Private life insurer Kotak Life Insurance has said that it is looking at increasing term insurance premium rates while Max Life is likely to do so by the end of this month.
If you are thinking of taking a term plan, then take a decision immediately. Because there is a possibility of a big increase in its premium. Tata AIG Life and Birla Sunlife Insurance may hike term insurance premiums this week. While Max Life is likely to do so by the end of this month. Kotak Life Insurance, on the other hand, has said that it is looking at increasing term insurance premium rates and will soon file a new product with the insurance regulator IRDAI.
The company’s MD Mahesh Balasubramaniam said that due to the pandemic, insurance companies have been affected globally and this has led to new valuations. He said that in the last few months due to the high number of claims, many insurance companies have increased the premium on term insurance products. Let us inform that ICICI Prudential Life and HDFC Life Insurance had increased the premium of their respective term plans in December 2021. After this Bajaj Allianz Life Insurance has also increased the premium of term insurance plan by about 15%. Various insurance companies have increased the premium range by 10-30%.
Plan to increase
Balasubramaniam said that our last price hike (in term insurance premium) was in April last year. We will assess the situation and file a product (with IRDAI). However, he did not specify how much the company is planning to increase. Balasubramaniam said that the death rate has increased across the world due to the pandemic.
Premium up 37 percent to Rs 3,376 crore
The total new business premium of the company grew by 37 per cent to Rs 3,376 crore in April-November 2021, he added. Its personal business renewal premium registered a jump of 20 per cent to Rs 3,002 crore during this period. During the first half of the financial year 2021-22, the company settled 62,828 claims worth Rs 1,230 crore. Its solvency stood at 2.61 in H1 FY2022.
