Business Standard

Fire insurance premium may rise after July 1

IANS  |  Kolkata 

The premium for fire may increase from July 1, as companies may revise prices of their products based on the reference rates prepared by the Information Bureau, an official said on Sunday.

Promoted by regulator, Regulatory Development Authority of India, the Information Bureau of India prepared burning cost 'referral' rates varying across different occupancies and these rates are applicable from July 1, according to Bureau's CEO Kunnel Prem.

"Information Bureau provides data and referral rates for different types of occupancies. Based on the data, companies are expected to revise the rates, or companies having better experience in an occupancy may opt for their rate. However, there could be an increase in fire premium," Assocham's Council Chairman and National Insurance's General Manager K.B. Vijay Srinivas told IANS.

However, it is not mandatory for the companies to adhere to the reference rates provided by the bureau, he said.

According to officials, occupancies in sector refer to products, a sector or class of asset and different occupancies carry different risk of loss, officials said.

The objective of preparing the reference rates is burning cost should be in proportion to premium so that a company does not make loss.

According to the revised data, the number of occupancies has been increased from 85-90 to 101 as new industries have come up, Prem said.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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