General Insurance Premium up by 15 percent
Posted on: 14/Mar/2017 2:33:40 PM
All the General Insurance companies have decided to increase the premium amount to cover general insurance concerning 10 different fields including medical claims by 10-15 percent from 1st April.
General Insurance companies, covering non-life aspects including natural disasters such as storm, floods, fire, and accidents, are facing a difficult period having to pay huge sums for the general insurance claims.
In this situation, the bank interest rate has also dropped. This has affected the revenue earned by the investments made by the general insurance companies.
Due to these reasons, the general insurance has announced their decision to increase the premium amount in 10 fields.
In particular, this includes the 3rd person insurance coverage for Motor vehicles and Group Insurance, which will go up from 1st April.
A member of the Insurance regulation Council, P.J. Joseph, explained in this regard that the profit margins of the general insurance companies have eroded by a large extent. So, it is no wonder that they are increasing their premiums.
With the above scenario, the general insurance coverage for 10 fields, including vehicles, health, medical treatment, electricity, and cement which have been causing losses to the general insurance companies, the premium will go up by 10-15 percent.
The President-cum- Managing Director of the leading companies in this field, New India Assurance, Mr. G. Srinivasan explained that as the premium insurance ratio of the general insurance has gone down to an unbearable level, they have been taken up for review and refinement. It is very likely that the general insurance premiums for fire accidents and group insurance schemes will go up in the next financial year.
