There has been a rise in demand for travel policies in FY21-22 compared to the pre-Covid levels of FY19-20, mostly because of increased awareness and the lingering dread of another Covid-19 wave, a new report by Go Digit General Insurance has revealed.
The report was based on data across all travel insurance products between April 2019 and March 2022.
According to the report, the insurer sold 75 per cent of the total amount of travel plans it sold in FY21 in the first four months of 2022. This, the report added, highlighted the changed patterns in the first four months of the current year, and how more Indians were now purchasing essential travel insurance.
“Travel insurance was not available before due to Covid-19. But now, it is taken seriously, particularly among domestic travellers. An increasing number of Indians are purchasing travel insurance to guarantee that unanticipated glitches do not derail their plans. Over the last few years, the category has developed as well, with certain insurers now offering creative and need-based policies. Travel items are expected to become more dynamic in the next years, substantially expanding the market,” Vivek Chaturvedi, head of direct sales and chief marketing officer, Digit Insurance, said in a press release.
Demand for single-trip policies zoomed 215 per cent in FY21-22 over FY20-21, and the company sold nearly 11.7 lakh single-trip travel policies. Between January and April 2022, the biggest demand for travel insurance was seen in February. In all, Digit Travel sold over 12.8 lakh travel policies in FY21-22, a jump of over 100 per cent compared to FY19-20.
The report also mentioned of increased travel claims in the post-pandemic era. The company said it settled the highest number of travel claims in March, almost 120 higher than in January. Compared to FY20-21, FY21-22 saw more than three-and-a-half times more claims due to flight delays. Most policies were bought on the Mumbai-Delhi route, the report said. Men filed 66.5 per cent of the total claims between April 2019 and March 2022, the report added.
“Trip cancellation, as well as airline cancellations and delays, have traditionally been major causes for travel claims. Travel plans can be affected by a variety of factors, including severe weather, changes in travel plans, and airline on-time performance, among others,” Chaturvedi added.