Despite general insurance companies’ repeated requests for dismantling of the declined risk pool, Insurance Regulatory & Development Authority (IRDA) has plans to continue the pool for the next two years.

IRDA Chairman J Hari Narayan on Friday declared that the pool would not be dismantled or done away with. He said it should be continued for the next two years so that it impact could be gauged.

Speaking to media persons on the sidelines of an Insurance Brokers Association of India (IBAI) conference, Mr. Narayan said that dismantling of the declined risk pool and pricing mechanism and it leaving it to the open market was the main request of non-life insurers. But, he added that IRDA had some concerns on that.

Expressing concerns over the requested move, Mr. Narayan said, “We have some concerns on this. This is because the last time it was dismantled; there were hardly any third-party sales by private insurers.”

The so-called declined risk pool took effect in April 2012, after the claim ratio on the third-party motor insurance jumped to 213 per cent.

Mr. Narayan also admitted that IRDA and the Government had different views on the proposal to increase Life Insurance Corp (LIC) of India’s equity investment limit in firms to 30 per cent. He said it was a matter of legal interpretation.