Passengers aboard Air India Flight AI2379 from Phuket, Thailand, to New Delhi on August 4, 2026, had a terrifying experience when the aircraft reportedly plunged 300 feet while cruising at 30,000 feet, leaving several people injured.
While compensation for injuries sustained during a flight may be available through the airline's insurance arrangements, the incident also highlights the importance of having personal travel insurance. From emergency medical treatment and hospitalisation to unexpected disruptions, a travel insurance policy can provide a crucial financial safety net when a journey takes an unforeseen turn.
Yet, despite the risks involved in travelling, insurance remains an afterthought for many Indians. Whether travelling within the country or overseas, passengers often overlook a relatively inexpensive safeguard that could protect them from substantial financial losses.
Travel insurance covers much more than medical emergencies. Depending on the policy, it can provide protection against flight cancellations, prolonged delays, lost baggage, stolen passports and other unexpected expenses.
However, there is a major difference between overseas travel insurance and domestic travel insurance. Overseas travel claims need to be serviced by international service providers while claims in domestic travel policies are settled by policy issuing companies.
Beyond Borders, Covering Risks
Several countries require travel insurance for obtaining a visa. Schengen Visa which
enables travel to 29 European countries strictly requires a minimum medical coverage
of €30,000 (about Rs 33.5 lakh). Several other countries like United Arab
Emirates, Saudi Arabia, Turkey and Cuba also mandate travel insurance.
Whether travel insurance is mandatory or not it is advisable to obtain it before
embarking on a foreign trip. Healthcare in destinations like the US, UK, or Europe is
highly expensive. An unexpected illness, accident, or emergency hospitalization can
cost thousands of dollars. A travel policy ensures that cashless hospitalization or
medical evacuation is taken care of.
Overseas travel insurance coverage starts when you depart from your home country or
on the specific start date mentioned in the policy and ends when you return to your
home country or when the policy duration expires.
The total premium collected from the overseas travel insurance business in India stood
at Rs 1,267 crore for the financial year 2024–25, according to the annual report of the
Insurance Regulatory and Development Authority of India (IRDAI). Number of policies
were 27.9 lakh covering 96.7 lakh travelers.
The 45-Paise Safety Net
Domestic travel insurance is not popular in India. The figures speak for it. Compared to
Rs.1,267 crores premium for overseas travel, premium for domestic travel insurance
was Rs.106 crores in FY 2024-25.
The number of people covered is significantly high because of the insurance cover for
train travel. As many as 53.43 crore passengers opted for and were covered by the IRCTC optional travel insurance policy during FY 2024-25. The premium for a train journey is Rs.0.45
(45 paise). The coverage is that one get Rs 10 lakh in case of death or permanent total disability and upto Rs 7.5 lakh for permanent partial disability and Rs 2 lakh for hospitalisation expenses for injuries. And all this coverage comes for just 45 paise.
And three insurance companies handle the IRCTC insurance scheme; namely Liberty General
Insurance and two Chennai-based companies – Royal Sundaram General Insurance
and United India Insurance.
Number of passengers traveling by domestic flights who take travel insurance is
comparatively less. So is the case with bus journeys. This may be because of low
awareness or the usual sentiment “I don’t need insurance”. The fact is that everybody
needs insurance.
One Policy, Miles of Protection
One question normally asked is whether domestic and overseas travel can be covered
in a single policy? The answer is YES. If a journey involves domestic and overseas
travel in one trip, the overseas travel insurance policy takes care of it. For frequent
travelers, there are annual multi-trip travel insurance plans. Many insurance providers
offer 12-month multi trip policies that cover both domestic and overseas journeys.
Several credit and debit cards in India offer built-in complimentary travel insurance.
There may be conditions like using the card for booking the ticket or informing the card
issuing bank before undertaking the journey.
General insurance penetration in India is at 1% of Gross Domestic Product (GDP)
compared to the global average of 4%. This indicates a lack of awareness be it for travel
insurance or health insurance or other lines of business-like home, motor etc.
This needs to be addressed by insurance companies as well as the IRDAI.
The General Insurance Council, which represents all general insurance and reinsurance companies in India, recently launched an awareness and education campaign with the tag line “Accha Kiya, Insurance Liya.”
This is a good beginning, but the campaign needs to be sustained. Greater awareness must also translate into a simple habit: making insurance an integral part of travel planning. So, the next time you plan a journey, think of insurance as well.
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