For the first time, many non-life insurance companies have decided to link the pricing of fire insurance policies to the claims experience.
Insurers are doubling rates for those who have reported claims that are more than three times the premium paid, reported Times of India.
The moves follow the IRDAI’s directive that premium rates published by the insurance information bureau need not be treated as a minimum rate, quoting industry sources.
Linking insurance rates to the track record of a policyholder enables companies to give discounts to customers as claims in property insurance are less frequent compared to motor or health insurance.
