Regulator Irda has indicated that the premium in the case of a "catastrophe insurance" may go up in light of a number of natural disasters hitting various parts of the country in the recent past.
"The general insurance industry on a whole is not making a lot of money. It requires some base correction in premium rate, especially in a case like the recent heavy rains in Chennai, which resulted in a huge loss," Irdai Chairman T S Vijayan said here today.
He was interacting with reporters on the sidelines of a global conference of actuaries.
"Suppose a disaster takes place in a desert... There may not be much of loss. The Hudhud cyclone (in 2014) didn't enter the Vizag city. Had it entered the city, the loss would have been much bigger. Hence, a base correction in premium rate is required in the catastrophe insurance sector and I'm sure insurers must be looking into it," he said.
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