NEWS & ADVICE : AUTO INSURANCE
Insurers prompts regulator to allow longer term policies
By Neelima Shankar
Jan 18, 2013
Print    Email    RSS   

With low levels of penetration and poor renewal of general insurance products in the retail business have prompted the general insurers to ask the regulators to allow insurance policies with longer term renewals i.e. every 3-5 years.

The retail line of business includes auto insurance, health insurance, home and personal accident insurance.

Presently, the general insurance products are renewed annually. However, some health insurers issue policies up to maximum of three years.

Mr. M Ravichandran, President Insurance of Tata AIG General Insurance said, "The ticket size is small in the retail line of business so a longer term renewal will definitely be less cumbersome for customers".

Customer acquisition, printing and issuing of policies are the major cost for all the insurance companies. For customers, long-term policies are more beneficial as they provide them with better value as insurers propose to price them lower by factoring in the no-claim discount into the premium. Along with it, a long term policy reduces the possibility of it lapsing.

Mr. G. Srinivasan, CMD, New India Assurance said, "There were some concerns that the regulator had expressed (regarding longer term policies). Long term policies mean we must have proper accounting in place and adequate actuarial support to calculate premiums on a long-term basis".


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Guide to get a an auto insurance claim...
Tips to reduce Auto Insurance Premium
Kinds of auto insurance coverage
Some New Ways to Save on Your Car...
Must have add-ons for luxury car insurance


kya account no 05890100004013 uco bank ke hi he...
i want account number i lost my passbook
i want to a dsa code for credit card
How many rs balance in my account sbi
Pl. find the address of account holder Accont no....
NRI Quash of FIR best lawyer advocate india...

NEWS THIS WEEK
New endowment plan launched by PNB met life Feb 18, 2015
Yes bank bagged High performance award 2014. Feb 13, 2015
Banks may strike at February end Feb 4, 2015
Reliance industries to enter in to banking in association with the SBI Feb 3, 2015
OBC bank reported a drop down in its net profit Jan 30, 2015
News Archive