Mumbai, Sept. 8 (PTI): Car insurance premium may rise in the days ahead as the cost of imported spare parts has increased in recent months because of a sharp depreciation of the rupee, say general insurance players.
“Usually, insurance premium is a small percentage of the price of a car. As car prices have gone up because of a rise in the cost of imported spare parts following the rupee fall, the premium may also go up during the time of renewal,” Amarnath Ananthanarayanan, chief executive of Bharti Axa General Insurance, said.
Auto companies such as Audi, Mercedes-Benz and BMW, which use more imported spares than others, have increased prices in the recent months on the back of rising import cost.
“If the costs of spares go up, this will definitely increase the claim settlements for us. Also, if you see on a six-month average, the labour cost has gone up 10-15 per cent for manufacturers. So, a 15-20 per cent rise in the insurance premium is expected,” K.G. Krishnamoorthy Rao, managing director and chief executive of Future Generali India, said.