Cancellation or change in nomination in insurance policies now comes at a cost as regulator IRDAI has allowed life insurers to charge up to Rs 100 for any such modification.
For policies obtained online, the fee is up to Rs 50.
The IRDAI guidelines for 'Registering Cancellation or Change of Nomination' have come into effect from April 1, 2015.
The Insurance Act allows the holder of a life policy to nominate, on his own, a person or persons to whom the money shall be paid in the event of his death while effecting the policy or any time before it matures.
"In respect of those policies that are issued in electronic form... The fee collected shall not exceed Rs 50. In respect of policies other than those, the fee collected shall not exceed Rs 100," the Insurance Regulatory and Development Authority of India (IRDAI) said in an order.
"No fee other than what has been prescribed shall be collected for registering a nomination either at the time of effecting a policy of life insurance or at any time thereafter or towards any other services relating to nomination," the regulator added.
Source: Zeenews
Owning a vehicle would now pinch pockets more, with third-party motor insurance premiums set to rise for two-wheelers, private cars and heavy load carriers from Wednesday.
"It is observed that the cost inflation index (CII) has increased by 9.05 per cent over the previous year, i.e. from 939 in FY 2013-14 to 1024 in FY 2014-15... the Authority hereby notifies the premium rates applicable to Motor Third Party Liability Insurance covers with effect from April 1, 2015," the Insurance Regulatory and Development Authority of India (IRDA) said in a notification.
The premiums are being revised after a gap of three years.
Owners having third-party cover for private cars of 1,000 cc capacity would now have to pay premiums of Rs. 1,468 (from Rs. 784); those exceeding 1,000 cc but below 1,500 cc will attract a premium of Rs. 1,598 (from Rs. 925), and those above 1,500 cc Rs. 4,931 (from Rs. 2,853).
"Motor Third Party Liability premiums are increasing but at the same time insurance companies are still losing money on the portfolio."
"In a free market scenario...each insurer should be free to price the product as per their risk perception. That will ensure that insurers who are committed to providing good service in this portfolio have an opportunity and incentive to differentiate their services which no one may be willing to do in a fixed price, loss-making scenario," said Pavan Dhingra, director of Prudent Insurance Brokers.
The third-party cover for two-wheelers of 150 cc to 350 cc capacity would attract a premium of Rs. 554 from the current Rs. 350, and those exceeding 350 cc Rs. 884 as against Rs. 680 at present.
The general insurance industry had favoured a hike in the third party motor premium to the tune of 40-50 per cent against a steeper increase proposed by insurance regulator IRDA.
The regulator had on March 9 proposed a steep increase in the third-party premium, ranging between 14 and 108 per cent from April 1. This is on top of the 9-20 per cent hike already effected across vehicle categories for this fiscal year.
It is mandatory to for a vehicle owner to obtain third-party insurance to provide insurance cover to others in case of injury or loss of life.
Source: Profit.ndtv.com
