Premium rates for motor insurance third part companies are prone to go up no less than 40 per cent as the controller has steeply climbed the money general insurance agencies need to set aside for gathering the high asserts in this line of business. As per T. S. Vijayan, Chairman of IRDA, the steep climb was proposed by an actuarial council for the declined danger pool
As of now, the measure of the declined danger pool is around Rs 210 crore. General Insurance Council, Secretary R. Chandrasekaran, said that the steep expand in provisioning is a reasonable sign that the premium rates at current levels are insufficient.
As per Future Generali India Insurance, CEO and Managing Director, K.G. Krishnamoorthy Rao the general protection industry might need to give around Rs.450 crore towards extra capital. The climb in provisioning is likewise prone to affect the dissolvability proportion of a few back up plans who may be obliged to imbue extra capital, he included.