Travellers will be able to choose a standard travel insurance product from April 1, 2021, as the insurance regulator has brought out guidelines for such plans.
Travel insurance is one of the least penetrated insurance segments in India. This insurance is typically only purchased for travel to places like the United States where emergency medical procedures are expensive and Europe where the Schengen visa mandates travel insurance.
IRDAI said that all general insurance companies should offer this product to their customers.
In the domestic travel segment, there will be five plans (A, B, C, D and E) which will cover train, bus, water transport and flight transport.
Here, the mandatory benefits include accidental hospitalisation expenses (Rs 2 lakh), accidental death (Rs 10 lakh cover), permanent total disability of Rs 10 lakh per person (partial will be Rs 5 lakh cover), and repatriation of mortal remains, which includes Rs 50,000 expense and ambulance charges of Rs 2,000.
The optional benefits include hospital cash of Rs 1,000 per day (up to seven days), missed flight/train expense of Rs 10,000, and carrier cancellation (flight) of Rs 10,000.
Interested travellers can also buy trip cancellation (due to a pandemic or natural calamities) option of Rs 1 lakh coverage, that will be based on indemnity (actual expense).
When it comes to overseas travel insurance, the mandatory coverage includes hospitalisation ($100,000 or equivalent for accident/sudden illness), accidental death (up to $10,000), repatriation of mortal remains ($ 10,000) and total disability of $ 10,000 (partial will be $5,000).
There are four variants in this; international travel insurance for students' short-term leisure trip, multi-trip covers for business travel and coverage only during the travel period (onward and return).
Optional benefits include automatic trip extension, loss of passport, bounced airline/hotel booking, flight delay (beyond 3 hours) and trip cancellation due to pandemic/natural calamities.