General insurers told to restrict motor tariff discount at 20%

FE reports

In a further twist to tale in the detariffing drama in the domestic general insurance industry Insurance Regulatory & Development Authority(Irda) has asked the general insurers not to reduce premium beyond 20 % for motor (own damage) portfolio for next six months.

The regulator while approving the new rates of the general insurers for the detariffing period starting from January 1 has directed the general insurers to seek special permission from the regulator if the rate of discount is more than 20 %.

``The insurers have to justify their demands by giving supporting data for giving a higher discount,’’ said the Irda note to insurers.