The Insurance Regulatory and Development Authority of India (IRDAI) has directed the insurers to correct anomalies in product pricing after careful analysis of the underwriting practices and make things easier for policy holders.
“The (insurance) companies need to correct aberrations that exist in terms of adequate pricing based on scientific analysis of claims,” Senior Joint Director of IRDAI Suresh Mathur said while speaking at a insurance summit in Kolkata organized by the Bengal Chamber of Commerce and Industry recently.
“It is also important for the industry to take a collective call to correct the aberrations that exist in terms of pricing…. This is one area where the industry needs a concerted effort to price risk and look at underwriting practices,” he added. Insurers have so far been maintaining a register of policies and claims, in accordance with the provision of the insurance Act 1938. However, post amendments the Act has facilitated maintenance of such a register in electronic form too.
