De-tariffing may raise premium by 20%

Kolkata, June 6 | Updated: Jun 7 2006, 05:42am hrs
Oriental Insurance Company expects the motor insurance premium rates to go up by 20-30% on an average, once the de-tariffing of general insurance comes into effect from January 2007.

There would also be a similar upward pressure on other rates of fire and marine insurance which are currently regulated, Oriental Insurance chairman and managing director M Ramadoss said on the sidelines of a seminar on general insurance, organised by the Federation of Indian Chambers of Commerce & Industry (Ficci) in Kolkata on Tuesday.

A major challenge before insurers is the poor penetration of general insurance in the rural areas, according to Mr Ramadoss.

"For general insurers, it is just not economical reaching out to the rural areas with micro insurance. As a way out, we could go for mass distribution of the products taking help of non-governmental organisations."

New India Assurance Company Ltd chairman B Chakraborti made a case for a regulator to standardise the various cost elements involved in medical treatments.