Under the Insurance Act of 1938 a Tariff Advisory Committee (TAC) was constituted which decides the terms, conditions, rates, Policy forms and proposal forms for certain class or type of Insurance,. The Tariffs laid down terms, conditions, warranties and rates of premium applicable for the type of cover required. Policies were issued in accordance with the provisions of the respective Tariffs. TAC was consulted if there were any doubts in underwriting. However, consequent upon opening of market the IRDA directed the Indian insurers to follow the terms and conditions prescribed in the Tariffs, though, they are free to charge their own premium rates and apply deductibles at their discretion. However, Motor Act only premium rates are still decided by IRDA on annual basis keeping in view the market fluctuations and claims experience.