Insurers can alter rates only once in 6 months

As per Insurance Regulatory Development Authority general insurance companies can alter premium rates only once in six months even in a free pricing regime following detariffing. This means that insurers will have to be very careful in pricing as they will not be able to revise rates immediately if they find that their quotes are not competitive or profitable enough. Detariffing has kick-started from January 1, 2007.