India motor: Finally, light at the end of the tunnel?

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By Jack K. Jiang, Pang-Hsiang Chye | 14 March 2013
India’s Insurance Regulatory and Development Authority (IRDA) issued an exposure draft in February that proposes significant premium rate increases for most vehicle classes of motor third-party insurance for the financial year 2013-2014. Although the premium rates vary by subclass, for the sake of simplicity and to ensure a less volatile premium change for different policyholders, IRDA proposed that the subclasses be grouped together and a single revision be made for vehicle class as a whole. This rate revision is expected to have a material and positive effect on loss ratios and motor insurance profitability overall.