The Buyt Desk
The general and health insurance companies have to be ready with a standardised travel insurance policy very soon. This travel policy will have uniform features and rules across the companies. After mandating standardised life and health policy, the Insurance Regulatory Development Authority of India (IRDAI) has issued a draft on ‘Guidelines on Standard Travel Insurance Policy’. As per the proposal, the insurance companies have to formulate uniform domestic and international travel insurance policies. The IRDAI wants this to be introduced to consumers from 1st April 2021.
Uniformity in Name
There is a common prefix in the standardised life and health plan so that buyers know what they are buying. The standard term life cover plans start with the prefix Saral Jeevan Bima followed by the company’s name offering the plan. The standard health plans have Aarggya Sanjeevani at the beginning of the policy name. Similarly, the uniform travel insurance plan will be called Standard Travel Insurance Policy, followed by the insurer’s name. Just not the name and features of this policy would be easy to understand, but the policy wording needs to be simple too.
Domestic Travel Policy
The insurance companies will offer standard travel insurance plan on individual, floater and group policies. They will be made in a manner that it would cover trip cancellation due to a pandemic or natural calamities. The domestic travel policy will only cover the travel and not the stay. The policy’s features and clauses will be standardised, but the insurers will determine premiums. The premium may vary from company to company as per the product structure. However, the consumer will have the option to choose the one which suits their pocket the best.
International travel policy
The international travel insurance cover will be offered depending upon the length of the stay. Specific plans for long stays and a short vacation will be covered. There would be a 6-36 month tenure, for longer stay targeted at students. But even a short leisure trip of up to 180 days will be covered under a uniform plan. There will be an annual policy for business travellers. Even plans covering just the journey and not the stay will be standardised as well. The standardised international travel policy will include hospital expensed, and the pre-existing condition will be included as well. They will cover baggage loss, delay in the flight, missed flight, loss of passport and cancellation due to pandemic or any other natural calamity. The premium will vary from one company to another depending upon the add ons and the destination.
IRDAI is hoping that standardised travel policy will encourage people to buy simpler plans in India.
