IRDA ALLOWS COs TO CANCEL POLICIES IN DE-TRIFFED REGIME

Insurance Regulatory & Development Authority (Irda) has allowed companies to cancel their existing policies and buy new ones to take advantage of cheaper pricing, expected after de-tariffing of general insurance products from January 1, 2007. The premium paid by 15 million corporate clients across all segments is currently pegged at around Rs.10,000 crore. The existing corporate policy can be cancelled by paying a small fine by the policy holder.