Travelling has changed post pandemic. It now comes with that lingering fear of catching Covid-19, which could mean an extended stay or even hospitalisation in a foreign land throwing travel plans upside down. This is the reason that more people are buying travel insurance policies than before.
“We have witnessed a healthy growth in international travel insurance policies from the pre-pandemic levels which is about 22 per cent. Domestic travel insurance is still nascent in India considering that many customers already have health insurance policies and also personal accident (PA) covers,” says Sourabh Chatterjee, Senior President & Head-IT, Web Sales, Travel, Bajaj Allianz General Insurance.
Travel insurance has evolved since the onset of the Covid-19 pandemic. According to Go Digit General Insurance, in the first four months of 2022, the insurer sold 75 per cent of the total number of travel policies it sold throughout FY21 given the increased awareness.
Digit General Insurance sold over 12.8 lakh travel policies in FY21-22, a jump of over 100 per cent compared to the pre-Covid year of FY19-20. The analysis also revealed that demand for single-trip policies zoomed 215 per cent in FY21-22 over FY20-21. In FY22, the company sold nearly 11.7 lakh single-trip travel policies, an increase of 215 per cent over FY21.
Vivek Chaturvedi, Head of Direct Sales and Chief Marketing Officer, Digit Insurance said, “Trip cancellation, and flight cancellations and delays have always been leading causes for travel claims. Events such as bad climatic conditions, change in travel plans and on-time performance of airlines, among other causes can affect travel plans. Before Covid-19, travel insurance was not looked at seriously, especially by domestic travellers. However, more Indians are now buying travel insurance to ensure unforeseen hiccups don’t disrupt their itineraries. The category has also evolved over the last few years with some insurers now offering innovative and need-based products. In the coming years, travel products are set to become more dynamic, opening up the segment further.”
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today