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Now get adventure sports covered under overseas travel insurance policy

Overseas travel insurance offers cover from a number of contingencies, including repatriation or evacuation to India, coverage for hijack distress.

, ET Bureau|
May 16, 2018, 11.18 AM IST
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MUMBAI: The good run for general insurance industry continues with soaring business. Insurers like Prem Watsa-backed Digit have started covering adventure sports under the overseas travel insurance policy, which were a no-go area due to lack of adequate risk planning. Scuba diving and other adventure sports for overseas tourists are the latest growth areas.

“We understood that there is a real need to add adventure sports,” said Kamesh Goyal, chairman, Digit Insurance. “Medical costs arising out of injuries doing sports like bungee jumping, rides in amusement parks, scuba diving and para sailing are all covered under our overseas travel insurance plan.”

Unlike other insurers, Digit does not ask for bills and most covers are benefit covers. The company has settled 500 claims in a short time. Digit started designing products with Cleartrip. The travel insurance from Digit sends SMS about the delay in travel and pay for delay beyond 60-75 minutes. Also, baggage loss cover pays a fixed amount of Rs 20,000.

Most policies cover flight delay of six hours and beyond. “In the past four-five years, less than 0.1% flight was delayed beyond 5 hours. To claim loss of baggage, the customer needs to give the invoices of all items in the bag. The claim ratio is less than 1% under travel insurance,” said Jasleen Kohli, chief distribution officer, Digit.

Generally, overseas travel insurance covers risks like flight delay and cancellations, loss of baggage. It offers cover from a number of contingencies, including repatriation or evacuation to India, loss of travel document and coverage for hijack distress.

“The product evolves over a period of time. Earlier, the product covered medical expenses but gradually companies have started covering flight delay, loss of baggage and personal liability,” said Anurag Rustogi, HDFC Ergo. Of late, companies have started covering flight cancellation and alternate arrangements.

“Most companies are not covering adventure sports,” said Rustogi. “There will be niche group of customers who would be willing to buy. We do a focused group discussion and find out what to cover.” Travel insurance industry is a part of health insurance and data is aggregated with health insurance number, which is one-third of the market. The major coverage that gets utilised is medical expenses.

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