Term insurance premiums are likely to be expensive. Insurance companies are preparing to increase the premium of term insurance by 25 to 30 percent. Munich Re, the largest re-insurance company in the Indian insurance market, has increased the underwriting rates for term insurance by up to 40 per cent. Because of this, term insurance can be costly in the country. Sources related to this matter said that the new rates of insurance premium may come into effect from December.
Underwriting rates increased for the second time: This year the underwriting rates have been increased for the second time. Rates were increased by 4 to 5 per cent in March. At the same time, in June last year, there was a huge increase of 20 to 25 percent in it.
Four to five times the claims received –
Life insurance companies have received four to five times more claims of Kovid related deaths in the current financial year as compared to the previous financial year, causing huge losses to them. The financial burden on insurance companies has increased due to the sudden death of people due to the corona epidemic..
Due to this the premium will increase –
Insurance companies fix the premium based on the insurance underwriting rate. The higher the risk involved in underwriting, the more expensive the premium can be. The risk has increased due to the corona pandemic. Hence the companies say that they have no other option but to increase the premium.
