IRDAI on Tuesday withdrew general insurers’ ability to provide add-on coverage, extending to a period of 12 months or more, for covering corporates for fire, industrial risk and others. This move comes close on the heels of GIC’s decision to hike insurance rates in 42 sectors.
Automatic extensions allow policyholders to enjoy the benefits of the base policy cover for a specified period, with the insurer charging them on a pro-rata basis and with the terms and conditions for add-on the same as the base cover.
