Oriental, United India to refund excess vehicle premiums
18 November 2002
Kochi: Oriental Insurance Company and United India Insurance Company have also started refunding the excess insurance premiums charged for vehicles, almost a week after the other two public sector general insurance companies, New India Assurance Company and National Insurance Company, implemented the Insurance Regulatory and Development Authority (IRDA) order.
In view of the mounting complaints from motor vehicle owners, IRDA had, on 28 October 2002, asked general insurance companies to repay the loading of 100-per cent premiums for motor vehicle insurance.
Insurance company officials say they have received orders from their respective corporate offices not to fix loading on to the premiums. However, the premiums that had been hiked earlier from 8 to 40 per cent on vehicles of various categories will continue.
The companies, in the meantime, are wondering how to recover the commission paid to agents. While there is no commission on a third-party insurance amount, the companies pay commissions for comprehensive and own damage insurance cover.