MOTOR CIRCULARS FOR YEAR 2003

 

SR.NO.	CIRCULAR NO.	DATE OF CIRCULAR	EFFECTIVE DATE	SUBJECT
1	IMT/01/2003	13/03/03	13/03/03	Discount for Vintage Cars
2	IMT/02/2003	25/04/03	25/04/03	Special Rating - Motor Trade Policies under Section- 4 (Class E) of Revised India Motor Tariff effective from 1.7.2002.
3	IMT/03/2003	9/05/03	9/05/03	Revised India Motor Tariff effective from 1-7-2002
4	IMT/04/2003	20/06/03	01/07/03	Checklist for loading Liability Only premium under GR.3B of India Motor Tariff effective from 1.7.02
5	IMT/05/2003	07/08/03	07/08/03	India Motor Tariff - Statistical Codes
6	IMT/06/2003	21/08/03	21/08/03	Loading under GR. 3B of India Motor Tariff
7	IMT/07/2003	24/10/03	01/11/2003	India Motor Tariff effective from 1.7.2002 :Rating of Oil and Petrol Transport vehicles and Tankers Under Miscellaneous and Special types of vehicle (Class D)

Ref.No. IMT/01/2003                                                                  13^th March, 2003

Re: G.R. 29 of IMT - Discount for Vintage Cars

TAC has amended G.R. 29 "Discount for Vintage Cars" (appearing on page 16) of India Motor Tariff.

The amended G.R. 29 is to read as under:-

"G.R. 29 Discount for Vintage Cars

Private cars certified by the Vintage and Classic Car Club of India as Vintage Cars will be eligible for 25% discount on basic Own Damage and/or Third Party Premium.

For mid-term certification as Vintage car, pro-rata proportion of the tariff discount for the unexpired period of the policy is to be allowed.

Endorsement IMT - 9 is to be used."

Arising out of the above amendment, the Premium Computation Table appearing on page number 185 of tariff is to be modified as given in Annexure 1.

Insurers are requested to make a note of the changes and advise operating offices accordingly.

Secretary

Annexure 1.

PREMIUM COMPUTATION TABLE

GO TO INDEX

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Ref.No. IMT/2/2003                                                                                             25^th April, 2003.

Re: Special Rating - Motor Trade Policies under Section- 4 (Class E) of Revised India Motor Tariff effective from 1.7.2002.

This has reference to existing specially rated risks under Road Transit Risks Section of erstwhile India Motor Tariff in force prior to 1.7.2002. TAC has decided to continue the special rating scheme in respect of such risks for renewals falling on or after 1-7-2002 subject to the following :

1. Only those risks which were enjoying special rating prior to 1.7.2002 will be eligible for special rating. No new risk will be considered for special rating.

2. Only those of the eligible risks which continued their insurance without any break will qualify to be considered for special rating by TAC.

3. The overall claims ratio for the preceding five policy periods excluding the expiring policy period is less than 38%.

4. The maximum discount that may be approved by TAC under the special rating scheme shall not exceed 60%.The discount shall be applied on tariff rates effective from 1-7-2002 .

5. Once the overall claims ratio for the preceding five policy periods excluding the expiring policy period reaches 38% and above the risk loses its eligibility for special rating once for all.

Insurers should submit special rating application ( Annexure A ) complete in all respects alongwith a copy of the letter issued by the concerned Regional Office of the TAC sanctioning the special rates to the TAC Head office, within three months of renewal date of the policy. However, for policies renewed on or after 1-7-2002 till date, application for special rating should be submitted within 3 months of the date hereof, if eligible for special rates as per the provisions of this circular.

Secretary

Annexure A

TARIFF ADVISORY COMMITTEE

MUMBAI

Application for Special Rating under Motor Trade

Section - 4 ( Class E )

1. Insured's Name :

(a) Address :

(b) Occupation :

2. Renewal date :

3. Details of Cover

 

Type of vehicle	Package Policy	Liability only policy	Any other type of cover

4. Maximum distance likely to be :

covered in single transit

5. Claims experience for the preceding five policy period excluding the expiring policy period.

 

Policy Period 1	Total No. of Vehicles declared 2	Premium Charged (in Rs. 000) 3		Incurred claims (in Rs. 000)   4		Incurred Claims ratio(%)   5		Name of Insurer 6
		O.D.	T.P.	O.D.	T.P.	O.D.	T.P.

Overall incurred claims ratio : ------------------

6. Number of vehicles/chassis

a. Unregistered chassis/Body built vehicles

b. Private cars

c. Two wheelers

d. Goods carrying vehicles

e. Passenger carrying vehicles

f. Miscellaneous vehicles

g. Any other type of vehicle

Place:                                     Signature of the Insurer  with address

Date:

GO TO INDEX

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IMT/3/2003                                                                         9^th May, 2003.

Re :- Revised India Motor Tariff effective from 1-7-2002

This refers to our Circular No.IMT/5/2002 dated 28th June, 2002 advising that the Revised India Motor Tariff effective from 1.7.2002 shall not be applicable to insurance of buses owned by bonafide members of Asansol Mini Bus Association until further orders.

In supersession of our above advice and consequent upon the vacation of the stay granted earlier by the Honorable Calcutta High Court restraining to give effect to the revised Motor Insurance Tariff vis-a-vis the Members of the Asansol Mini Bus Association, all the Insurers are hereby advised that the revised India Motor Tariff be applied to Insurance of buses owned by Members of the Asansol Mini Bus Association.

However, it may please be noted that the payment of enhanced Insurance Tariff premium will abide by the final result of the Appeal filed by the aforesaid Association, which is pending for final disposal with the Honorable Division Bench of the Calcutta High Court.

As regards loading of premium, the insurers are to be guided by the directions/norms stipulated by the IRDA/TAC.

Secretary

GO TO INDEX

Ref. No. IMT/04/2003                                                                                         20^th June, 2003

                            Re: Checklist for Loading of Liability Only premium under

                                   GR. 3B of India Motor Tariff effective from 1.7.2002

This has reference to our circular No: Mot/6/2002 dated 23rd October, 2002 and IRDA’s circular dated 29th October, 2002.

The matter of drawing up a matrix for loading of Liability Only premium for adverse factors was considered at the 13th meeting of the TAC held at Hyderabad on 10th February, 2003. The parameters of loading of Liability Only premium as per Annexure (A) has since been approved by the Authority.

Insurers are hereby informed that Liability Only premium provided in various sections of the India Motor Tariff may be loaded on the basis of individual risk perception and adverse claims experience as per the matrix of loading enclosed.

As regards loading of Own Damage premium, insurers are permitted to devise their own checklist within the parameters of maximum loading laid down in our circular dated 23rd October, 2002. A copy of the checklist may be sent to TAC/IRDA for information and record only.

The above decisions will be effective for all fresh business and renewals falling due on or after 1st July, 2003. Insurers are requested to inform their operating offices suitably.

Secretary

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*** For Vehicles owned by institutions/ companies/ joint-owners 1 loading point shall apply

Add all applicable loading points. The Liability Only premium is to be loaded as per the following table :

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