Can an insurance company increase the amount of premium after the commencement of the policy?
The premiums could vary depending on the changing premium rates, approved by the regulator.
Can an insurance company increase the amount of premium after the commencement of the policy?
Paresh Shah, Ahmedabad
Typically, when you buy an insurance policy, you enter into an agreement with the insurance company. The premium is fixed for the duration of the policy. Normally, as the price is pre-fixed through an agreement, the insurance company cannot increase it later. However, the amount payable by you can increase if the government introduces some changes in the service tax rates or any other such charges. Some policies come with annual renewal, including the change in policy document each year, like car insurance. In such cases, the premiums could vary depending on the changing premium rates, approved by the regulator.