Public insurer New India Assurance is awaiting a “final decision” from the Insurance Regulator Development Authority (Irda) on third-party motor insurance segment to curb mounting losses from the segment.
“We are awaiting final decision from the (insurance) regulator (on this matter)...,” New India Assurance Chairman and Managing Director G Srinivasan told reporters here. He was responding to a query on the steps taken by his company in the wake of mounting losses in the third-party motor insurance segment coupled with commercial vehicle industry which has been on downtrend.”What we are looking at is break-even,” he said.
Earlier this year, Irda released an exposure draft in which it proposed for an increase in premium for third-party motor cover for 2014-15.As per the draft, the regulator looks for an increase of 25-137 per cent rise to attain breakeven in this segment.