Citizens' Issues
SC asks Centre not to alter pricing system for essential drugs

The apex court made it clear that the Government should not alter the existing pricing system...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
IRDA to bar arbitrary hike in renewal premium on health policy

According to IRDA chairman, the insurance company would have to assess the health risks of a policyholder at the time of selling the policy and not at the time of renewal

 
New Delhi: Insurance Regulatory and Development Authority (IRDA) will soon come out with guidelines to prevent insurance companies from arbitrarily hiking renewal premiums on health policies under which benefits had been claimed previously, reports PTI.
 
"We have seen that if a party makes a claim in a given year, it is likely that the insurance company may increase the premium because you have made a claim.
 
"To some extent it means they are doing underwriting at the time of the claim. And that is not the way you do underwriting. That is what we are bringing it in draft regulations," J Hari Narayan, chairman, IRDA said at a CII event here.
 
The IRDA said the norms would be part of the overall guidelines for the health insurance sector.
 
Hari Narayan said while changing the premium, the insurers will have to take into account the experience of the entire class and not only individual.
 
"The way it will be fashioned is when you are loading the premium, the loading cannot be on the basis of individual claim experience, it will have to be based on the behaviour of the entire class," he said.
 
Hari Narayan said the insurance company would have to assess the health risks of a policyholder at the time of selling the policy, as happens in most countries.
 
"In health insurance, the problem is if you really want to assess what the health risk is on a given prospect, it requires quite a lot of time and medical intervention. So people (insurers) tend to do this later. They do it when a claim comes. I think that will change," he said.
 
The health insurance sector grew by 33% in the first six months of the current fiscal, up from 23% last year.
 

User

Maruti Suzuki hikes car prices by Rs2,500 to Rs5,250

The average hike in the price across models is around 1% or between Rs2,500 and Rs5,250, Maruti Suzuki  said

 
New Delhi: The country's largest car maker Maruti Suzuki India on Wednesday said it has hiked prices of its all variants by up to Rs5,250 with immediate effect to offset adverse impact of foreign exchange fluctuation and rising input costs, reports PTI.
 
"The average hike in the price across models is around 1% and the range will be between Rs2,500 and Rs5,250," a company spokesperson said.
 
The price increase will take place with immediate effect, he added.
 
The company sells a range of models starting with the small car M800 to the luxury sedan Kizashi, which are priced between Rs2.04 lakh and Rs17.5 lakh (ex-showroom Delhi).
 
Last month, Maruti Suzuki India Chief Operating Officer (Marketing and Sales) Mayank Pareek had said the company would hike prices of its vehicles due to various factors.
 
"There is a lot of pressure on our margins due to the foreign exchange fluctuation and rising input costs," he had said.
 
The company had said that in order to counter the impact of adverse currency movement, it is targeting to reduce its forex exposure by nearly 65% to $600 million by March 2015 for which it is working with its vendors to reduce imports.
 
Besides, the company is looking out for new markets to increase exports of its products to mitigate impact of unfavourable foreign exchange fluctuation.
 
Other car makers including Honda Cars, General Motors and Audi India have either raised the prices of their vehicles or in the process to do so.
 
Honda Cars India raised the prices of its three models -- Brio, Jazz and City -- by up to 2.6% with effect from 1st October.
 
General Motors India had said it would increase the prices of all its models from 1st October to offset the impact of rising input costs and currency fluctuation.
 
Luxury car maker Audi had hiked the prices of its sports utility vehicle Q3 by up to two per cent, translating into an increase of Rs50,000, from this month.
 
However, Tata Motors on Tuesday cut the prices of its compact car Indica eV2 by Rs23,000 with the launch of a refreshed version.
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)