Why Do You Think The Premium Of Other Insurers Are So Less:-
I went through the entire process of LIC, how they calculate their premiums. They take the mortality rates from government data. Their statistical data is all derived with view to provide the maximum coverage possible at the minutest premium. But still how private players are giving policy at lower premium. This is why :-
You can see clearly that LIC has best claim settlement ratio in comparison to other private players. This is because while LIC is a corporation other are privately held companies. For LIC the goal is welfare for others it is profit. But then why private insurers can give low premium rates for their risk. It is because they litigate more and settle less.
The same has been observed by many consumer courts throughout the country, that private players are more indulged in litigation to delay payment and thus adjust risk in between.
For further details see http://insuranceconsumerprotect.blogspot.in/
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