What is this Tariff and De-Tariff of motor insurance?
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What is this Tariff and De-Tariff of motor insurance?
Tariff - Rates defined by Tariff Advisory Committee (TAC) and rates tables are released and each company has to follow the rates. So the rates are fixed.
Non - Tariff - Rates of the Products not defined by Tariff Advisory Committee (TAC) and each company can fix there own rate
De-Tariff - Above Tariff restriction has been removed by IRDA
Vijay as mentioned by Rohit, initially some of the insurance products are governed by TAC, which provide the rates and each General Insurance Company has to follow it. Like - Motor, Fire etc. Later one in 2008, IRDA has removed the tariff, so it is called as de-tariff.
All general insurance products get De-Tariff from 1st Jan 2007, But only Motor, which contributes 80% business in general insurance industry, get De-Tariff from 1st of July 2007.