The Paris attacks, the earthquake in Nepal, and the Ebola epidemic in 2015 are some of the incidents that have driven the travel insurance sales in the past year. Industry estimates reveal that sales are likely to have doubled from ₹ 110 crores in the previous year, to over ₹ 220 crores in 2015.
According to travel companies, while most travelers purchase general travel insurance, only few opt for insurance against ‘global calamities’. General travel insurance covers essentials such as loss or delay of baggage, medical evacuation, and medical expenses.
Experts say that around 60% of travel insurance policies provide cover for terrorism, although the schemes offered may differ. Mr. Sanjay Datta, Chief - Underwriting and Claims at ICICI Lombard, said that financial losses incurred during natural disasters is covered by nearly all travel insurance policies. He added that it is advisable to avoid travelling to places that are under threat or risk.
Despite the 100% increase in travel insurance sales in 2015, industry sources opine that the penetration of travel insurance in India is still very low. The Indian travel insurance market has been estimated at ₹ 240 crores. The growing online sale of insurance policies contributed to policies worth ₹ 40 crores.