Insurance news update

The insurance sector is undergoing major shifts in 2025, with new regulations, digital innovations, and policy updates impacting customers. Here’s a roundup of the latest insurance news you need to know today.

1. IRDAI’s New Rules for Health Insurance

The Insurance Regulatory and Development Authority of India (IRDAI) has introduced new guidelines to make health insurance more customer-friendly:

✅ No Claim Bonus (NCB) Protection – Policyholders can now retain their NCB even if they switch insurers.
✅ Easier Pre-Existing Disease (PED) Coverage – Waiting periods reduced for certain chronic illnesses.
✅ Standardized Claim Forms – Simplified paperwork for faster claim settlements.

Impact: Better flexibility and transparency for health insurance buyers.

2. Surge in Cyber Insurance Demand

With rising digital frauds, cyber insurance policies are seeing a 40% increase in demand compared to last year. Companies and individuals are opting for coverage against:

🔹 Phishing attacks
🔹 Ransomware threats
🔹 Data breach liabilities

Tip: If you frequently transact online, consider a cyber insurance add-on with your home or business policy.

3. Motor Insurance Premiums Set to Rise

Due to increasing repair costs and accident claims, third-party motor insurance premiums may increase by 10-15% in the coming months.

🔴 Electric vehicle (EV) insurance remains cheaper due to government incentives.
🟢 Usage-based policies (Pay-as-you-drive) gaining popularity among low-mileage drivers.

What to do? Renew your policy before the hike kicks in.

4. LIC’s New Guaranteed Return Plan

Life Insurance Corporation (LIC) has launched “Jeevan Suraksha 2025”, a non-linked savings plan offering:

✔ Guaranteed returns of 6.5% p.a.
✔ Flexible premium payment terms
✔ Tax benefits under Section 80C

Best for: Risk-averse investors looking for stable returns.

5. AI-Powered Claim Settlements Grow Faster

Insurers like HDFC Ergo, ICICI Lombard, and Bajaj Allianz are using AI-driven claim processing, reducing approval times from days to just hours for:

📌 Cashless health claims
📌 Motor insurance repairs
📌 Travel insurance reimbursements

Future trend: More insurers will adopt AI for instant settlements.

Should You Review Your Insurance Policies?

With these rapid changes, it’s a good time to:

✔ Compare health insurance plans for better NCB benefits.
✔ Check cyber insurance options if you’re digitally active.
✔ Renew motor insurance early before premium hikes.
✔ Explore LIC’s new plan if seeking guaranteed returns.


Final Thoughts

The insurance industry is evolving fast, with more customer-centric policies, digital upgrades, and new risks like cyber threats shaping the market. Stay updated to make the best financial decisions!

What’s your take on these changes? Are you planning to switch policies? Let us know in the comments!

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