The Insurance Regulatory and Development Authority of India (IRDAI) has come out with a clarification that insurers were permitted to change the base premium up to +/- 5 per cent of originally approved premium rates, in order to comply with the guidelines on standardization of exclusions as a one time measure for seamless transition of existing products to ensure viability and sustainability, According to IRDAI, as on September 30, 2020, out of 388 products, premiums were increased by general and health insurers up to 5 per cent of the then prevailing rates only in case of 55 products.
Further, the insurance regulatory authority has cleared revision in premium beyond 5 per cent in respect of only five health insurance products of general / health insurers during the year up to November 30, 2020 as part of the periodical modification of their respective products, based on the incurred claims experience.
IRDAI is an autonomous, insurance regulatory body and is responsible for promoting and regulating the insurance and re-insurance industries in the country.
Meanwhile, recently the ICICI Lombard General Insurance Company, owned by the ICICI Bank, had received an in-principle approval from the Insurance Regulatory and Development Authority of India to the draft scheme of arrangement between itself and the Bharti AXA General Insurance Company. The deal is set to create the country’s third-largest non-life insurance company, with a combined annual premium of ₹ 16,447 crore and a market share of almost 8.7 per cent. (Also Read: ICICI Lombard Gets Nod From Insurance Regulator To Acquire Bharti AXA )
ICICI Lombard General Insurance Company said in a regulatory filing to the stock exchanges that the IRDAI had granted in-principle approval under Section 35 to 37 of the Insurance Act, 1938 with respect to the said transaction.