Irda plans new mortality rates, life insurance to get cheaper

Life insurers may charge you less premiums from the next financial year as the Insurance Regulatory and Development Authority (Irda) plans to release new mortality rates.

In an industry forum, Irda chairman J Hari Narayan said the table has been finalised and indicated that premiums may come down as life expectancy has gone up for most of the categories.

At present, life insurance premiums are based on the last Irda data of 1994-96, modified in line with insurers own risk assessment. The new mortality table will be based on 2004-2008 data. The average life expectancy has improved from 60 years in 1996 to 65 years in 2011.