Insurance claim to be raised to Rs 2,500 crore from Rs 1,500 crores in new ‘living wills’
The Centre is raising the amount of insurance claims from the existing amount of Rs 2.25 lakh to Rs 1.25 crore, a move that will boost the number of beneficiaries to 1.75 crore.
Sources in the Reserve Bank of India told ET that the decision will ensure that insurance claims will be paid on time and in full.
The decision, which will come into effect from July 1, will be a relief to millions of Indians who had taken out life insurance policies before the financial crisis.
Insurers had already been under pressure to pay more to cover losses in the crisis, especially after insurers said they could no longer afford to cover people with chronic conditions such as asthma.