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Car insurance premiums may rise due to weak rupee

The Indian currency has depreciated more than 20% since May and is hovering around 65 per dollar as of now

September 11, 2013 3:01 IST | India Infoline News Service
General insurance companies said that car insurance premiums may rise in the coming days due to the rise in cost of imported spare parts, according to a media report.

The general insurers said that because of the sharp depreciation in rupee, the cost of imported spare parts has increased, the report said further.

The Indian currency has depreciated more than 20% since May and is hovering around 65 per dollar as of now.

Car companies like Audi, Mercedes-Benz and BMW among others, which use more imported spares than others due to their lower localisation, have increased prices in the recent months because of rising import cost due to sharp rupee fall.

General insurers also said that given the losses incurred on the third-party motor insurance segment, companies are most likely to pass on the rise in claim cost to end-consumers in other segments like car insurance as well, the report further said.

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