To make domestic travel more financially secure, insurance regulator IRDAI has released guidelines on a standardised travel insurance product.
“There is a need to make every trip financially secure by providing suitable protection cover against unknown contingent events. Though, there are a number of travel insurance products available in India, each product is distinct and the insuring public may find it difficult to choose an appropriate product. Therefore, a standard travel product is designed with uniform features of coverage, so as to make available the most common requirements of a common passenger,” said the Insurance Regulatory and Development Authority of India (IRDAI) in a circular issued on Friday.
The standard travel cover will come with single premium payment option which will be collected in advance. There will be no restrictions on minimum and maximum age of entry.
However, the insured needs to be at least 18 years of age.
The standard product will cover medical expenses due to an accident where the sum assured will be in the range of Rs 1lakh to Rs 10 lakh. It will provide coverage against accidental death with sum assured ranging from Rs 1 lakh to Rs 1 crore, permanent total disability, permanent partial disability, repatriation of mortal remains, and automatic trip expansion.
Insurers can also offer optional benefits such as compassionate allowance, missed flight connection, loss of checked-in baggage, trip delay, carrier cancellation, trip cancellation and interruption. IRDAI has also said that the plans must necessarily be offered online through all insurers.
