Insurance (car, home) in India to become cheaper

Insurance in India is set to become more price competitive, thereby taking less out of your financial planning budget.

IRDA, the insurance regulator had freed the pricing regime for general insurance products (car, home, fire etc) on 1 Jan 2007. This led to massive discounts by insurance firms. The regulator then stepped in and capped discounts at 51%.

Cap is being removed wef 15 November 2007, which should see massive price competition reducing premiums steeply. Competition is good !