IRDAI has recently issued guidelines on Bharat Yatra Suraksha, the standard domestic travel insurance product, that will provide coverage for hospitalization expenses, death, permanent complete or partial disablement due to an accident, for travel through taxi, bus, train, ship, and airplane in India.
The base cover will provide coverage for hospitalization expenses ranging from Rs. 1 lakh to Rs. 10 lakh and an accidental death benefit ranging from Rs. 1 lakh to Rs. 1 crore. Optional covers include coverage for missed flight connections, loss of checked-in baggage, trip delays beyond three hours, and cancellations.
As the proposed product will be issued as per journey and trip, policyholders won’t be able to renew the policy, however, extension on payment of premium has been permitted. There will only be a single premium payment, which needs to be paid in advance.
While the standard travel policy is not mandatory, IRDAI has urged general and health insurers to offer this product from July 1, 2021.
In a recent circular, IRDAI said, “Though a number of travel insurance products are 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, to meet the most common requirements of a common passenger.”
There will be no co-payment under the standard domestic travel products, but insurers have been allowed to put deductibles.
Co-payment is a cost-sharing requirement where the policyholder will bear a certain percentage of the amount of the admissible claims, while deductibles are the amount that an insured must pay from their own pocket before the insurer pays for the policy coverage.
There shall be no restriction on minimum and maximum age in the policy. According to IRDAI, the product can be offered on an individual as well as a group basis, but when it comes to the family cover, the sum insured will apply to each family member separately.