Indians Are Buying Bigger Travel Insurance Covers Amid Rising Global Uncertainty

Earlier, many Indians would buy travel insurance at the last minute to meet visa requirements. But that is changing. It is now becoming an integral part of travel planning. Policy purchases have increased by 22 per cent compared to last year, according to data from Policybazaar. This reflects a growing concern about medical emergencies, flight disruptions and cancellations, and recent geopolitical uncertainty.

From Basic Cover To Comprehensive Protection

There is also a clear shift in the type of covers that policyholders are choosing. Earlier, more common were basic policies with coverage of around $10,000. Now, more travelers are opting for plans with higher coverage of $250,000 as the cost of overseas treatment and medical evacuation continues to rise.

Medical coverage remains the most important reason why travelers buy travel insurance, with 75 per cent of travelers opting for it. Also, trip cancellation cover has become more important than before because travelers often deal with changing travel plans, especially uncertainty in international routes, with nearly 50 per cent of travelers considering it. Also, evacuation cover has become important because regional conflicts and travel disruptions have increased to 40 per cent of travelers now considering it. A recent case in point is the US-Iran war that has caused a lot of tension in the Middle East.

Says Manas Kapoor, business head, travel insurance, Policybazaar.com, “Summer 2026 shows that Indian travellers are not pulling back due to geopolitical sensitivities; they’re simply travelling smarter. At the same time, travel behaviour is becoming more flexible with solo travel now making up over 76 per cent, reflecting a growing preference towards independent, flexible travel choices.”

From Basic Cover To Comprehensive Protection

Insurance companies are also seeing more demand for coverage against flight details, rerouting, and unexpected disruptions. In response, insurers are offering more flexible policy options that provide broader benefits for cancellations and interruptions.

Overall, there is a definite trend of travelers becoming more cautious about overseas travel. Since travel costs are high, people are paying more attention to what their insurance policy actually covers and not just buying the cheapest available plan. “This shows that travel insurance is no longer a compliance-led or formality purchase but a conscious decision driven by medical inflation, evacuation risks, and global unpredictability. Thus, 2026 is about travelling smarter, with a sharper focus on value, flexibility, and protection,” says Kapoor.