IRDAI issues guidelines for insurers on standard travel insurance policy

Hyderabad: Insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI), on Wednesday issued guidelines for insurers to launch a standard domestic travel insurance product — Bharat Yatra Suraksha — from July 1, 2021, onwards.

Insurers have been allowed to determine the premium, which will be one-time payment made by policyholders before the commencement of travel. Insurance companies will be allowed to launch five variants under this product, which can be offered on an individual as well as group basis. When offered as a family cover, the chosen sum insured will apply to each family member separately, the guidelines stated.

There is no co-payment or initial waiting period under this policy, which will have a base cover as well as optional cover. The base cover will include hospitalisation expenses due to accident (for sum insured in the range of Rs 1-10 lakh), death due to accident (for sum insured in the Rs 1 lakh to Rs 1 crore sum assured), permanent total disability, permanent partial disability and repatriation of mortal remains, among others.

The optional cover will include missed flight connections, loss of checked-in baggage and trip delays beyond three hours, among others. The policy will not cover any claim for death or disablement, hospitalisation of the insured person directly or indirectly due to war, acts of foreign enemies or revolutions, among others.

It also won’t cover any claim for death, disablement or hospitalisation in case of suicide or while engaging in aviation or ballooning, other than as a passenger in any scheduled airlines in the world. The policy will also exclude claims arising from loss directly or indirectly caused by radiation or contamination by radioactivity from any nuclear fuel or nuclear waste.

The insurance company will have to settle or reject a claim within 30 days from the date of receiving the last necessary document. In case of delays in the payment of a claim, the company will be liable to pay interest to the policyholder from the date of receipt of last necessary document to the date of payment of claim at a rate of 2% above the bank rate.