- Date : 09/01/2021
- Read: 3 mins
IRDAI intends to make it easier for the general public to choose an insurance policy to cover their travels, as well as increase the penetration of travel insurance in India.
The Insurance Regulatory and Development Authority of India (IRDAI) has recommended the standardisation of travel insurance in the country. This essentially means making available a standard travel insurance product with common coverage and policy wordings across insurance providers.
IRDAI has asked insurers to come up with standard policies by 1 April 2021. According to its draft guidelines, “The standard product shall have the basic mandatory covers as specified in draft guidelines, which shall be uniform across the market. The product may be offered both as an individual product and as a group product.”
How will it help?
Though Indians love to travel, they often overlook the need for travel insurance. Even if it’s affordable, they tend to ignore it. There are two reasons for this. First, they don’t really understand the importance of travel insurance. Secondly, with the market crowded with so many variants from multiple providers, it can be difficult to compare plans and choose a suitable option.
Having a standard travel insurance plan will not only make it easy for the general public to choose a policy to cover their travels, it will also increase penetration of travel insurance in the country.
What will it cover?
The travel insurance policy will cover both domestic and international travel. Under domestic travel, variants will include travel by any mode of public transport within the city, travel by any mode of public transport outside the city, train journey, flights, and domestic tours involving road, water, train, and air travel. Under international travel, there will be long-term trips for students who go to study abroad, short-term trips for holiday goers, multi-trips for frequent business travellers, and coverage only for the travel journey and return.
The standard travel policy will cover the period of journey under domestic insurance, whereas both travel and stay will be covered under international insurance.
What about optional covers?
Optional covers will be allowed to be offered along with the standard travel policy. The premium will vary from insurer to insurer, and depend on the optional covers chosen.
Travel insurance will be offered on individual, family floater, and group basis. There will be no age restriction to get this cover, but the policyholder will have to be 18 or older to buy it. This essentially means that all adults can buy the cover and minors can be covered in the family floater plan bought by their parents or guardians.
Travel insurance comes with tremendous benefits. It provides a safety net to travellers at all times. A standard policy will make travel insurance a popular and responsible choice for Indians. Look at the types of travel insurance coverage in India.