INFRASTRUCTURE EXPENSES An unrealistic expense of Motor Dealers paid by General Insurance Companies

K. Arivalagan

Volume : V, Issue : I, January - 2016

INFRASTRUCTURE EXPENSES An unrealistic expense of Motor Dealers paid by General Insurance Companies

K. Arivalagan

Abstract :

<p>&nbsp;Motor Insurance in India was detariffing from 1.4.2007. Motor liability insurance premium being revised every year based on ICR whereas own damage premium not revised till. Now the insurance companies entered into MOU with motor dealer/manufacturer to procure motor premium. Insurers are paying infra expenses to the dealers. Actually the insurers worked out the infra expenses based on outgo which includes detariff discount &amp; infra expenses. The dealers never offer discount on the tariff instead the claim full outgo from the insurers. This is clear cut cheating of premium paid by the insured. The regulator who has to regulate the unhealthy practice followed by the insurer / motor dealer has become the mute spectator in this issue. The article will gives the detailed input on motor insurance, premium calculation, how it has become the dealer centric &amp; infra expenses are misused by the dealer, regulators inaction and remedy/solution to stop this unethical practice by the motor dealer/manufacturer.</p>