The IRDAI has proposed a standard travel insurance policy with common coverage and policy wordings across the industry, in a move to increase penetration of the product.
“The standard product shall have the basic mandatory covers as specified in draft guidelines which shall be uniform across the market. The product may be both as an individual product and as a group product,” said the IRDAI’s draft guidelines issued on 28 December 2020.
The IRDAI is introducing a standard travel insurance product because the plans currently available have unique features and the insuring public may find it difficult to compare between them to choose an appropriate product.
The key features of the standardised policy are:
There shall be no restrictions on the age of entry. However, the proposer shall be of a minimum of age 18 years, as per the draft guidelines.
There are five variants under domestic travel:
Travel by any mode of public transport (within a city),
Travel by any mode of public transport (outside a city),
Air travel, and
Domestic tours involving road, water, train and air travel).
There are four variants under overseas travel:
Long-term trip (students),
Short-term trip (tours/leisure) (covers travel through road, water, train and air),
Multi-trip during the duration of a policy (business), and
Coverage only for travel (onward and return)
The name of the product shall be Standard Travel Insurance Policy, succeeded by the name of the insurance company.
The standard product shall also be offered on a family floater basis.
The premium under this product shall be on a pan-India basis and no geographic location/ zone-based pricing is allowed. And, pricing in respect of overseas travel insurance is permitted based on the country or region of travel and stay. (For example, Asia (except Japan & Korea), Europe, USA & Canada, Asia (Japan & Korea), other countries), as per the draft guidelines issued by the IRDAI.