Irdai issues guidelines for a standard domestic travel insurance product

Rollout on July 1, five plans on offer depending on mode of travel

The Insurance Regulatory and Development Authority of India (Irdai) has come out with guidelines for a standard domestic travel insurance product, to be known as “Bharat Yatra Suraksha”. General and health insurers have to offer this product July 1 onwards. 

There are five plans under the product and the coverage is both benefit and indemnity-based. 

“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”, the regulator said. 

The standard product will cover hospitalisation expenses due to an accident where the sum assured will be in the range of Rs 1-10 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. There are also some optional benefits that the insurers can offer. 

According to the guidelines, Plan A will cover travel by cab or bus for a distance of up to 100 km from place of origin, Plan B for travel by cab or bus for a distance of beyond 100 km from place of origin, Plan C for travel by train (only for reserved tickets), Plan D for air travel, and Plan E for trips involving travel through any one or multiple modes of common carrier such as Taxi Cab, Bus, Train, Ship or Air travel. 

The regulator has said, there shall be only a single premium payment and it shall be collected in advance. Also, the product may be offered on an Individual and Group basis. When offered as a family cover, the chosen sum insured shall apply to each family member separately.