IRDA to monitor solvency of General Insurance Cos.

IRDA will monitor the solvency status of general insurance companies on a quarterly basis once the free pricing of insurance products is allowed from next year. Currently, Irda inspects the books of insurance companies only once a year.

Mr C.S. Rao, Chairman, Irda, said that after January 1, 2007, insurance companies will be competing on price as the terms of existing contracts would be maintained for about 15 months. "We will be monitoring the solvency of general insurance companies on a quarterly basis, rather than an annual basis," Mr Rao said. He was speaking on the sidelines of the Asian Life Insurance Summit. Around 70 per cent of the general insurance business such as fire and motor insurance are under tariff or a predetermined rate structure. More....