The standard travel insurance policy will have the basic mandatory covers and will be uniform across the market.
Around 36 per cent of Indian households undertake trips for one purpose or other both within and outside the country.
In order to make available a standard travel insurance product with common coverage and policy wordings across the industry, IRDAI has come out with an exposure draft on Guidelines on Standard travel insurance policy. The standard product shall have the basic mandatory covers and will be uniform across the market. One may purchase the Standard travel insurance policy both as an individual product and as a group product.
The optional covers are allowed to be offered along with the standard product. The premium may vary across insurers as that will depend on the covers proposed to be offered. As per the IRDAI note, every General and Stand-alone Health Insurer, shall endeavour to offer this product from 01st April, 2021onwards.
There will be 5 variants under domestic travel and 4 variants under overseas travel.
Domestic travel variants
Travel by any mode of public transport (Within City)
Travel by any mode of public transport (Outside City)
Domestic Tours involving Road, Water, Train and Air travel
Overseas travel variants
Long-term Trip (Students)
Short-term trip (Tours/Leisure)(Covers travel through Road, Water, Train and Air)
Multi-trip during policy period (Business)
Coverage only for Travel (Onward & Return)
Category of Cover
Coverage in the Standard travel insurance policy will be based on indemnity and benefit basis. The product will be offered on an individual, family floater and on group basis.
The policy provides coverage only during the period of journey under domestic insurance. Both stay and travel are covered under overseas travel insurance under most plan variants.
According to IRDAI, the Indian travel market is one of the biggest in the world. As per reports, around 36 per cent of Indian households undertake trips for one purpose or other both within and outside the country. While it is essential that every travel undertaken shall be a safe journey, there is a need to make every trip a secured journey by providing suitable safety net.
Though, there are a number of travel insurance products available in India, the penetration of travel insurance is yet to take off. Further, each product has unique features and the insuring public may find it difficult to choose an appropriate product. In order to deepen the penetration of travel insurance, which shall provide safety net to every individual who is undertaking travel, it is considered essential to have a standard travel product.