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General insurance companies have sought approval from the Insurance Regulatory and Development Authority (Irda) to increase the travel insurance premium due to the fall in the rupee, industry sources said. The premium of marine insurance is also likely to be increased on the back of the rupee fall, they said.
The travel insurance segment has seen a rise in claim pricing as the majority of the claims are settled in dollars.
"As the rupee has depreciated more than 15 per cent against the dollar since April, claim cost has increased for insurers as most of the claims are settled in dollars," an 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.
