Irdai Proposes Standard Norms For Travel Insurance

2020-12-29 08:22:54

Irdai Recommends Standard Rules For Travel Insurance

The new guidelines aim to make the product popular among travellers.

Insurance regulator, the Insurance Regulatory and Development Authority of India (Irdai), on Monday pitched standard guidelines for travel insurance with the objective of ensuring uniformity and definition about coverage, exclusions and terms of coverage for domestic as well as international travel. The new guidelines hope to make travel insurance popular with travellers.

The guidance will make available a standard travel insurance product with common coverage and policy wordings across the industry, Irdai said while issuing an exposure draft on “Guidelines on Standard Travel Insurance Policy.”

The exposure draft, on which the Irdai has solicited comments from the stakeholders by January 6, 2021, includes standard terms and conditions, customer information sheet and use and file format.

The draft spells out the coverage and exclusions under domestic and overseas travel insurance.

The insurance company will pay as compensation to the legal heirs/nominee the amount stated as sum insured if the insured suffers accidental bodily injury while overseas and this is the sole and direct cause of his death within the period of 365 days, Irdai said.

In the event of accidental death of a minor below 18 years of age, the maximum liability of the insurer would be limited to 50 per cent of the sum insured.


In case of domestic travel insurance, if the common carrier in which the insured person is travelling meets with an accident resulting in death of insured person within 365 days from the date of the accident, then the insurer will pay as compensation the amount stated as sum insured.

The travel insurance policy will also cover events like missed flight, loss of checked-in baggage, trip delay, loss of passport and repatriation of remains.

Any travel which is for the purpose of obtaining medical treatment will not be covered under the policy, according to Irda.

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