From April 1, insurance premium to go up

Car, motorcycle and health insurance will cost more from April 1, with the Insurance Regulatory and Development Authority of India (Irdai) giving a go-ahead to insurers for a revision in commission for agents.

The change in premium after revision will be limited to plus or minus 5% of the existing rates, the regulator said. 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 increase will be in addition to the enhanced third-party motor insurance rates, which also will come into effect from April.

The regulations, according to Irdai, will bring about certain revisions in the commission or remuneration rates, and will also introduce the reward  system. Further, insurers will have to give a certificate that there is “no detrimental change” in the premium rates or any other provision of policies already sold.