New guidelines issued by IRDAI for standard travel insurance

Posted on: Jul 6, 2023 | | Written by:

New guidelines issued by IRDAI for standard travel insurance

Published on July 06, 2023. EST READ TIME: 3 minutes

New standard travel insurance guidelines by IRDAI

The number of people opting for domestic travel is substantially low. However, the risks that are associated with travelling, remain the same even for domestic travel. In a bid to promote safer travel, the IRDAI has come up with guidelines for standard travel insurance.

New standard travel insurance norms by IRDAI

On the 5th of May 2021, the Insurance Regulatory and Development Authority of India or IRDAI guidelines for standard travel insurance product was issued. According to the guidelines, a travel insurance product with five variants will be on offer, and the basic mandatory cover will be common across the insurance industry.

The guidelines outlined that the policy will be a single premium policy and the premium must be collected in advance. Though there are no restrictions on the entry or maximum age of the applicant, they must be above 18 years of age.

A result of the guidelines was the Bharat Yatra Suraksha Policy. The primary motive of the policy was to provide safe travel within the country, without travelers having to worry about the financial consequences of something going wrong.

Standard travel insurance types

According to the IRDAI guidelines for standard travel insurance, the policy will be available in 5 different types. Here are the different types of the standard travel insurance policy.

1. Plan A

This plan is ideal for people who travel either by taxi, cab, or bus. The limit on distance is set at 100 kilometres from the source and it covers a single journey from the origin to the destination and the plan is valid for the duration of the journey.

2. Plan B

Plan B is ideal for people who travel by taxi, cab, or bus and the travel distance is more than 100 kilometres from the origin. Like Plan A, it is valid for a single journey from the origin to the destination and the tenure of the policy is the duration of the journey.

3. Plan C

The third proposed plan is for people who like to travel via train. However, the plan is only valid for tickets that have been booked in advance or reserved. Though the plan is valid for a single journey from the origin to the destination, there is no upper limit on the distance. Like the previous policies, tenure is the duration of the journey.

4. Plan D

Plan D is ideal for people who travel by flight. The plan is valid for a single journey from the source to the destination and does not have any sort of limit on the distance travelled. And the tenure of the policy is the duration of the journey.

5. Plan E

Plan E is for collective domestic travel. Irrespective of your mode of travel, taxi, train, bus, flight or ship, the plan will offer you coverage. There aren’t any restrictions on the distance that you travel. And it is valid from the source to the destination and back to the source. The tenure of the policy is up to a maximum of 30 days.

Salient features of standard travel insurance

If you want to opt for an individual travel insurance policy, the following are some of the standard features that you can expect.

1. The plans do not have any sort of waiting period on them. The coverage of all the policies starts the moment you begin your journey.

2. The above five plans do not have a lot of restrictions when it comes to age limits. The only caveat is that a policy buyer must be above 18 years of age.

3. The IRDAI has mandated that these policies be sold online. Insurance providers can sell the plans offline as well. However, the online mode will make it easier for people to purchase the policy with minimal interaction with any advisors or customer service agents.

4. For the plans to be active, you must pay the premiums upfront.

Coverage of standard travel insurance

Should you decide to proceed with a standard travel insurance policy, you will get access to the following coverages.

1. In the unfortunate event of the death of a policyholder, the insurance provider will compensate within the range of Rs. 1 lakh to Rs. 1 crore, depending on the coverage that the insured has opted for.

2. The policy will cover expenses related to Sending home of mortal remains of the insured, apart from Plan A. The coverage ranges between Rs. 20,000 and Rs. 1,00,000.

3. If the insured meets with an accident resulting in permanent total disability, the policy will offer compensation for the same.

4. If the insured meets with an accident and it results in hospitalisation, the policy will cover such expenses. To avail of the compensation, the insured will need to pay a deductible of Rs. 500.

Exclusions of standard travel insurance

The following are the exclusions of the policy.

1. Insured will not receive any compensation if they are hospitalised due to pre-existing conditions or injury or illness.

2. Any injuries due to suicide or self-inflicted injuries are not covered.

3. The plan will not cover any hospitalisation or death if the insured meets with an accident while riding or driving a vehicle.

Conclusion

Though a lot of Indians opt for international travel insurance, not many opt for domestic travel insurance. In a bid to cover the perils of travel for domestic travel and receive compensation for financial losses, the IRDAI has come up with new regulations. The above policies are available for domestic travelers of different types.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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