Letter of inability to reduce the rate of insurance cover



Letter of inability to reduce the rate of insurance cover

New India Insurance Company,
Prem Nagar Branch,
Ambala.

Our Ref : NEC/15/7-3
Your Ref : PRI/246/E of March 23, 2019
April 1, 2019

The Manager,
Pearl Rubber Industries,
10, Industrial Estate,
Ambala.

Dear Sir,
Reg. : INSURANCE RATES

We regret to state that you are under the impression that the rate of 15 paise per cent quoted for the insurance of your business premises is excessive. We take this opportunity that the rate is a general one adopted by all the insurance companies. The rates have been raised uniformly by all companies recently because the incidence of fire and theft has increased. Therefore, no other alternative was possible than to increase the rate of insurance cover.

It is surprising that you have been able to cover your premises at the old rates. It is, however, a tempting offer that you have offered in the form of such a huge business but we are not in a position to reduce the rate of insurance cover because it is not commercially viable.

Thanking you,
Yours faithfully,

for New India Insurance Company
Manager