Health Insurance to emerge as the largest segment over motor soon

Health Insurance Sector is likely to emerge as the largest segment in the insurance segment, overtaking motor insurance, which is presently the largest portfolio for non-life insurers.

Against backdrop of rising life expectancy and high out-of-pocket expenses, it is clear that the potential for growth in health insurance is immense.

IRDAI proposes new rate of third-party motor insurance premiums:

In a recent announcement, IRDAI has notified the premium rates for private two wheeler and car third – party liability insurance cover for the financial year 2019-20. The new rates suggest an increase for two-wheeler and car third-party liability covers with effect from June 16,2019. The highest percentage increase of cover 21% will be for two wheelers with engine capacities between 150 cc and 350 cc.

From Rs. 985 to Rs. 1,193 the rates are being hiked. Vehicle owners will now have to pay an extra Rs. 208 this year. However, there has been no change for two-wheelers with engine capacity of over 350 cc.

As per the IRDAI notification issued on June 4, insurers have to ensure that the third party insurance is made available at their underwriting offices