Project on THIRD PARTY MOTOR INSURANCE POOL.

Bachelor Of Commerce Banking And Insurance (Semester -VI)

SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

B-ROAD CHURCHGATE, MUMBAI- 400020

PROJECT TITTLE
THIRD PARTY MOTOR INSURANCE POOL

SYNOPSIS

SUBMITTED BY:-

AATHIRA SANTHOSH

TYBBI

ROLL NO: - 100

ACADEMIC YEAR: - 2016-2017

UNDER THE GUIDANCE OF

PROF. SYED MUBASHAR HASAN

B.SC, MBA, M.I.R.P.M

SIGNATURE OF GUIDE STUDENT`S SIGNATURE

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 Project on THIRD PARTY MOTOR INSURANCE POOL.
Bachelor Of Commerce Banking And Insurance (Semester -VI)

INDEX

SR. NO. PARTICULARS PAGE NO.

1 INTRODUCTION 3
2 SCOPE OF THIRD PARTY MOTOR 4
INSURANCE POOL
3 OBJECTIVE OF THE STUDY 4
4 LIMITATION OF THE STUDY 4
5 RESEARCH AND 5
METHODOLOGY
6 REFERENCES 5

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 Project on THIRD PARTY MOTOR INSURANCE POOL.
Bachelor Of Commerce Banking And Insurance (Semester -VI)

SYNOPSIS
INTRODUCTION

Third party motor insurance is the only insurance product in India mandated by
law. This means that one has to drive the vehicle on public road is bound under the
Motor Vehicles Act, 1988 to have a third-party motor insurance policy. The
primary function of third party liability insurance is to protect the Insured/Policy
Holder in the event of an accident causing bodily injury and/ or death and property
damage to third parties.The third party pool was created because of supply side
constraints. Distribution of the cover was limited because more efforts were put by
industry participants on other products. On 1st April, 2007 Indian Motor Third
Party Insurance Pool (IMTPIP) was setup by all General Insurers in India. The
main objective behind this was to make available Third Party Insurance to all
commercial vehicle owners at reasonable rates and terms and to distribute the
losses on this account to all market participants.

General Insurance Corporation of India (GIC) acts as the administrator of the pool.
It will act under the guidance of the General Insurance Council. For this purpose,
the Council has established various committees of insurers. These committees
advices GIC on all issues relating to the Pool.

The motor insurance was de-tariffed in 2007, however Third Party Liability cover
was still regulated to ensure that the mandatory third-party cover didnt become out
of reach for vehicle owners, this has posed a problem for the insurers.
The premium for the third party liability cover is limited however the claims are
unlimited. The lack of balance between the premiums paid and liability incurred
has led to an adverse claims ratio, especially with regard to commercial vehicles.
Currently non-life industry is experiencing huge losses on account of this portfolio.

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 Project on THIRD PARTY MOTOR INSURANCE POOL.
Bachelor Of Commerce Banking And Insurance (Semester -VI)

As mentioned earlier, Third party motor insurance is mandated by law in India.

Hence every vehicle need to have a third-party motor insurance policy. The third
party liability premiums are still regulated and the overall premiums are lower than
the losses reported under the cover. Due to this fact, the Third Party liability cover
continues to suffer with huge losses.

SCOPE AND AIMS

The research project will focus on THIRD PARTY MOTOR INSURANCE
POOL. The research shows how the third party insurance works, features
and benefits, current and future trends.

OBJECTIVE OF THE STUDY

To understand the role of THIRD PARTY in MOTOR INSURANCE.
To understand various measures taken by the IRDA for developing and managing the role
of THIRD PARTY in MOTOR INSURANCE.
To study the working of Third Party in Motor Insurance.
To study the problems faced by Third Party Motor Insurance Pool.
To know the importance of THIRD PARTY MOTOR INSURANCE POOL.
To find out the features and benefits of the Third Party Motor Insurance Pool.

LIMITATION OF THE STUDY

Time has been a major constraint.
Lack of availability of full information.
The study is purely based on secondary data so the field of study gets
limited.
The internet information can be irrelevant

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 Project on THIRD PARTY MOTOR INSURANCE POOL.
Bachelor Of Commerce Banking And Insurance (Semester -VI)

RESEARCH AND METHODOLOGY

a) Primary data collection

No primary data.

b) Secondary data collection

This project is based on secondary data.

Data is collected from various websites

Annual reports, journals, magazines, newspaper, books etc.

REFERENCES
https://www.hdfcergo.com/motor-insurance/what-is-third-party-
pool.html

http://economictimes.indiatimes.com/definition/third-party-
insurance

https://www.policymantra.com/blog/third-party-motor-pool-
unlikely-to-be-reintroduced/