The Indian Insurance Industry hoped for a much better 2012 after a disastrous 2011 in which thousands of people were laid off and hundreds of offices closed. Lack of government reforms and tight regulation had resulted in losses and company exists. The new regulation by IRDA of doing away with a third party pool for disbursing insurance claims for the mandatory third party insurance for cars was hoped to be the beginning of good times. However the joy has been shortlived for the Indian Insurance Industry as the provisioning norms have been increased to 213 percent from 183 percent. What this means is the the car insurance providers will have to set aside more money from third party claims which will result in higher losses. This is the same as when RBI increases the CRR for Indian banks which results in lower profits for them. Car and Truck premiums account for 43% of the premiums and are a big loss marking area. The claim ratio is estimated at 153 per cent. That means for every Rs 100 premium collected, the claims paid are Rs 153. Read on how to buy the Best Car Insurance in India. General insurance industry faces…