India's offbeat travel insurance rises 45%, Seychelles up 115%, Vietnam 50%

Travel insurance for offbeat destinations jumped 45% in 2-3 years, with Seychelles leading at 115% growth and Vietnam rising 50%, said Policybazaar

Travel insurance purchases for offbeat destinations such as Seychelles, Vietnam, Sri Lanka and Fiji have grown by nearly 45 per cent in the last two to three years, according to data from insurance broker Policybazaar.

 

While these still account for only around 11 per cent of the insurance volumes of mainstream destinations such as the United States, United Kingdom, Europe, Dubai, Singapore and Thailand, the pace of growth suggests a rapid shift in preferences among Indian travellers.

 

Seychelles and Vietnam lead the surge

 

Seychelles recorded the sharpest rise with a 115 per cent increase in travel insurance purchases in 2025 compared with 2024. Vietnam followed with about 50 per cent growth, supported by affordable travel options, easier visa processes and diverse cultural attractions.

 

Other destinations such as the Philippines, Sri Lanka, Kenya and Fiji are also witnessing growth, particularly among travellers seeking eco-tourism and adventure-led experiences.

 

Young professionals dominate

 

Travellers aged between 25 and 35 accounted for 44 per cent of policies bought for offbeat destinations, making them the largest segment. Buyers overall ranged from 23 to 60 years.

 

“Indian travellers no longer want cookie-cutter itineraries. They are seeking offbeat destinations and experiences that are adventurous, spontaneous, and sometimes unpredictable – yet they are being smart about it by opting for higher insurance coverage and relevant add-ons,” said Meet Kapadia, head of travel insurance at Policybazaar.

 

Shorter trips, higher cover

 

Trips to offbeat locations average 18 days compared with 51 days for mainstream destinations, suggesting these are taken more as exploratory holidays than extended stays.

 

Travellers are also opting for higher insurance covers, with most policies carrying medical protection of more than $100,000. Adventure sports add-ons are increasingly popular, particularly for diving, trekking and safaris.

 

According to Policybazaar, many of these policies are purchased close to departure, as several offbeat destinations are visa-free and do not require upfront proof of insurance.

 

Risks and claims

 

Travel to remote destinations often comes with unique risks, including limited healthcare facilities and longer evacuation times. The most common claims include:

 

< Medical emergencies such as diving accidents or altitude sickness

< Trip disruptions from flight delays or cancellations

< Baggage issues on multi-hop journeys

 

Seasonal demand and future outlook

 

The peak season for offbeat travel remains October to March, coinciding with festive breaks and favourable weather conditions.

 

Policybazaar noted that post-pandemic demand for insurance on such routes has grown by more than 50 per cent, reflecting a preference for less crowded and “hidden gem” destinations.

 

Japan, meanwhile, is projected to see the strongest growth in the next one to two years, with its mix of culture, safety and accessibility expected to push it from an offbeat choice into the mainstream.