Majority of Indian travellers delay buying travel insurance, Policybazaar data reveals, ET TravelWorld

A recent analysis by Policybazaar has shed light on the travel insurance habits of Indian tourists, revealing that a significant portion procrastinates on purchasing travel insurance until just days before their international trips. The data collected as of July 2023 highlights various trends in Indian travellers‘ insurance behaviour.

According to the findings, only 25 per cent of Indian travellers going abroad buy their travel insurance well in advance. At the same time, the majority prefer to purchase it within the last three days before their journey commences. This trend raises concerns as travellers often underestimate the importance of having comprehensive coverage in place from the outset.

While travel insurance is widely acknowledged for providing protection against baggage loss, flight cancellations, and medical emergencies, many travellers remain unaware of its lesser-known benefits. This lack of awareness may contribute to the procrastination in purchasing insurance.

One factor that potentially influences this behaviour is the frequent choice of Asian destinations by Indian travellers, where policy documents are not required until the day of the trip. This practice can lead to travellers overlooking the importance of securing insurance well in advance.

The data also highlights that, as of July 2023, over 38 per cent of Indians traveling abroad plan their trips for more than 15 days, with a preference for European countries. Additionally, 26 per cent plan shorter stays of 7 to 10 days.

The importance of an adequate sum insured while travelling abroad is not lost on the majority, with 7 out of 10 travellers opting for coverage exceeding 1 lakh dollars. However, the remaining 3 out of 10 choose the minimum coverage amount available.

Despite the challenges posed by the pandemic, the enthusiasm for international leisure travel has rebounded to pre-pandemic levels, with more than 97 per cent of Indian travellers exploring foreign destinations for leisure. In terms of Asian destinations, Thailand continues to be the most preferred choice for Indian tourists, as per the data. Notably, Vietnam and Indonesia have emerged as popular travel destinations post-pandemic.

In the post-pandemic era, statistics for Q1FY24 reveal that 50 per cent of Indian travellers visiting Asian countries belong to the age group of 18-35 years, while those in the age bracket of 36-50 years account for 24 per cent of travellers.

Policybazaar’s insights provide information on the travel insurance habits of Indian tourists, emphasising the importance of raising awareness about the benefits of purchasing travel insurance well in advance of international trips.