IRDA cuts admn fee for GIC under motor third-party ins pool

MUMBAI: Insurance regulator, IRDA, on Tuesday reduced the administration fee to be paid to General Insurance Corporation of India (GIC) from 2.5 per cent to 1.25 per cent of the total premium on motor third party insurance business.

This will be with effect from April 1, 2009, IRDA said in a statement.

"The fee payable to GIC shall be 1.25 per cent of the total premium on motor third party insurance business in respect of the business underwritten for the pooled account," Insurance Regulatory and Development Authority, said.

IRDA in 2006, directed that all the general insurers registered to carry on general insurance business (including motor insurance business) or general reinsurance business shall collectively participate in a pooling arrangement to share in all motor third party insurance business underwritten by any of the registered general insurers.

IRDA appointed GIC as the administrator of the pooling arrangement and said that the GIC would be paid a fee of 2.5 per cent of the total premium on motor third party insurance business.