Travel insurance cover can't be default option: Regulator

New Delhi: The insurance regulator has directed all insurers to ensure that travel insurance coverage does not come as a default option when buying tickets on any ticket-booking portal.

The Insurance Regulatory and Development Authority of India (Irdai) also banned selling travel insurance cover to tickets bought 90 days in advance for domestic travel. The move aims at checking mis-selling of travel insurance through online ticket booking portals and apps.

Insurers welcomed the move, saying it will benefit both the insured and the insurers. 'Though domestic travel insurance remains a small portion of the business, the new norms announced by the Irdai will benefit both the insured and the insurers,' Gurdeep Singh Batra, head, retail underwriting, Bajaj Allianz General Insurance said.

'Providing those booking tickets the confirmation option of whether they want the cover or not is a welcome step,' he added. As per the Irdai circular issued last week, Irdai said, 'Insurers shall ensure that any portal or app providing the travel insurance coverage shall not pre-select the option of buying the travel cover as a default option.'

The circular also said, 'Premium shall not be received more than 90 days in advance to the date of commencement of the risk covered in case of domestic travel or along with the ticket while purchasing the travel tickets, whichever is earlier.' The norms are not applicable to international bookings, said Batra.

Source: Deccan Chronicle