Under the Insurance Act, 1938, what is the role of the

Solution

As per Section 64UC of the Insurance Act, 1938, the Tariff Advisory Committee (TAC) was empowered to: • Control and regulate the rates, advantages, terms, and conditions offered by insurers in respect of certain classes of general insurance (e.g., fire, motor). • The aim was to ensure uniformity, fairness, and prevent undercutting or unhealthy competition among insurers. • Although its powers have reduced after the liberalization of the insurance sector and rise of competition, the provision laid the foundation for pricing regulation in insurance. • The IRDAI now performs most regulatory functions, but the concept of TAC still exists within the Act.