>>     >>     >>   Insurance premium for car, motorcycle, health set to increase from April 1

Insurance premium for car, motorcycle, health set to increase from April 1

Insurance for car, motorcycle and health will cost more from April 1 with regulator Irdai giving go-ahead to insurers for revision in commission for agents.


By   |  Updated On : March 26, 2017 08:37 PM
General Insurance

General Insurance

New Delhi :  

Insurance premiun for car, motorcycle and health will cost more from April 1 with regulator Irdai giving go-ahead to insurers for revision in commission for agents.

The change in premium after modification will be limited to plus/minus 5 per cent of the existing rates.

The increase will be in addition to the enhanced third party motor insurance rates, which too will come into affect from April.

The Irdai (Payment of Commission or Remuneration or Reward to Insurance Agents and Insurance Intermediaries) Regulations, 2016 comes into effect from April 1, 2017.

The regulations, the regulator said, bring about certain revisions in commission/ remuneration rates and also introduce the reward system.

These may trigger insurers to revisit the pricing of their products in so far as the costing input relating to commission or remuneration is concerned, said the Insurance Regulatory and Development Authority of India (Irdai).

However, the change in premium due to the new regulations should be “limited to plus/minus 5 per cent of the existing premium rates of products/add-ons”, it said.

Further, insurers will have to give a certificate that there is “no detrimental change” in premium rates or any other provision of policies already sold. 

Also Read: 92% employees look up to employer-facilitated insurance plans: Survey 

Also Read:  Union Budget 2017: General insurance industry hails decision to increase coverage under PMFBY

First Published: Sunday, March 26, 2017 08:14 PM


Download the News Nation Mobile App and stay connected with top stories from India and around the world. Available on Android and IOS.


NEXT STORY