World Tourism Day: Health Emergencies, Flight Delays Drive Most Travel Insurance Claims In India

The pandemic years may be behind us, but unpredictability still remains a central issue when it comes to international travel. A fresh set of numbers released by TATA AIG General Insurance on the occasion of World Tourism Day shows that health-related risks and operational disruptions are shaping how Indians approach their journeys.

The insurer’s claims analysis data shows that medical emergencies, both outpatient and inpatient, made up 55 per cent of travel insurance claims between April 2024 and August 2025.

Other than medical issues, baggage and flight delays together accounted for 23 per cent of claims showing how logistical breakdowns are also a routine stress point for travellers.

The data highlights that while falling sick abroad is still the most common reason for turning to insurance, trip interruptions due to operational delays are also claimed for. With airports struggling to keep up with rising demand and airlines grappling with weather-related disruptions, many travellers are now seeing insurance less as an optional add-on and more as a buffer against such unpredictable hassles.

Who Is Buying, Where They Are Going

The data also gives insights on how Indians are using travel insurance today:

Almost 99 per cent of policies sold were for international trips, leaving domestic travel largely uninsured. The US, the UK, the UAE, Thailand, Singapore and Germany emerged as the most insured destinations.

The demographic breakdown of data notes that the younger workforce (26-45 age group) is currently driving the travel insurance demand, accounting for the majority of purchases. This includes leisure, business and student travel.

April to June were the peak period for travel policy purchases, coinciding with school holidays and summer breaks, when outbound travel tends to spike.

Domestic Gap In Coverage

The figures underline a striking gap: just 1 per cent of policies were bought for domestic journeys. That leaves most Indians exposed to risks closer to home, despite domestic air travel also being prone to delays, cancellations, baggage loss and even medical issues linked to adventure sports or unexpected emergencies.

While international travellers have embraced insurance as a near-essential, domestic travellers still tend to overlook it, assuming that short distances or familiar territory reduce risk. The claims data, however, suggests that the uncertainties of modern travel do not stop at borders.

A Snapshot Of Changing Travel Realities

The broader takeaway is clear: travel may be more accessible than ever, but it is also more fragile. Medical concerns abroad continue to be the biggest financial risk, but operational disruptions are fast catching up.

As international trips remain the default driver of insurance purchases, the challenge ahead may lie in building awareness of domestic coverage, a step that could shield travellers from the rising unpredictability of even local journeys.