homevideos Newspersonal finance NewsInsurance regulator reduces obligatory premium to GIC Re to 4% from 5%
Insurance regulator reduces obligatory premium to GIC Re to 4% from 5%
The insurance regulator has decided to cut down the obligatory premium, which goes to the General Insurance Corporation of India (GIC Re), they have cut it down to 4 percent from the existing 5 percent. This 5 percent has been going on since 2005- 2006 but now from an FY23 as an applicable year that reinsurance obligatory premium will be cut down to 4 percent.
The insurance regulator has decided to cut down the obligatory premium, which goes to the General Insurance Corporation of India (GIC Re), they have cut it down to 4 percent from the existing 5 percent. This 5 percent has been going on since 2005- 2006 but now from an FY23 as an applicable year that reinsurance obligatory premium will be cut down to 4 percent.
What is obligatory premium? Obligatory premium is the mandatory premium shared by general insurance companies with GIC Re on every policy which is sold.
Any policy or motor policy, health insurance policy, accident cover, every insurance policy which is sold the premium with general insurance companies received 5 percent so far was to be shared with GIC Re on a mandatory basis now that will be 4 percent.
Watch the accompanying video of CNBC-TV18’s Yash Jain for more details.
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