Can an insurance company increase the amount of premium after the commencement of the policy? Typically, when you buy an insurance policy, you enter into an agreement with the insurance company. It is a fixed price (premium amount) that you agree to pay in order to remain insured for the term of the policy. Thus, such a price (or the premium amount) is pre-fixed through an agreement and the insurance company cannot increase the same later. However, although once fixed the premium on a policy cannot be changed, the amount payable by you can increase with the levy of taxes by the government; for instance, due to the introduction of service tax on life insurance policies.
