Overseas Travel Surges, But Travel Protection Still A Low Priority For Indians

Over the last few years, there has been a noticeable increase in the number of Indian tourists travelling abroad, propelled by increasing disposable incomes, better air travel connectivity, and rising wanderlust. However, while the number of Indians travelling abroad is now higher than ever, travel protection, which is a very important aspect of travelling, is still widely neglected.

According to industry estimates, almost 82 per cent of Indians travelling abroad do not opt for travel insurance or any form of travel protection solutions. In mature global markets though, the adoption rate for travel insurance and assistance services typically range from 85-90 per cent, as opposed to an 18 per cent adoption rate among Indian travellers.

According to experts, this contrast isn’t necessarily because of travellers’ resistance to purchasing travel insurance. Instead, the main catalyst is limited awareness, which leads to low prioritisation of travel insurance during the planning stage. Most travellers focus on flights, accommodation, and itineraries while planning their trips, leaving travel protection as an afterthought.

Says Dev Karvat, founder & CEO, Asego, a travel insurance company: “When things go wrong during overseas travel, the impact is often both financially and logistically overwhelming. Medical emergencies, for instance, can result in unexpected financial hardship, particularly when visiting countries where healthcare costs are exponentially greater. Any number of emergencies, such as lost luggage, delayed flights, cancelled trips, natural disasters etc. can disrupt travel and cause unforeseen expenditures. In reality, travellers often recognise the importance of travel insurance only when faced with such trying situations abroad.”

Yet, a significant majority of Indian travellers continue to travel without adequate protection. 

Adds Karvat:  “This view is supported by a combination of broader industry data on outbound travel volumes and insurance penetration in India, along with Asego’s deep analytics and servicing insights,” he adds.

These findings are further contextualised when benchmarked against more developed travel markets, where travel insurance is a standard part of international travel planning. Such analysis offers a directional view of how frequently Indian outbound travellers are choosing travel protection when compared to global standards.

As overseas travel continues to grow among Indian travellers, industry pioneers believe that there is an opportunity to raise awareness about the importance of choosing travel protection as a standard part of responsible trip planning. Easier access to global assistance and travel insurance services, along with greater understanding of potential travel risks, could work wonders in closing the current protection gap.

“There has been an increasing demand for solutions that look beyond traditional travel insurance coverage and meet the changing needs of today's travellers. Emergency travel insurance and global assistance for Indian travellers provides financial protection and quick access to assistance when the unexpected happens abroad. With global mobility becoming more prevalent, adding travel risk protection to travel planning may become just as essential as booking flights and accommodation,” says Karvat.