A significant percentage of Indian travellers heading abroad are opting for last-minute travel insurance purchases, with only 25% of them securing their coverage at least 30 days prior to their trip, according to a PolicyBazaar survey. This trend reflects a lack of awareness about the lesser-known benefits of early insurance acquisition and the unique dynamics of Indian travel preferences.
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Last-minute rush
Policybazaar's data indicates that the majority of Indian travellers going abroad choose to buy their travel insurance in the last three days of their departure. This tendency raises concerns about the potential risks and lack of coverage in the event of unexpected circumstances.
The data suggests that while many people understand the fundamental importance of travel insurance, they may not be fully aware of the broader benefits it offers beyond coverage for baggage loss, flight cancellations, and medical emergencies.
Asian travel dynamics
One key factor contributing to the last-minute purchase trend is that a significant portion of Indian travellers frequently visit Asian destinations. In most Asian countries, travellers are not required to present their policy copy until the day of the trip, leading to a relaxed approach to early insurance acquisition.
Changing travel patterns
As of July 2023, the study also reveals changes in Indian travel patterns, with over 38% of travellers planning trips for more than 15 days, primarily to European countries. Additionally, 26% of travellers are opting for shorter stays, ranging from 7-10 days.
Furthermore, a majority of travellers understand the importance of having an adequate sum insured while travelling abroad. Approximately seven out of 10 individuals choose coverage of over $100,000, providing them with comprehensive protection. However, the remaining percentage of travellers tends to select minimal coverage, which may not be sufficient to address unexpected expenses.
Post-pandemic travel boom
The data also highlights a significant resurgence in international travel. Currently, over 97% of Indian travellers are venturing outside the country for leisure, indicating that the trend of vacationing abroad has reached pre-pandemic levels.
Emerging Asian destinations
According to the findings, Thailand continues to be the most preferred Asian travel destination for Indian travellers. Notably, Vietnam and Indonesia are emerging as popular destinations, signifying evolving preferences and the impact of the post-pandemic travel landscape.
Age-specific travel trends
The age group of 18-35 years represents the highest share of Indian travellers heading to Asian countries — standing at 50%. Travellers aged 36-50 years constitute 24% of the total share, indicating distinct travel patterns among different age brackets.
In light of these findings, Manas Kapoor, Business Head of Travel Insurance at Policybazaar.com, emphasised the importance of early travel insurance buying.
He stated, "The data shows that a relatively small percentage of Indians travelling abroad purchase travel insurance well in advance of their trips. This means that a significant portion of Indian travellers are buying insurance closer to their departure dates or possibly on their way to the airport. This could be because of various reasons, for instance, not all travellers are aware of the benefits of travel insurance or may not fully understand the coverage it provides. Lack of awareness can lead to a delay in purchasing insurance."
"Purchasing travel insurance well in advance can offer certain advantages, such as coverage for trip cancellations due to unforeseen events, including illness or family emergencies. Additionally, purchasing insurance early may provide peace of mind and protection against unexpected situations that could arise before the trip," he added.
As international travel continues to rebound, raising awareness about the importance of early travel insurance purchase and its benefits becomes crucial for the Indian traveller community.
