Around 36 per cent of Indian households undertake trips for a single objective or other each inside and outdoors the nation.
In order to make offered a common travel insurance coverage item with widespread coverage and policy wordings across the sector, IRDAI has come out with an exposure draft on Guidelines on Standard travel insurance coverage policy. The common item shall have the standard mandatory covers and will be uniform across the market place. One could acquire the Standard travel insurance coverage policy each as an person item and as a group item.
The optional covers are permitted to be supplied along with the common item. The premium could differ across insurers as that will rely on the covers proposed to be supplied. As per the IRDAI note, just about every General and Stand-alone Health Insurer, shall endeavour to offer you this item from 01st April, 2021onwards.
There will be 5 variants below domestic travel and 4 variants below overseas travel.
Domestic travel variants
Travel by any mode of public transport (Within City)
Travel by any mode of public transport (Outside City)
Train Journey
Air-travel
Domestic Tours involving Road, Water, Train and Air travel
Overseas travel variants
Long-term Trip (Students)
Short-term trip (Tours/Leisure)(Covers travel by way of Road, Water, Train and Air)
Multi-trip in the course of policy period (Business)
Coverage only for Travel (Onward & Return)
Category of Cover
Coverage in the Standard travel insurance coverage policy will be primarily based on indemnity and advantage basis. The item will be supplied on an person, family members floater and on group basis.
Policy Period
The policy delivers coverage only in the course of the period of journey below domestic insurance coverage. Both remain and travel are covered below overseas travel insurance coverage below most program variants.
According to IRDAI, the Indian travel market place is a single of the greatest in the globe. As per reports, about 36 per cent of Indian households undertake trips for a single objective or other each inside and outdoors the nation. While it is critical that just about every travel undertaken shall be a protected journey, there is a require to make just about every trip a secured journey by giving appropriate security net.
Though, there are a quantity of travel insurance coverage solutions offered in India, the penetration of travel insurance coverage is but to take off. Further, every item has exclusive characteristics and the insuring public could discover it tricky to select an acceptable item. In order to deepen the penetration of travel insurance coverage, which shall provide security net to just about every person who is undertaking travel, it is thought of critical to have a common travel item.