IRDA, India's Insurance Regulatory and Development Authority anticipates that car insurance premiums within the country are likely to rise between 20% and 70% for motor vehicles including trucks and bikes. With the introduction of risk based pricing which uses actuarial based determination prices are set to rise as the insurance system in India evolves.
At the moment third party insurance runs at a loss and third party insurance is mandated for commercial vehicle owners. Insurers share these losses as determined by its market share as a general insurer, in particular public sector insurers who provide it at a loss in contrast to private insurance who are reluctant to. These changes which will force up comprehensive insurance cover with prices moving according to the claims paid by the insurer. Within India many major state owned banks are the provider of insurance products.
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