Travel insurance takes off after pandemic

CHENNAI: What was once seen as optional is increasingly viewed as essential: uptake of overseas travel insurance among Indian outbound travellers has nearly doubled in six years, driven by rising medical costs abroad and heightened awareness of travel disruptions in the post-pandemic era.

According to Irdai’s annual report, 96.7 lakh lives were covered under 27.9 lakh overseas travel insurance policies during 2024–25. The gross premium income from the overseas travel insurance business for FY25 stood at Rs 1,267 crore.

This marks a substantial jump of 91% compared with 2018-19, when 50.5 lakh lives were covered through 25.8 lakh overseas travel insurance policies. Over the same six-year period, gross premium income from the overseas travel insurance business rose by 67.4%, from Rs 757 crore in FY19. The market share of private general insurers in overseas travel insurance gross premium also increased from 81% in FY19 to 84% in FY25.

Meet Kapadia, head of travel insurance at Policybazaar, said the growth reflects a clear shift in how Indians are planning international travel. “The pandemic may have been the trigger, but the sustained rise indicates that Indian travellers are now travelling with a sharper understanding of risk.

Medical treatment overseas can be five to eight times more expensive than in India, even for non-critical care. Beyond medical emergencies, recent flight disruptions have also made the financial impact of delays, missed connections and extended stays far more pronounced,” he added.

Dev Karvat, founder and CEO of Asego, a global assistance and travel insurance provider, said leisure travellers form the largest segment of international travellers seeking overseas medical insurance, while business travellers, students and long-term travellers, including professionals on overseas assignments, also opt for it. “Senior citizens are an increasingly important segment, with rising outbound travel among older Indians driving demand for specialised medical coverage and dependable emergency assistance,” he added.

The India Tourism Statistics report by the ministry of tourism shows that Indian outbound departures rose 14.7% from 2.7 crore in 2019 to just over 3 crore in 2024. Overseas travel insurance uptake has increased steadily despite not being universally mandatory, though it is required for certain destinations such as Schengen countries as part of visa norms.

Ravi Gosain, president of the Indian Association of Tour Operators, said the growth in overseas travel insurance reflects the strong revival of outbound travel from India.