De-risking local travel

PERSONAL FINANCE: Insurance companies eye domestic travellers.

Risk-covers of the exotic kind will soon be a reality for the much-neglected traveller who moves within the borders of India. Tata-AIG, Bajaj Allianz and ICICI Lombard are to launch appropriate domestic travel insurance products.

These policies will cover not only the usual baggage loss, personal accident and loss of ticket, but also "compassionate visit for a colleague and spouse" if the policy holder is a corporate traveller and meets with an accident or falls sick. You could also opt for add-ons like trip cancellation, ticket loss or burglary at home while you are away.

The potential of this market is fairly significant, with 30 crore people travelling by train and 1.5 crore by air every year in the country. A large number of people fall sick or cancel their travel plans or find their baggage stolen and would do well to buy such policies.

New India Assurance Company has a policy "" Suhana Safar "" for domestic travel but it is not a round-trip cover. It operates from the place of departure and terminates on the scheduled date of return.

The new covers being launched would provide round-trip coverage, taking care of insurance needs from the time one starts the journey till you are back home.

The proposals "" Tata AIG's Domestic Travel Guard and Bajaj Allianz's Swadesh Yatra "" are awaiting approval of the Insurance Regulatory Authority of India (IRDA).

Tata AIG's domestic travel insurance premium would range from Rs 90 to Rs 200 depending on the add-ons opted for, while Bajaj Allianz's premium is expected to vary depending on the number of days from Rs 150 to Rs 2,500.