Insurers are indicating that term rates for life policies could rise 15-20% with effect from April because of higher reinsurance costs, according to local media.
Insurance companies in India are also more likely to insist of health checks, due to the fact that medically underwritten policies tend to attract relatively lower reinsurance costs, according to the Times of India.
Premiums on term insurance policies have dived more than 50% since liberalisation. Companies have offered term insurance of up to INR10m ($135,000) at a premium of INR6,000, which is considered low, as the market saw insurers engaging in a price war.
Insurers in the country previously accepted proposals without insisting on medical checks, according to the report, based on the assumption that those who are wealthier are better placed to take care of themselves or have access to medical treatment, and therefore reducing the risk of mortality.