Term plans getting costlier in India Market

Kathmandu: The Indian insurance industry is all set to witness a surge in insurance premium rate of term plans.
Due to the tightened underwriting and higher cost of reinsurance, the domestic insurance companies are compelled to increase their premium rate for term plans including health and Covid19 insurance coverage.
The Indian media quote insurance officials that the premium will increase by 15 to 40 per cent. In the last 18 months, most of the private sector insurance companies, except LIC, have increased the premium for term insurance, including Covid19, by 17 to 20 percent.
According to Indian media, General Insurance Corporation (GIC) had hiked reinsurance charges in March. Even if the insurance companies do not immediately impose the burden of this fee increase on the insured, it is certain that term insurance premiums will become more expensive soon.
Corona insurance claims increased two to three times in the second wave compared to the first wave of the epidemic. It compelled the reinsurers to increase the rate to minimize the loss of claim. According to the Times of India, the international reinsurer Munich Re has previously reported that reinsurance rate could be as high as 50 percent.