Hyderabad:
In its new Standard Domestic Travel Insurance Policy, the insurance regulator IRDAI has allowed five plans which can be designed by the general and health insurers.
All general and health insurers will endeavour to offer this product from 1st July, onwards, said IRDAI on Wednesday.
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 IRDAI.
For domestic trip, a travel policy with less than or equal to seven days, can’t be cancelled once the Insured journey is commenced.
Cancellation of policy by insured is permitted only in case where the tenure of the policy is more than seven days for domestic trips..
There will be only single premium payment and it will be collected in advance.
The Standard product shall be launched without prior approval of the IRDAI and will have the basic mandatory covers as specified in the new guidelines which will be uniform across the market.
There will be no restrictions on minimum and maximum age of entry. However, the proposer has to be at minimum of age 18 years.
A Standard Domestic Travel Insurance Policy will have Room Rent, Boarding, Nursing Expenses all inclusive as provided by the Hospital / Nursing Home up to 2 per cent of the sum insured subject to maximum of Rs.10000/- per day, are allowed in the policy.
Intensive Care Unit (ICU) charges/ Intensive Cardiac Care Unit (ICCU) charges all inclusive as provided by the Hospital / Nursing Home up to 4 per cent of the sum insured subject to maximum of Rs.20,000/- per day, can availed by a customer.
Insurers are allowed to use the name of standard domestic product for the group policy by adding the word “group”.
However, the benefit structure of the standard policy remains the same except premium rate and specification of terms and conditions suitable to group policy.
Indian travel market is one of the biggest markets in the world. As per reports, around 36% of Indian households undertake trips for one purpose or other both within and outside the country. It is desired that all travels undertaken should be safe.
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.