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NEWS

General Insurance Premium to Increase from April 1st, 2017

Janhavi Shinde Janhavi Shinde 27 March 2017

From April 1, 2017, customers might have to shell out more bucks on their car, motorcycle and health insurance premiums. Read to know more about this revision in premium rates.

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India's Insurance Regulator and Development Authority of India (IRDAI) have set for an increase in premium from April 1, 2017, for car, motorcycle and health insurance sector. According to a recent amendment, rates on commissions or remunerations or rewards granted to the insurance agents are to be revised from April 1, 2017. A new reward system has also been introduced in the regulation.

Insurance agents earn commissions on the policies sold to a customer. Since insurance companies would now have to pay higher commissions to these agents, customers might have to share the load too.

However, the hike in premium will be restricted up to +/- 5 percent of the current rates of insurance products/ add-ons.

This revision in prices will not affect those customers who have bought insurance policies before April 1, 2017.

Note: These revisions in insurance products are over and above the price hike in third-party motor insurance premiums.

Janhavi Shinde
Written by Janhavi Shinde
Right from being a Flight Attendant to a Banker and now to a Content Writer, she has tasted success in all the fields. The kinda girl who loves pets and knows how to manage difficult people and events.