Insurance Control On Compensation Rates To Bbe Removed

New Delhi: The Insurance Regulatory and Development Authority (IRDA) has come out with a circular to all general insurance companies stating that the control rates on fire, engineering and workmen''s compensation insurance classes shall be totally removed. This is effective from September 1 this year. However, the insurers shall not cancel policies that are in force on September 1 in order to revise the applicable premium rates; where the insured chooses to cancel such insurance, premium shall be retained on short-period scale. The regulator has said that a decision to this effect was taken following the meeting with companies on further relaxation of price controls. The circular further states that the amendments will only relate to the rates and not terms, conditions, warranties, endorsements, clauses and policy wordings. The regulator is expected to issue separate instructions with regard to the review of the above in due course.