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Court rules against pharmaceuticals over high insurance rates

Prescription drugs in India

The High Court of Delhi has dismissed a complained filed by pharmaceutical companies against reinsurer General Insurance Corp. of India protesting steep increases in insurance rates, The Asian Age reported. Vibhu Bakhru, a judge at the high court, said that GIC Re is entitled to determine the rates at which it offers reinsurance according to risks covered by insurers. GIC Re had recently told insurers to quote higher premium rates to companies in eight sectors including plastics, textiles, chemicals, steel plants and thermal power plants due to the high volume of claims.

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