The GIC Re as administrator shall be paid a fee of 2.5% of the total premium on motor third party insurance business in respect of the business underwritten for the pooled account.
The sharing arrangement will be in the case of GIC its statutory reinsurance sessions, this is presently 15 %, hence GIC Res share will be 15% of the TP pool.
The General Insurance Council of India has been given the authority to lay down the rules and procedures for underwriting, accounting and settlement.
It will be obligatory on the part of the insurance companies to segregate funds on account of the pool business in their accounts and invest them in a manner as provided in the IRDAs Investment Regulations.
Pool administrator shall conduct periodical inspections of the member companies to assess their efficiency in settlement of claims and also verify the accuracy of the quarterly statements in respect of the pool business.
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