India’s travel insurance market is booming. Sales have reached ₹1.20 lakh crore.
That’s huge.
According to a report by the Insurance Regulatory and Development Authority of India (IRDAI), the travel insurance sector has seen a 20% growth in the last fiscal year, with major players like Bajaj Allianz, ICICI Lombard, and Tata AIG leading the charge. As of March 29, 2026, 06:23:49 GMT, the industry is expected to keep growing, driven by awareness about the importance of travel insurance among Indian travelers.
The number of Indians traveling abroad is rising fast – over 2.5 crore in 2022, as per data from the Ministry of Tourism. And it’s expected to continue, with the Indian tourism industry projected to grow at a CAGR of 10% over the next five years. To cater to this demand, insurance companies are offering a range of travel insurance policies, including single-trip policies, multi-trip policies, and student travel insurance policies. HDFC Ergo’s travel insurance policy, for instance, provides coverage of up to ₹5 lakh for medical emergencies.
But what’s driving this growth? Sanjay Datta, Chief of Underwriting and Claims at ICICI Lombard, says it’s the increasing awareness about the importance of travel insurance, coupled with the rising number of Indians traveling abroad. He notes, “We’ve seen a significant increase in policies sold, particularly among younger travelers, who are more aware of the risks associated with traveling abroad.” Insurance companies are introducing new features and add-ons, such as coverage for adventure sports and natural disasters. Which is unusual, given the traditionally conservative nature of the industry.
The travel insurance market is shifting towards digital platforms, with many insurance companies offering online policies and claims settlement. Policybazaar’s travel insurance policy can be purchased online in just a few minutes, with the option to customize the policy.
It’s easy.
Coverfox’s travel insurance policy offers add-ons like coverage for lost or damaged luggage and trip delays.
And what about costs? They vary.
A lot.
The cost of travel insurance policies depends on the type of policy, destination, and trip duration. On average, a single-trip policy can cost ₹500 to ₹2,000, while a multi-trip policy can cost ₹2,000 to ₹5,000. But not having travel insurance can be much more expensive, with medical emergencies and trip cancellations potentially costing lakhs of rupees.
Since 2022, we’ve seen several high-profile cases where travelers have been left stranded or hospitalized abroad, highlighting the importance of having adequate travel insurance. Like in 2020, when a group of Indian tourists were stranded in Thailand due to the COVID-19 pandemic, facing significant medical and travel-related expenses. In such situations, having a comprehensive travel insurance policy can be a lifesaver.
The government is promoting the travel insurance industry, with the Ministry of Tourism launching initiatives to increase awareness about the importance of travel insurance among Indian travelers. The government has launched a campaign to promote travel insurance among students traveling abroad, with many universities and colleges now making it mandatory for students to have travel insurance before traveling overseas. It’s a rare admission – the government acknowledging the importance of travel insurance.
As the travel insurance market grows, new trends and policies will emerge to cater to demand. With digital platforms, insurance companies will offer more online policies and claims settlement, making it easier for travelers to manage their policies. To learn more about the latest developments in the travel insurance industry, visit our finance news section, which provides updates on the latest trends and policies in the insurance industry. You can also read our previous article on what a ₹30 lakh Asia trip can cost without travel insurance to understand the importance of having adequate travel insurance.
In conclusion, the travel insurance market in India is witnessing significant growth, driven by awareness about the importance of travel insurance among Indian travelers. Insurance companies are offering a range of policies and add-ons to cater to demand. With the government promoting the industry and digital platforms making it easier to purchase and manage policies, the future of the travel insurance market in India looks bright.
