Get ready to shell out more for motor, health & fire insurance

You may soon have to shell out more to buy motor, health or fire insurance. Concerned over the high level of losses in general insurance and pressured by a government direction to move further towards market-linked pricing, insurers are planning to raise premiums by an initial 2-5% and further up gradually, sources said. Some of the hike will be inflation-linked, but a major portion will be due to the new pricing strategies adopted by insurers after assessing risks.

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PSU general insurers to set up a common TPA to settle medical claims

State-run general insurance companies are setting up a common third-party administrator to settle medical insurance claims, a  move aimed at trimming their unwieldy claims ratio and boosting profitability.

The claims ratio, or percentage of claims to the premium earned, of these public sector companies in health insurance is over  120% and they blame third-party administrators (TPAs) for their spiraling losses in the segment.

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