Health, Home and Vehicle Insurance to Cost More
Tuesday, 21 February 2012, 21:46 IST
By SiliconIndia
By SiliconIndia
Previously, the ministry had asked GIC not to pay commission at all on businesses that are compulsorily reinsured. IRDA asked GIC to abide by its contract with insurers and restore the 10 percent commission, following complaints from insurers who felt short-changed. The government has once again intervened and asked GIC to pay out 5 percent against the promised 10 percent. This will raise the cost of reinsurance cover for primary underwriters and would add to price pressures.