The awareness of travel insurance has increased since the start of the Covid-19 pandemic, according to a study by Go Digit General Insurance. The study, which analysed Digit data across all travel insurance products between April 2019 and March 2022, revealed a spike in demand for travel policies in FY21-22 compared to pre-Covid levels in FY19-20.
The findings show that In addition to increased awareness for travel insurance, FY22 saw lingering fear of another Covid-19 wave, which encouraged more travellers to buy an insurance policy.
“From 6.4 lakh policies in FY20, the company sold over 12.8 lakh travel policies in FY22, a jump of over 100%. The small drop in demand in FY21 can be attributed to the harsh second wave that proved to be more deadly compared to the first,” it said.
In the first 4 months of 2022, the company has already sold 75 per cent of the total number of travel policies it sold throughout FY21. “This could well be an indication of more Indians finally getting on to that flight, but with the necessary insurance cover,” the study said.
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The demand for travel policies was highest in February this year, indicating most people travelled in this month.
The top three flight routes for which travel policies were purchased included Mumbai-Delhi, Delhi-Mumbai and Bangalore-Delhi.
The demand for single-trip policy zoomed 215 per cent in FY 22.
“In FY22, Digit sold nearly 11.7 lakh single-trip travel policies, an increase of 215% over FY21. In the financial year ending March 31st 2021, the number of single-trip travel policies sold by the company was lower compared to FY20. The drop can be attributed to the pandemic, which discouraged all forms of non-essential travel in addition to travel advisories and other restrictions,” the study said.
Top reasons for travel claim
All risk cancellations, flight cancellations by the operator, booking amendments, and flight delays by the operator were the top causes for travel claims.
Compared to FY20-21, FY21-22 saw 3.5x more claims due to flight delays. However, when it comes to claims due to flight cancellation*, the number was 3.5x higher in FY20-21.
What travel insurance covers
Travel insurance policy generally provides cover for medical assistance, cancellation cost, loss of passport, baggage loss and flight delay