Insurance Stocks Gain As Govt Considers Raising FDI Limit in Insurance Companies

Insurance stocks gain as Govt considers raising FDI limit in insurance companies.

 

INSURANCE 

Why do insurance companies add premium charge for tobacco users.

Smoking Can Cost You Heavily: As per the World Health Organization (WHO), Indians account for over 12% of the world’s smokers. With the repercussions of smoking being rather well-known, life insurance companies also actively try to hedge themselves from the higher risk by increasing rates for tobacco users. 

 

Many insurers consider the higher risks associated with smoking when adding a premium charge for tobacco users.

 

Click here for a useful comparison between the premiums of a smoker vs a non-smoker by three leading insurers providing term insurance of INR1cr life cover for a 30-year-old, covering age till 70 years.

 

Applying for a health insurance? Here is a handy primer of some baffling health insurance terminologies.

Insurance stocks gain as Govt considers raising FDI limit in insurance companies.

Cheers of Joy: Share prices of insurance companies today hiked 2-8% on the back of news that the government is considering raising the limit for foreign direct investment (FDI) in insurance companies to 74%. 

 

Currently, FDI in the insurance sector is capped at 49% under automatic route, including for insurance broking, insurance companies, third party administrators, surveyors, and loss assessors. 

 

Hit Refresh: Finance Minister Nirmala Sitharaman in the July budget had announced that the government will examine suggestions from various stakeholders to further open up FDI in the insurance sector. ET Insure

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