General insurance premium set to go up from 1 April
Car, motorcycle and health insurance will cost more from 1 April with regulator Insurance Regulatory and Development Authority (Irdai) giving go-ahead to insurers for revision in commission for agents.
The change in premium after modification will be limited to +/- 5% 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 1 April 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 Irdai.
However, the change in premium due to the new regulations should be “limited to +/- 5% 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.