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Rupee Depreciation Resulting in Car Premium Inclination
- DetailsWritten by PolicyBazaar -
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Modified 05 February 2014
The depreciation of the rupee has effected all Indian sectors and resulted in inflation. Since May, rupee has come down by 20%.Car insurance sector could not stay too far and hence the premium is expected to rise because the cost of imported spare parts is too high. As reported by general insurance players.
Amamath Ananthanarayana, Chief Executive of Bharti AXA General Insurance said that the premiums are likely to rise because the price of car and cost of the spare parts being imported have shown a good hike. Audi, BMW and Mercedes-Benz are some of the companies in this league which import car spare parts and have increased prices of the cars manufactured by them.
Managing Director and Chief Executive of Future General India, Mr. KG Krishnamoorthy said that the claim settlements are sure to shown an increment with the rise in the cost of spare parts. Also the increasing labour cost of about 10-15 percent has led a 15-20 percent rise in the premium. He added that companies are likely to carry forward the price rise from claims to other segments because of the losses suffered during the third-party motor insurance.
Agreeing to this point, K Sanath Kumar General Manager of New India Assurance said that the increase is expected to happen generally in the high-end luxury cars sector and this hike is sure to occur because the submissive demand.
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