IRDA to come out with a new mortality index next year

Kolkata, Jun 13 (UNI) With the life expectancy rate in India on rise, Insurance Regulatory Development Agency(IRDA) will come out with a new mortality index in 2008.

Currently the private insurance companies follow a Mortality Index created by Life Insurance Corporation of India in 1994.

Recently, Mortality and Morbidity Investigation Bureau(MMIB), a joint venture of the Life Insurance Council, representing life insurance companies, and the Actuarial Society of India, had mentioned in its report that the insurance companies should reduce their mortality charges as the current index used by insurance companies was not upto date.

Speaking to mediapersons today on the sidelines of a press conference, Birla Sun Life Insurance Vice-President Fabien Jeudy, who is also the Chief Actuary in the company, said IRDA has started survey on this. The organisation has started data collection and aims to come out with the new index by next year.

''The mortality charges on the insurance products should come down in the next two to three per cent,'' Mr Jeudy said adding BLSI is also working that direction.

The basic objective of MMIB was to study the recent trends in and acquiring more data and information on mortality, morbidity and other specific risk-related contingencies in life insurance.

UNI