IRDA increases insurance provisioning to 210%

India Infoline News Service | Mumbai |

The higher provisioning will not increase premium rates for people buying motor insurance but it will raise costs for insurers

The Insurance Regulatory and Development Authority (IRDA) has asked general insurance companies to charge themselves a 210% provisioning instead of the current 110% for a high risk category of third party motor insurance risks.

According to a notification issued by IRDA on November 18, a special committee formed by the regulator has recommended the higher ratio for Declined Risk Pool.

The higher provisioning will not increase premium rates for people buying motor insurance but it will raise costs for insurance companies.






 

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