The premium collections of Reliance General Insurance have dipped by 16.38% in the financial year 2010-11 over the previous year.
As per the latest insurance business figures released by Insurance Regulatory and Development Authority (IRDA), Reliance General Insurance has collected only Rs. 1655.43 crores during FY 2010-11 as compared to Rs. 1979.65 crores in FY 2009-2010.
Amongst all the general insurance companies, Reliance General is the only insurance company that has registered a fall in its premium collections over the last year.
In the past, customers of Reliance General faced several issues concerning the premium rates. The company had initially launched its health insurance product at very low premium rates in an effort to boost its market share. Reliance Healthwise policy was one of the cheapest health insurance policies available in 2006 due to which a large number of customers bought this policy. However, in 2010 with the approval of IRDA, Reliance General revised the premium rates drastically. The jump in premiums was so high that many customers who had paid an annual premium of Rs.3,300 odd for the first two years received the renewal premium intimation of approx Rs.13,000. A few customers also complained of a revision of as high as 5 times their existing premium.
Due to the unjustified increase in the premium rates, over 3 lakh customers were left with no choice but to either pay the increased renewal premiums or discontinue their policy.
IRDA has introduced ‘Health Insurance Portability‘ which will be effective from July this year. Insurance markets are getting very competitive and once the health insurance portability kicks in, there is bound to be a battle between health insurance companies to gain maximum market share. Customers however will get an opportunity to cheer as this will put them in the front seat. Policyholders will be able to freely switch their health insurance policy to an insurance company of their choice.
