General insurers line up additional features in travel insurance OF those travelling abroad on a holiday, not more than 30% take a holiday insurance policy
TRAVEL insurance policies that cover medical expenses, baggage delay and passport theft are passé. General insurance companies are trying to outdo each other in coming up with travel insurance policies with additional features such as hijack distress allowance, arrangement of doctor appointment, repatriation of mortal remains and home burglary coverage, among others.
Travel insurance is still a nascent segment in the general insurance business in India. It is taken more out of compulsion, largely by people who travel abroad to visit their children or relatives. As for those travelling abroad on a holiday, people buy it if their travel agent has a tie-up with a firm, because insurance is still seen as expenditure in India rather than an investment, industry members say.
Of those travelling abroad on a holiday, not more than 30 per cent take a holiday insurance policy.
And those who travel to South East Asian countries such as Singapore and Malaysia do not bother much to buy a policy.
Instead of going for a policy with a cheaper premium, one should look at policies that offer highest reimbursement towards personal accident, loss of passport, checked baggage delay and dental care expenses.
"One could also look at additional benefits such as cover for missed flight connection, trip cancellation and compassionate visit where the return fare of a family member is reimbursed, in case the insured is hospitalised for more than seven days," Kumar added.
Many insurance policies do not cover eventualities arising out of taking up adventure sports while few others such as Chola MS and Iffco-Tokio provide the cover with a small additional premium amount. Many insurers also provide emergency cash in case the traveler loses money due to theft.
Most travel insurance policies are targeted only at customers travelling abroad. Very few such as Bajaj Allianz's Swadesh Yatra and Tata AIGs Domestic travel Guard policy target domestic travels and cover expenses like lost rail/air ticket reimbursement, arrangement of doctor appointments, arrangement of hospital admissions "Travel insurance constitutes hardly 1 per cent of the insurance market in India. However, considering that the overall insurance market in India has touched Rs 50,000 crore mark in India in 2010-11, 1 per cent of that sum is still big and insurance firms would not want to miss that opportunity.
