By PTI | Updated: Mar 26, 2017, 07.55 PM IST
This is an India thing but it makes good reading considering Malaysia is also implementing the detariffication of our Motor and Fire insurance tariff. India regulators imposed +/-5% and Malaysia is on a limit of +/-10% of tariff premium and applicable loadings. The disapplication of the tariff rating might just push the premium upwards…., or is it the other way round?
The regulations, the regulator said, bring about certain revisions in commission/ remuneration rates and also introduce the reward system.
NEW DELHI: Car, motorcycle and health insurance 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 +/- 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 effect 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 +/- 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.