Insurance regulator, the Insurance Regulatory and Development Authority of India (Irdai), on Monday pitched standard guidelines for travel insurance with the objective of ensuring uniformity and definition about coverage, exclusions and terms of coverage for domestic as well as international travel. The new guidelines hope to make travel insurance popular with travellers.
The guidance will make available a standard travel insurance product with common coverage and policy wordings across the industry, Irdai said while issuing an exposure draft on “Guidelines on Standard Travel Insurance Policy.”
The exposure draft, on which the Irdai has solicited comments from the stakeholders by January 6, 2021, includes standard terms and conditions, customer information sheet and use and file format.
The draft spells out the coverage and exclusions under domestic and overseas travel insurance.
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, Irdai said.
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.