As if the ever increasing petrol prices, possible subsidy on Diesel cars and other measures were not enough, get ready for a hike in general insurance including vehicle insurance. According to the article in today’s ToI, buying motor insurance would cost more starting this April as our finance ministry has asked the national reinsurer, General Insurance Corporation to stop underwriting loss making businesses.
According to IRDA’s annual report for 2010-11, motor insurance had high claim ratio of 103 percent which simply means that claims overtook premiums. And to compensate for this loss making business companies might raise premiums which would eventually be paid by us and it could be as soon as coming April.
By,
Saad Khan
MotorBash.com
