India's travel insurance has seen a 43 percent year-on-year surge with 11,979 policies sold between January and October 2025, particularly driven by first-time flyers and short-haul leisure travellers, according to Niyo, a travel insurtech startup.
Furthermore, 63.8 percent of trips abroad were by solo travellers, particularly led by GenZ (45.92%), millennials (45.76%), and Gen X (8.36%), while 19.93 percent comprised couples, 12.26 percent family, and 4.1 percent of group travellers.
“Travellers, especially younger ones, are actively choosing it even for short-haul Asia. This is a major behaviour shift and a sign of growing financial maturity. Indians are increasingly realising that a single medical emergency or flight disruption abroad can translate into significant financial loss without insurance,” said Vinay Bagri, Co-founder and CEO of Niyo.
Popular sum insured amount opted for international travel
| Insurance Range | Share (%) |
|---|---|
| Rs 50,000 | 86 |
| Rs 1 lakh | 9.85 |
| Rs 5 lakh | 2.37 |
| Rs 2 lakh | 1.79 |
The report further revealed that 86 percent of travellers opted for Rs 50,000 cover, even for short, low-budget international trips. Furthermore, 9.85 percent bought travel insurance with a sum insured amount of Rs 1 lakh, followed by Rs 5 lakh by 2.37 percent, and Rs 2 lakh by 1.79 percent travellers.
Citizens from Delhi led the insurance adoption for international travel with 25.62 percent YoY growth, followed by Bengaluru (21.23%), Mumbai (17.58%), Hyderabad (10.16%), Chennai (5.98%), Kolkata (5.42%), Pune (5.6%), Ahmedabad (4.35%), Jaipur (2.37%), and Goa (2.23%).
It noted that there’s been a consistently high insurance adoption for travellers visiting the United States, driven by medical costs and travel disruptions.
| Country | % |
|---|---|
| UAE | 24.79 |
| Thailand | 19.97 |
| UK | 10.68 |
| Kazakhstan | 8.9 |
| Uzbekistan | 7.3 |
| Malaysia | 6.11 |
| Singapore | 5.81 |
| Vietnam | 4.84 |
| France | 4.62 |
| Country | % |
|---|---|
| UAE | 24.79 |
| Thailand | 19.97 |
| UK | 10.68 |
| Kazakhstan | 8.9 |
| Uzbekistan | 7.3 |
| Malaysia | 6.11 |
| Singapore | 5.81 |
| Vietnam | 4.84 |
| France | 4.62 |
Thailand leads policy volumes, followed by the UAE, Indonesia, and Vietnam. Thailand was the most visited country during the period, with 31.61 percent YoY growth in flight bookings, followed by the UAE with 31.42 percent, Malaysia with 12.43 percent, 11.53 percent by Uzbekistan, and 11.1 per cent by Kazakhstan.
“Thailand and the UAE benefit from visa-on-arrival, e-visa, or visa-free entry for Indian travellers, significantly lowering planning time and uncertainty. The convenience of short-haul travel, competitive flight fares due to high airline capacity and affordable local transport, food, and experiences make Thailand and the UAE repeat destinations,” stated the report.
In terms of visa bookings, Dubai topped the most visited list with 38.99 percent YoY growth, followed by Vietnam with 18.74 percent, Singapore with 17.29 percent, Indonesia with 12.37 percent, and Hong Kong with 12.61 percent.
“This ease is clearly reflected in visa booking growth as well. With flight times of 4-6 hours from major Indian metros, these destinations are ideal for long weekends and short vacations, first-time international travel, families and working professionals with limited leave,” the report stated.
The month of September 2025 saw the highest outflow with 41 percent citizens travelling abroad, whereas last October was the peak travel month in 2024 with 30.70 percent visiting foreign countries.
Top 5 merchant categories for card usage abroad
| Travel Itinerary | 2024 (%) | 2025 (%) |
|---|---|---|
| Shopping | 49.67 | 47.28 |
| Dining | 19.21 | 20.69 |
| Transport | 18.37 | 19.93 |
| Accommodation | 9.97 | 9.09 |
| Experiences | 2.78 | 3.01 |
The data further revealed a decline in travel expenses in 2025 as compared to 2024. For instance, shopping expenses saw a decline of 4.81 percent as compared to a year ago period. Similarly, dining expense dropped 7.15 percent, accommodation by 8.83 percent, while other experience expenses increased 7.64 percent.
The data noted that half of every rupee spent abroad goes to shopping, but its share is slowly dipping, as travellers allocate more spending to dining, local transport and experiences
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