Car, motorcycle and health insurance will cost more from today

New Delhi: You will have to pay more premiums for car, motorcycle and health insurance from April 1 as Insurance Regulatory and Development Authority (IRDAI) has given a green signal to insurers for a commission revision for agents.

The change in premium after modification will be limited to +/- 5 percent of the existing rates.

The regulations, the regulator said, bring about certain revisions in commission/ remuneration rates and also introduce the reward system. These may trigger insurers to revisit the pricing of their products in so far as the costing input relating to commission or remuneration is concerned, said the Insurance Regulatory and Development Authority of India (IRDAI).

However, the change in premium due to the new regulations should be "limited to +/- 5 percent of the existing premium rates of products/add-ons", it said. Further, insurers will have to give a certificate that there is "no detrimental change" in premium rates or any other provision of policies already sold.

The increase will be in addition to the enhanced third party motor insurance rates, which too will come into affect from April.

IRDAI had earlier proposed up to 50 percent increase in insurance premium for cars, motor cycles as well commercial vehicles.

The hike proposed in mid-segment cars (1,000 - 1,500 cc) as well as bigger cars and SUVs is 50 percent.