Financial Daily from THE HINDU group of publications
Tuesday, Jan 24, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jan 24, 2006 |
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Travel & Places Money & Banking - Life Insurance Marketing - Strategy Tata AIG, ICICI Lombard to launch domestic travel cover Radhika Menon
Mumbai , Jan. 23 PRIVATE insurance companies plan to launch domestic travel insurance covering all modes of transport. Two leading insurers — Tata AIG General Insurance Company Ltd and ICICI Lombard General Insurance Company — will be unveiling their domestic travel insurance products shortly. Mr Khalid Sohail, Head, Travel insurance business, Tata AIG General, said the product would cover most needs of the domestic traveller. It is a round trip cover and can be availed for travel by air, train, bus or car. Besides insurance against death and personal accident, it also covers trip cancellation, baggage loss, riots, natural calamities and contingencies related to a business trip. Interestingly, it also provides for the `compassionate visit' of the spouse or any other family member in case the insured individual falls seriously ill while travelling, said Mr Sohail. Tata AIG General's product is available at a premium of Rs 150-200 and the duration of the trip can begin at four days. It provides for a maximum sum assured of Rs 2.5 lakh with sub limits for various categories such as personal accident, baggage loss and hospitalisation. There are also separate plans for individuals and families. Mr Sudhir Menon, Head, Travel insurance business, ICICI Lombard, said the market for domestic travel insurance although nascent had tremendous potential. "We have been testing the first version of our product and will be launching a fully upgraded insurance product very soon," said Mr Menon. The premium in the case of ICICI Lombard's product is about Rs 200 for seven days and is also available on all modes of transport. The product also insures the traveller's house and its contents while he or she is away. Until now, the only kind of insurance that a domestic traveller could purchase was for air travel and covered the individual against personal accident and death for the duration of the flight. According to Mr Sohail, most people do not buy this cover because they are already covered for accidental death through their credit card, the airline or the employer in case it is a business trip. According to analysts, domestic insurance is sold in developed markets like the US. However, the size of the market is not big because most people are adequately insured with respect to health and life insurance. Both the Indian companies hope to have strategic tie-ups for the distribution of the new product. "With penetration of insurance still low in India and the rate of accidents very high, this product should find takers," said Mr Sohail
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