Premiums of Fire, Group Health, Motor Insurance May Go Up

The insurance premiums in segments like fire insurance, third-party motor insurance and group health insurance are likely to go up in the wake of losses being incurred by various insurers in India.

According to the chairman-cum-Managing director of United India Insurance, certain segments in insurance are making some kind of losses. So, there will be some hike in premiums in these insurance lines. Moreover, he said that, the proposed rise in FDI cap in insurance sector would help in bringing more capital into the insurance industry.

Further, the company was quite comfortable with the recent IPO guidelines released for non-life insurers. Moreover, it is putting emphasis on upcoming new products in retail segment.

Thus, a hike in the premium, especially in commercial motor insurance segment is necessary. It needs to be increased by 30-40%.