Overseas Travel Insurance Rebounds: 96.73 Lakh Lives Covered In 2024-25

The Insurance Regulatory and Development Authority of India’s (Irdai) annual report for 2024–25 points to a sharp rebound in overseas travel insurance, mirroring the strong revival in outbound travel. During the year, insurers provided overseas travel cover to about 96.73 lakh individuals through nearly 27.97 lakh policies.

This represents a substantial volume of international travel activity, with gross premiums for the sector reaching Rs 1,266.98 crore, up from Rs 1,099.04 crore in the previous year. The incurred claim ratio for overseas travel insurance also saw an increase, rising to 49.45 per cent from 42.16 per cent in 2023-24.

Claims Rise, Awareness Rises Faster

The increase in the outbound travel insurance adoption from the Indian policyholder reflects how Indian travelers think about their financial protection while travelling overseas.  They see an insurance policy as cover against possibly high and unpredictable expenses such as overseas trip disruptions, urgent medical treatment, or the need for any emergency assistance.

“The Indian traveler increasingly recognizes that even a very short-term overseas travel experience poses a significant financial risk due to the enormous costs of health care and emergency services in many foreign countries. Considering the current interest in outbound travel along with a greater understanding of the importance of being properly insured while traveling abroad, it is becoming a regular occurrence for travelers to incorporate travel insurance into their plans for a safe and responsible trip,” says Sarita Joshi, head of health and life insurance, Probus.

Pandemic Changed How Indians Travel

This change in mindset was clearly triggered post the pandemic, when people realized the importance of coverage abroad while travelling. Many were stuck and couldn't travel back home; many had to seek treatment abroad—all of this led to a change in the mindset of travelers. It's important to note that a large percentage of this growth has been a result of cautious and meticulous travel planning of first-time international travelers. This base is more aware of the risk that comes with travelling and how they can mitigate it with insurance.

“This shift also reflects a growing digital literacy among travelers: many now research policies online, compare plans, and buy coverage well in advance for protection and peace of mind, and not just for visa purposes. Policybazaar data shows that travellers also actively consider trip cancellations, lost baggage, and emergency assistance as integral to their experience and seek these features while looking for a plan to buy,” says Meet Kapadia, head of travel insurance, Policybazaar.