New India Assurance raises premium on mediclaim policy

NEW DELHI: New India Assurance Company, the country's largest non-life insurer, has enhanced premium on mediclaim policy to bring down the growing losses in the segment.

Worsening of the claim ratio in respect of mediclaim policies from 102 per cent in 2003-04 to 128.71 per cent in 2005-06 forced the company to revise the premium rates upward in order to reduces the losses, Minister of State for Finance P K Bansal told Lok Sabha on Friday in a written reply.

The new rates of revised mediclaim policy has become effective from Thursday, he said.

Based on the region-wise claim experience of the mediclaim portfolio, the company has divided the country into three zones with varying premium rates, he said. Mumbai comes under zone I, Delhi and Bangalore fall under zone II and the rest of India falls under zone III.

Replying to another question, Bansal said, 68,205 pieces of counterfeits currency notes amounting Rs 1.5 crore were detected in the first six months ended June 2007.

Notes in circulation as June 29, 2007 is Rs 5,07,364 crore, he said, adding the quantity of counterfeit notes is minuscule as compared to the total volume of Indian Bank notes in circulation.

Bansal said, 118 companies were referred to the Board for Industrial & Financial Reconstruction in 2006 as compared to 180 companies in the previous year.