The new Schengen visa rules influencing Indian travel insurance preferences, ET TravelWorld

The allure of European destinations is undeniable and they have been among the most sought after destinations for Indian travellers. The travel experience is unmatched rich with culture, cuisines and exotic locations. Most European countries also have great infrastructure, which makes it comfortable to travel for elderly people as well as traveling with infants and children. Therefore, it is obvious that more and more Indians travel to Europe with every passing year.

Policybazaar’s data reveals that a whopping 82 per cent of Indian travellers are drawn to destinations like France, Switzerland, Italy, Germany, Netherlands, and Spain in the upcoming season.

However, a pain point when it comes to traveling to Europe has been the cumbersome process of applying and getting the visa. Unavailability of appointment dates, document requirements and long queues followed by a long waiting period to get the visa often leads to inconvenience, especially for frequent travellers. But now, this would be a thing of the past as travellers won’t have to apply for a visa every time they want to visit European countries, if they fall in the Schengen region.

New Schengen Visa Rules
As per the latest Schengen visa rules, termed as the “cascade” visa system for India, Indian travellers can now apply for long-term multiple-entry Schengen visas which would be valid for two years or five years. That means, one can go to any Schengen country during this period with the same visa.

To apply for a two-year visa, the basic condition is that during the past three years, the Indian passport-holder must have obtained and lawfully used two visas. If their passport has enough time before its expiration, they can also apply for a five-year visa.

Impact on the Indian Travel Insurance Sector
The travel insurance sector is expected to see new trends with the new visa rules. In fact, some new trends are already taking shape. As per the data, there has been already a three to four per cent increase in users booking long-term travel insurance policies exceeding 45 days in April 2024 as compared to March’24. This trend is expected to get further push with to the relaxed visa norms.

Moreover, Schengen countries have witnessed a 100 per cent rise in senior citizen travellers since FY23. Interestingly, the proportion of Indian travellers aged 31-45 visiting Schengen countries has also increased compared to last year. This shows an interesting shift in the demographics of the travelers.

Also, there has been a significant uptake in travellers declaring pre-existing diseases. After all, with people traveling for longer durations and multiple times to other countries would need better insurance protection if they already suffer from an ailment. This trend is a good sign as people are not only getting more aware of their insurance needs, they are also declaring pre-existing diseases while getting insurance to ensure proper coverage.

Data shows that this year saw a notable 15 per cent increase in travellers declaring pre-existing conditions like diabetes, hypertension, etc when travelling to Europe as compared to last year. Not just that, the travellers are also aware of how to select appropriate add-ons for their travel insurance and have shown remarkable interest in that aspect. The most sought-after add-ons include riders covering baggage or belongings loss, trip cancellation, adventure sports coverage, and pre-existing disease (PED) coverage.

There has also been a 40 per cent drop in users buying travel insurance in Euros. While this may have been partly due to the fact that embassies now accept coverage in dollars, this trend also reflects how consumer awareness and knowledge is growing in recent times.

The new Schengen visa rules are expected to remarkably simplify travel logistics. The longer-term visas offer greater flexibility to Indian travellers which will also initiate significant shifts within the travel insurance landscape. The insurance needs would evolve into travellers seeking more comprehensive coverage with longer durations. The insurance companies will need to catch up to these new requirements too to meet the evolving demands of today’s globetrotters.

The author is the Chief Business Officer – Health and Travel Insurance at Policybazaar.com.

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