GENERAL CIRCULARS 2006

 

 

 

Cir No

Date

Subject

Effective Date

TAC/1/06

20/01/2006

Clarification on Terrorism Cover under Fire Insurance

 

 TAC/2/06

 19/06/2006

 Cover for Terrorism Risks under Fire, Engineering and IAR Insurance Tariffs w.e.f 1-4-2004

 

TAC/3/06 26/06/2006 Corrigendum- Cover for Terrorism Risks under Fire, Engineering and IAR Insurance Tariffs w.e.f 1-4-2004  
TAC/4/06 29/06/2006 Submission of Annual Report to TAC  
TAC/5/06 19/10/2006

Cover for Terrorism Risks under All India Fire Tariff – Revision of Deductible limit for Householders and Shopkeepers policies (Property Section)

 
Corrigendrum  

Cover for Terrorism Risks under All India Fire Tariff – Revision of Deductible limit for Householders and Shopkeepers policies (Property Section)

 
TAC/6/06 23/11/2006 Revision of Data Formats  
TAC/7/06 4/12/2006 Discontinuance of tariffs in various classes of business 01/01/2007

 

  

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TAC/1/06                                                                 Date  :  January  20, 2006

 

Re : Clarification on Terrorism Cover under Fire Insurance

 

            This refers to our circular No.TAC/4/04 dated December 16, 2004.

 

            It is clarified that where the sum insured for earthquake cover includes sum insured of plinth and foundation in case of a fire policy, total sum insured considered for Terrorism cover for the fire policy shall also include sum insured of plinth and foundation.

 

            Insurers are requested to inform their operating offices suitably.

 

                                                                      

                                                                                    Asstt. General Manager In-Charge

 

                                                                                        


TAC/2/2006                                      Date: 19-6-2006                                                                           

                                   Re : Cover for Terrorism Risks under Fire,

                                          Engineering and IAR Insurance Tariffs w.e.f 1-4-2004

        This refers to our circular no. TAC/4/04 dated 16/12/04.

        It is clarified that for the unexpired period of existing policies expiring on or after 1-4-2006 with Total Sum Insured (MD+LOP) exceeding Rs. 500 crores, the overall liability cap for terrorism risks per location/compound may be increased as per column-II of the following table:
I II
Total Sum Insured (MD+LOP) Overall (MD+LOP) liability cap per location/compound
Exceeding Rs. 500 crores but not exceeding Rs. 600 crores Total Sum Insured
Exceeding Rs. 600 crores Rs. 600 crores

The change in the overall liability cap as above may be endorsed on the policies without charging any additional premium.

All other terms and conditions of our circular no. TAC/4/04 dated 16/12/04 remain unchanged.

Insurer are requested to inform their operating offices suitably.

Deputy General Manager I/C

                                                                         


TAC/3/2006                                                                      Date: 26-6-2006

Corrigendum-

                                Re : Cover for Terrorism Risks under Fire, Engineering and

                                         IAR Insurance Tariffs w.e.f 1-4-2004

This refers to our circular no. TAC/1/06 dated 19-6-2006 on cover for terrorism risks under Fire, Engineering and IAR insurance tariffs w.e.f. 1-4-2004 . The circular number should read as "TAC/2/2006" instead of "TAC/1/2006" . The correct circular number is already posted on the website.

Insurers are requested to make a note of this and inform their operating offices suitably.

Deputy General Manager I/C

 


TAC/4/2006                                                         June 29, 2006

                            Sub: Submission of Annual Report to TAC

All non-life insurers are hereby informed that 2 printed copies of their publised Annual Reports have to be submitted to TAC soon after their publication.

Annual Reports for the financial year 2005-06 may be sent to us at the earliest.

Dy. General Manager

                                                                                     


 

TAC/ 5 /06                                                       Date : 19-10-2006

 

            Re: Cover for Terrorism Risks under All India Fire Tariff –

                  Revision of Deductible limit for Householders

                  and Shopkeepers policies (Property Section)

                                        

            This refers to our earlier circular no.FT/1/2002 dated 13-3-2002.  It has been decided to modify the wording for the item 8 in respect of ‘Deductibles’ in the above circular as under:

 “8) Deductibles : Every claim under terrorism cover will be subject to a deductible as under:

 Industrial Risks – 0.5% of TSI subject to a minimum of Rs.1 lakh

(i.e Risks rateable under Section IV, V, VI and VII of All India Fire Tariff and under Petrochemical Tariff)

 Non-industrial Risks  (Risks rateable under Section III of All India Fire Tariff, except property section under Householders and Shopkeepers Policies ) – 0.5%  of TSI subject to a minimum of Rs.25,000/-

 Note: In case of property section under Householders and Shopkeepers Policies the deductible shall be  0.5% of TSI subject to a minimum of Rs.10,000/-“

 Insurers are requested to inform their operating offices suitably.

  

  Deputy General Manager-in-charge

 

                                                                           


Date:23-11-06

 

Corrigendrum

 

Re:Cover for Terrorism Risks under All India Fire Tariff –

      Revision of Deductible limit for Householders and

      Shopkeepers policies (Property Section)

 

This refers to our circular no.TAC/4/06 dated 19/10/06 on the captioned subject.  The circular number should read as ‘TAC/5/2006”  dt.19/10/2006 instead of TAC/4/2006 dt.19/10/2006.  The  correct circular number is already posted on the Website.

Insurers are requested to make a note of this and inform their operating offices suitably.

 

                                                                                              

Deputy General Manager I/C

                                                                          


 

 

 

Ref : No.TAC/6/2006                                                 23 November 2006

 

Sub : Revision of Data Formats

 

The formats presently in use for data collection were introduced in the year 1999 / 2000 when the industry was in the early stages of computerization and data compilation. The existing data formats were also designed for the limited purpose of the tariff market.

 

In the recent past, formats for submission of Motor data were revised to take care of the changed needs of the market. Health insurance data formats were also introduced on similar lines. In order to cater to the needs in a tariff free scenario, during the last one year, IRDA and TAC had elaborate discussions with underwriters, IT experts and actuaries of insurance companies. Steering Committees of subject experts and actuaries were formed to revise the data formats in specialized areas.

 

By the said process, so far, the following formats have been revised:  1. Fire, 2.Marine Cargo,  3. Marine Hull, 4. Erection All Risks/ Contractors All Risks (Engineering), 5.  Boiler & Pressure Plant (Engineering) and 6. Machinery Loss of Profits (Engineering). Insurers are requested to incorporate these formats into their systems at the earliest so that all future data submissions are in these formats.

(The revised formats for the other streams of insurance will be sent shortly.) 

 

The data for the past periods 2003/04, 2004/05, 2005/06 and 2006/07 may be extracted into these formats on “as is how is” basis and submitted to TAC. Data up to 31/3/06 may be submitted before 31/1/2007 and data for 2006/07 may be sent by 21/4/2007. Some data elements are left “non mandatory” for these past periods.

In respect of all future data submissions with effect from 1st April 2007, all the data requirements in these revised formats will be “mandatory”.

 

 Insurers are requested to nominate one or two ‘Compliance Officers’ for data submission at the earliest and send their contact details to Mr. P. K. Swain, Deputy General Manager who is in charge of TAC’s Data Repository.

 

In case of any difficulty on the formats, insurers may contact TAC. Soft copy of formats are posted on TAC’s website <www.tac.org.in>

 

Insurers are requested to inform their operating offices suitably.

 

                                                                     FORMATS

 

Dy. Gen. Manager in Charge

                                                                      

   


TAC/ 7 /06                                                                  4th December, 2006

            Sub: Discontinuance of tariffs in various classes of business

The Tariff Advisory Committee decided at its meeting held on 24th August, 2006 that the tariffs in Fire, Engineering, Motor, Workmen’s Compensation and other classes of business currently under tariffs shall be withdrawn effective from a date to be decided by the Chairman, TAC.

           Accordingly, it has been decided that the tariff rates, terms, conditions and regulations for Fire, Engineering, Motor and Workmen’s Compensation business and other classes of business currently under tariffs, shall stand withdrawn with effect from 1st January, 2007. 

          Consequently the rates, terms, conditions and regulations applicable to these classes of business will be regulated by the Insurance Regulatory and Development Authority effective from 1st January, 2007.  

Deputy General Manager-in-Charge  

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