Chennai, Oct 2 With the base premium for third party liability under the vehicle insurance fixed by the Indian government, the general insurance companies want the flexibility to increase or decrease the same by 20 per cent.
The industry also wants the limit to go up to 40 per cent the next year and later for full detariffication.
The industry wants the 20/40 per cent flexibility even as some to the private players are offering discount - cut and pay system- on the government fixed base premium.
The cut and pay system is one where the insurers collect a lower sum than what is stipulated but print the actual premium figure on the policy.
It is learnt a working group on reforms in the general insurance products has suggested to the sectoral regulator on these lines.
According to the industry group, the premium rates are currently based on homogenous sub class i.e. cubic capacity wise for private car and two wheelers.
In the case of goods carriers, it is based on the gross vehicle weight
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