General insurance cos seek IRDA approval to hike travel insurance premium on rupee fall

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General insurers seek IRDA nod to hike travel insurance rate
General insurance companies have sought approval from IRDA to increase the travel insurance premium due to the fall in the rupee, industry sources said according to PTI. The premium of marine insurance is also likely to be increased on the back of the rupee fall, they said.

"We have gone to Insurance Regulatory and Development Authority (IRDA) to increase the premia in the travel insurance segment due to the rupee depreciation," an official of a private general insurer told PTI.

The travel insurance segment, a growing category thanks to overseas travellers, has seen a rise in claim pricing as the majority of the claims are settled in dollars, said the report.

"As the rupee has depreciated by around 20 per cent against the dollar since April, claim cost has increased for insurers as most of the claims are settled in dollars," another official from a large private insurer said.

According to insurance officials, around 80 per cent of insurance claims come from health-related issues of travellers overseas, and the rise in premium is inevitable. Referring to the quantum of price rise, they said as the claim costs have risen by over 10 per cent, the premium rise is likely to be in the similar proportion.

Dion Global Solutions Ltd.

Story first published: Thursday, November 21, 2013, 9:10 [IST]
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