Private insurance companies such as Bajaj Allianz General Insurance and ICICI Lombard General Insurance have reduced premium rates for the private car segment by 5-15 per cent. Several more may follow suit in the coming days.
Insurers say they have reduced the premium due to the rolling out of the goods and services tax (GST) and improvement in overall efficiency. According to brokers, premiums were reduced because insurers are saving on costs after introduction of the motor insurance service providers (MISP) circular, which capped distribution commissions.
