Householder policy premiums fall 35-50%

The next time you buy a householder's insurance policy, you could be paying premiums that are 35 to 50 per cent lower. This is the result of the de-tariffing or lifting of price controls on insurance policies from January this year.  

Thanks to the growing competition, the four public sector insurers, which account for over one-third of the market, are working hard to retain customers and win new ones by halving premiums for customers with a good claim record.  

The dozen private non-life insurers have, however, cut premiums only 10 to 15 per cent for individuals and housing societies.  

"The discount on a householder's insurance policy is more than 35 per cent," said V Ramasaamy, chairman and managing director of National Insurance, India's second largest general insurance company.

SAFE AS HOUSES What the householder's policy covers
Section 1	Fire and Allied Perils*
Section 2	Burglary
Section 3	All risks
Section 4	Plate Glass
Section 5	Breakdown of domestic appliances
Section 6	TV Set
Section 7	Pedal Cycles
Section 8	Baggage Insurance
Section 9	Personal Accident
Section 10	Public Liability
*Compulsory

An official of Delhi-headquartered Oriental Insurance added that in addition to an annual policy, it is offering a four-year householder's policy.

Oriental Insurance's new policies are a case in point. The insurer is offering a 25 per cent discount on the basic policy plus an in-built discount of around 7.5 per cent, if you buy the policy for more than two years.

There is also a loyalty discount of 5 per cent in the first year, 10 per cent in the second year and 15 per cent from the third year on, provided there are no claims. Oriental offers a further discount of 10 to 15 per cent if you choose more than four sections.

Private sector companies like Bajaj Allianz and ICICI Lombard claim that reducing the premiums by more than 10 or 15 per cent is difficult.

Said T A Ramalingam, head of underwriting, Bajaj Allianz Non-Life: "Householder's policy is profitable for the public sector so it can be aggressive on pricing. We cannot do so because our risk perception of this business is different."