Saturday, August 10, 2013

Rise In Travel Insurance Claim In India

Indian rupee falling alarmingly against the U.S.dollar, there is going to be a negative impact on the finances on various aspects. One of the fallout's of this phenomenon is related to travel insurance online claims. Industry insiders believe that in the coming times claim settlements related to travel insurance is going to go up by at least 10% if not more. Various general insurance providers share this view. With the beginning of 2013-2014 fiscal years, the devaluation of rupees is gone over 12%. Recently, the Indian rupee showed an all-time low value at Rs. 61.21 per USD.

With SEBI and securities regulators trying their best to check inflation there are surely remains some cause for concern for health travel insurance customers. This sector is going to be hit simply because maximum claim settlements related to this arena deal with dollars. With rupee, devaluing insurance companies have to absorb the claims rise because this is the only measure to stay away from increasing the related premiums.

In medical travel insurance, hospitalization is the main reason for making claims when people travel abroad. So, this is surely going to increase as a direct link to rupee devaluation. In order to understand this better it is necessary to know that there is a difference between making claims on medical travel insurance in India and doing the same thing overseas. Because the medical cost on foreign shores is quite costly, customers have to bear a part of the expenditure themselves. This is in addition to the premiums, which you need to pay.

The reason for this is the delectable associated with travel insurance online. This signifies that you as the policyholder need to bear a significant percentage of the total costs incurred due to untoward happenings when you are travelling overseas. There is a specified figure related to this, and it is mentioned in the company contract. With devaluation of rupees, the associated deductibles are also going to increase in the coming times with the policyholder bearing and increased amount of costs. Sadly, this is the only way for insurance companies to curb rising premiums to be paid, which can place a high financial burden on the customers in the times to come.

The projected rise in claims for the time being is between 8% and 10%. However, the actual costs may raise further deterring many from going for health travel insurance in the future. There is no doubt regarding the fact that when you are on foreign shores, travel insurance may seem like a helping hand to many. It can lighten up your financial burden when the unpredictable happens.

Incipient inflation is going to undermine the associated benefits of medical travel insurance in the coming times. With a rise in claims, the financial part be borne by the policyholder is also going to increase significantly. This is going to deter customers from making claims, especially those related to small amounts.

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