NEW DELHI: After standardising life insurance policy, health and personal accident cover, the Insurance Regulatory Development Authority of India (IRDAI) has now come out with draft guidelines on standard travel insurance policy. According to the proposal, there will be uniform features and clauses and all insurers will have to offer this product from April this year.
However, the companies will have the freedom to determine the premiums with add on features. There are two sets of standardising: one, for the overseas travellers and the other for domestic travellers. The overseas travel policy will mandatorily cover hospitalisation expenses up to $1 lakh or equivalent currency and hospital cash, among others. It will also pay for the treatment of life-threatening conditions arising due to pre-existing diseases up to $10,000, accidental death, permanent total and partial disabilities.
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, according to the proposed guidelines. There are also optional benefits including flight delay beyond three hours (up to $500), loss of baggage (up to $500) and personal liability (up to $50,000).
Trip cancellation due to a pandemic or natural calamities (up to $10,000). Also, the pricing of overseas travel insurance will be based on the country or region of travel and stay. There shall be no restrictions on the age of entry and any travel which is for the purpose of obtaining medical treatment will not be covered under the policy, according to the draft guidelines issued by the insurance regulator.
On the other hand, the domestic travel policies will cover accidental hospitalisation expenses up to Rs 2 lakh. Accidental death, permanent total and partial disability risks will get fixed benefit covers of Rs 10 lakh, Rs 10 lakh and Rs 5 lakh, respectively, per person. This policy cover will come with room rent sub-limits up to two per cent of the sum insured and a maximum of Rs 5,000 per day.
Intensive Care Unit (ICU) charges will be capped at five per cent of the sum insured or maximum Rs 10,000 per day, as specified in the policy schedule. Under the optional covers for domestic travels are cover of hospital cash (Rs 1,000 per day), missed flight or train (up to Rs 10,000) and loss of checked-in baggage (for air travel, flat Rs 10,000). Trip cancellation due to pandemics and natural calamities will be covered up to Rs 1 lakh. The products may be both as an individual product and as a group product.Irdai has solicited comments on the exposure draft from stakeholders by January 6.