In December 2006 IRDA issued direction that all the General Insurers operating in India will collectively participate in a pooling arrangement to where in all motor third party insurance business. The GIC was nominated as the Administrator of the Pooling Arrangement. The pool was made operational w.e.f. 1st April 2007 whereby (01) The GIC’s share would b the statutory cession received by it (01) All other members will cede to the pool in proportion to their market share of the Gross Direct Premium underwritten in India (03) The General Insurance Council shall appoint a committee to lay down detailed underwriting policies and procedures as well as detailed claims processing procedures. (04) The pool will handle only commercial vehicles covered by policies issued by all general insurance. (05) Since the motor third party business is expected to run on a “no profit no loss” basis, there shall be no ceding commission in respect of the business ceded to pool w.e.f. 1.4.2010. Earlier it was 10%.