IRDAI proposes standard guidelines for travel insurance

With a view to ensuring uniformity and certainty about coverage, exclusions and terms of coverage for domestic as well as international travel, the Insurance Regulatory and Development Authority (IRDAI) has proposed standard guidelines for travel insurance. The guidelines will make available a standard travel insurance product with common coverage and policy wordings across the industry. The exposure draft, on which the IRDAI has invited comments from the stakeholders by January 6, 2021, includes standard terms and conditions, customer information sheet and use and file format. The draft details out the coverage and exclusions under domestic and overseas travel insurance.

It said 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. 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 traveling meets with an accident resulting in death of insured person within 365 days from the date of the accident, then the company will pay as compensation the amount stated as sum insured. The travel insurance policy also covers events like missed flight, loss of checked-in baggage, trip delay, loss of passport and repatriation of mortal remains. Any travel which is for the purpose of obtaining medical treatment will not be covered under the policy.