Have you ever observed how a “pre-ticked box” appears automatically while purchasing travel insurance online? While it is good to have travel insurance, such practices are considered cheeky and fraudulent when the end-user is not aware of buying travel insurance automatically. The Insurance Regulatory and Development Authority (IRDAI) has mandated insurers to prevent online portals or apps from automatically or designating a specific travel insurance coverage as the default choice.
Insurers must also check to see if these standards are followed at least once every three months. The cost of the premium plan with IRCTC is 35 paise per passenger, including all taxes, and covers costs of between Rs 10,000 and Rs 10 lakh.
According to IRCTC’s policy, each passenger listed on the PNR is covered in the event of passing away, permanent entire or partial disability, hospitalisation costs for injuries, the transportation of mortal remains, and hospitalisation expenditures for passing away. Travel booking websites automatically charge an insurance premium, even though IRCTC does not have this option selected by default.*
Providing information on travel insurance coverage, premium cost, and insurance provider to the customers will enhance transparency between the parties.
Before buying a ticket online, clients can expressly choose whether or not to purchase the coverage, and options are provided for opting out or deselecting the international travel insurance option. This increases transparency. The names of the insurance firms that supply the coverage, the cost of the premium, and the applicable tax rate (which must be separately stated) are also requested from insurers.
Most of the time, customers do not know what they are paying the insurance for. Travel insurance for international travel can be purchased whenever you like, B2B travel has virtually 100% travel insurance coverage because businesses want their employees to be protected, much like with corporate travel, according to a representative of the industry.
A travel insurance premium calculator is a convenient tool you can utilise online to check the coverage needed based on your requirements.
The stance taken by the Insurance Regulatory and Development Authority of India (IRDAI) underscores the importance of traveler choice and transparency in the insurance industry. By emphasizing that travel insurance cannot be pre-chosen, IRDAI ensures that travelers have the autonomy to select coverage tailored to their specific needs and preferences. This approach promotes fair and ethical practices within the insurance sector, safeguarding the interests of consumers and fostering a competitive marketplace. It highlights the significance of understanding one’s insurance options and making informed decisions when planning journeys, ultimately contributing to a more accountable and consumer-centric insurance industry in India.
*Standard T&C Apply
# Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.