Money & Banking

Travel insurance gaining mileage

Anjana Chandramouly Bangalore | Updated on November 15, 2017

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Mr Nasir Merchant of Mumbai took his family to South-East Asia on a 10-day holiday this summer. An annual holiday is nothing new for the family, but what was different this year was the travel insurance cover that it took.

This year, many travellers like Mr Merchant are opting for travel insurance, thanks to a growing awareness, say general insurers. There has been a good demand since March this year, says Mr Vikramjeet Singh, Head - Travel Insurance, Bajaj Allianz General Insurance.

People going to Asian countries for 5-7 days would not buy travel insurance earlier, but we have seen an increase in demand from this segment also, he adds. For Bajaj Allianz, travel insurance premiums grew 25 per cent last year.

The April-June quarter is usually the best for the travel insurance segment, points out Mr Sanjay Datta, Head - Underwriting and Claims, ICICI Lombard GIC. Though the corporate travellers form a bulk of business, demand from leisure travellers is also growing now, he says.

Premium payable

“Compared to the total expenditure incurred on a foreign trip, the premium for a travel plan is very low,” says Mr Singh. Mr Datta adds that in India, unlike the West, travel insurance also includes medical cover.

The premium for travel insurance is dependent on the traveller's age, duration of the stay and destination. For instance, a 40-year-old on a 10-day trip to Europe would pay a premium of about Rs 700, while the same person would pay 30-40 per cent more for a trip to the US.

With the outbound travel segment expected to increase in the coming years, the growth opportunities for travel insurance are huge, says general insurers. “We expect a 20 per cent growth this year for the travel insurance segment,” says Mr Datta.

>anju@thehindu.co.in

Published on April 24, 2012

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