Travel Insurance Premium Likely to Rise

With the depreciation seen in rupee’s value, general insurance companies are likely to raise the premiums of travel insurance. These insurance players are likely to go to insurance regulator IRDA to restructure the premium charges of travel cover.

Generally, the claims of outbound travel insurance are paid in foreign currencies while collect the premiums in Indian rupee. General insurers are feeling the pressure of depreciating rupee which has fallen more than 5% against dollar in this year, resulting in a worst performing Asian currency.

The April-June quarter is considered the best quarter for travel insurance segment as it pegged at around Rs.250 crore. At this time, analysts expect that rupee could be down at 60-mark in future.

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