News: Indians are going places
(DNA 16/05/2006) Mumbai - The economic buoyancy on the ground seems to be fuelling a rush in the air, with an increasing number of people flying out of the country every year.
Improvements in air connectivity, falling prices, vigorous marketing of packages by operators and the easy availability of cheap funds are all coalescing to create a boom of sorts.
Only, even as 6.5 million trips go out of the country every year, almost 5 million are uninsured. This, at a time when a basic cover is well within the reach of most travellers.
When Kamesh Kaisare decided to visit his brother’s family in the US, for example, he got a one-month policy cover for himself, his wife and six-year-old son — for just Rs 2,592.
And what all did it assure him of — $2,500 in case of accidental death and disability, $100 for delay in delivery and $250 for loss of checked baggage, $500 as cash advance, $250 for loss of passport, $5,000 towards medical expenses, $1,000 as personal accidental liability and $10,000 for personal liability.
The policy also assured them $500 in case the trip was cancelled and $200 if it was curtailed, besides a daily hospitalisation allowance of $25 per day to a maximum of $300 and $20 per 12 hours to a maximum of $120 for trip delay.
What’s more, it also offered a burglary cover of Rs 1 lakh for their home in India during their absence. “It also offered $250 for a golfer’s hole-in-one bash,” said Kamesh.
“It’s always that feeling that misfortune will strike my neighbour, not me,” quips Sudhir Menon, head, travel insurance and worksite management, ICICI Lombard General Insurance. Barely two out of 10 Indians travelling abroad bother to take a travel insurance cover, he points out.
“Also, 60-65% of the trips are to neighbouring and South East Asian countries, and the proximity perhaps lends them a feeling that there is no need to buy insurance,” says Menon, pointing out that hospitalisation costs in Hong Kong or Singapore, can also be very expensive.
The overseas travel insurance market is growing at 30% a year and is likely to touch Rs 260 crore by the fiscal-end, compared with the overseas travel industry growth of 18% a year. Menon feels the industry’s full potential is over Rs 600 crore.
The insurance providers are aggressively target segments where there is a niche or potential. ICICI Lombard, for example, has the Bronze Plan aimed at those travelling to neighbouring countries, and a salt-and-pepper plan that covers elders up to 85 years of age, among a host of individual and family plans.
It is also focuses on the student segment, where there is a “genuine need,” says Menon. Bajaj Allianz has also introduced products for travellers to Asian countries even as it reaches out aggressively students and senior citizens.
“The Asian travel segment has been a late introduction, but the other segments we’ve had for a long time. The most important development, though, has been our tie-up with service providers abroad to ensure hassle-free and cashless services through a toll-free number,” said Kamesh Goyal, CEO, Bajaj Allianz General Insurance Co Ltd.
But, there is still a lack of awareness, says Menon, pointing out how many students still prefer to buy a cover after arriving in the US or the UK, even though it works out cheaper from here.
“Also, the cover should ideally apply right from the time you leave home to the time you are back home,” he avers, adding, ICICI Lombard’s home-to-home insurance product went live earlier this month. “And we also cover conditions like pregnancy or mental disorder, which would normally be in the list of exclusions there.”
Improvements in air connectivity, falling prices, vigorous marketing of packages by operators and the easy availability of cheap funds are all coalescing to create a boom of sorts.
Only, even as 6.5 million trips go out of the country every year, almost 5 million are uninsured. This, at a time when a basic cover is well within the reach of most travellers.
When Kamesh Kaisare decided to visit his brother’s family in the US, for example, he got a one-month policy cover for himself, his wife and six-year-old son — for just Rs 2,592.
And what all did it assure him of — $2,500 in case of accidental death and disability, $100 for delay in delivery and $250 for loss of checked baggage, $500 as cash advance, $250 for loss of passport, $5,000 towards medical expenses, $1,000 as personal accidental liability and $10,000 for personal liability.
The policy also assured them $500 in case the trip was cancelled and $200 if it was curtailed, besides a daily hospitalisation allowance of $25 per day to a maximum of $300 and $20 per 12 hours to a maximum of $120 for trip delay.
What’s more, it also offered a burglary cover of Rs 1 lakh for their home in India during their absence. “It also offered $250 for a golfer’s hole-in-one bash,” said Kamesh.
“It’s always that feeling that misfortune will strike my neighbour, not me,” quips Sudhir Menon, head, travel insurance and worksite management, ICICI Lombard General Insurance. Barely two out of 10 Indians travelling abroad bother to take a travel insurance cover, he points out.
“Also, 60-65% of the trips are to neighbouring and South East Asian countries, and the proximity perhaps lends them a feeling that there is no need to buy insurance,” says Menon, pointing out that hospitalisation costs in Hong Kong or Singapore, can also be very expensive.
The overseas travel insurance market is growing at 30% a year and is likely to touch Rs 260 crore by the fiscal-end, compared with the overseas travel industry growth of 18% a year. Menon feels the industry’s full potential is over Rs 600 crore.
The insurance providers are aggressively target segments where there is a niche or potential. ICICI Lombard, for example, has the Bronze Plan aimed at those travelling to neighbouring countries, and a salt-and-pepper plan that covers elders up to 85 years of age, among a host of individual and family plans.
It is also focuses on the student segment, where there is a “genuine need,” says Menon. Bajaj Allianz has also introduced products for travellers to Asian countries even as it reaches out aggressively students and senior citizens.
“The Asian travel segment has been a late introduction, but the other segments we’ve had for a long time. The most important development, though, has been our tie-up with service providers abroad to ensure hassle-free and cashless services through a toll-free number,” said Kamesh Goyal, CEO, Bajaj Allianz General Insurance Co Ltd.
But, there is still a lack of awareness, says Menon, pointing out how many students still prefer to buy a cover after arriving in the US or the UK, even though it works out cheaper from here.
“Also, the cover should ideally apply right from the time you leave home to the time you are back home,” he avers, adding, ICICI Lombard’s home-to-home insurance product went live earlier this month. “And we also cover conditions like pregnancy or mental disorder, which would normally be in the list of exclusions there.”
posted by InCar Group Press Room at 10:09
0 Comments:
Post a Comment
<< Home