Travel insurance premiums likely to go up

Travel insurance premiums may go up with the rupee’s fall putting pressure on the travel insurance portfolios of leading general insurance players. With the devaluation of the rupee, insurance players are they are likely to go to sector regulator — Insurance Regulatory Development Authority (IRDA) — to re-file and restructure the premium charges of their products soon.

The claims for outbound travel insurance are paid by general insurance companies in foreign currencies, while they collect the premium in rupees in India. General insurers are feeling the heat as rupee has now fallen more than five per cent this year against the dollar, making it the worst-performing Asian currency, as per a report by The Times of India.