurance claims.

Third-party insurance cover protects the vehicle owner from any financial liability in case of damage to life or property in an accident to the third person.