Bangalore: Fall in value of the Indian rupee is pressurizing major insurance firms to increase their premiums, as reported by Digbijay Mishra of the TNN. This has instigated big firms to approach Insurance Regulatory Development Authority (IRDA) to make the required reforms in their premiums.

The money claimed by policy holders for outbound travel cover is paid in foreign currency by insurance firms. This premium, however, is collected in rupees in India. Insurance firms are feeling the pressure right now as the Indian rupee has dipped by more than 5 percent this year against the U.S. dollar. This has led to the Indian rupee being labeled as the worst performer among Asian currencies.

Sanjay Datta, Head of Underwritings and Claims at ICICI Lombard, says that most big insurance firms are going to approach the IRDA to update their policy rates. He quotes, "The rupee fluctuation has been a matter of concern for us as far as travel portfolio is concerned. Most probably, we will approach IRDA to hike premium charges soon."