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Tariff regime will continue: IRDA chief

Our Bureau

NEW DELHI, Nov. 22

THE tariff regime for the general insurance sector would continue for some years, the Chairman, Insurance Regulatory and Development Authority (IRDA), Mr N. Rangachary, has said.

``The regulations on de-tariffing will come only after the authority is convinced that players are able to meet the rigours of the fierce competitive pressures in the market,'' the IRDA Chairman said at the CII's Fifth Insurance Summit.

Mr Rangachary said that he proposed to continue with the tariffs till there was some certainty of revenue for the companies. He said the tariffs would be set by the Tariff Advisory Committee (TAC) under the overall supervision of IRDA.

He said other than the tariffised items, the companies would be free to price and market their products after filing the requisite details with IRDA.

``There will be no requirement of approval of a product. The authority is totally acceptable to the introduction of a particular product if the companies feel it is necessary and they are confident of marketing it,'' Mr Rangachary said.

He said the aim of IRDA has been to come out with regulations which conform to the international behaviour and pattern of insurance regulatory bodies. ``Indian regulations are not a different type of animal,'' the IRDA Chairman said.

Dwelling on the Insurance Council proposed by the CII, Mr Rangachary hinted that the functioning of the body might run into conflict with similar councils proposed for the life and non-life sectors under the IRDA Act.

He pointed out that since the councils, to be set up by the Government in consultation with IRDA, would have a statutory status, the CII body would have to function in close association with them.