India Travel Insurance Market Overview, 2030

India's travel insurance market has undergone significant transformation, evolving from basic marine and accident coverage to comprehensive, digitally accessible policies that address a wide array of travel-related risks. Historically, travel insurance in India was limited to trip cancellations and medical emergencies. However, with the rise in international travel, insurers began offering coverage for baggage loss, flight delays, and trip interruptions. The COVID-19 pandemic further accelerated this shift, underscoring the need for robust coverage against unforeseen events. As a result, the market has witnessed a surge in demand for policies that offer protection against a broader spectrum of risks. The market is experiencing rapid growth, driven by several factors. An increase in outbound travel, particularly among the younger population, has contributed to this expansion. Additionally, rising awareness about the importance of travel insurance and the adoption of digital platforms have made it easier for consumers to compare, purchase, and manage policies. The integration of artificial intelligence and data analytics has further enhanced the customization of travel insurance products, catering to the diverse needs of travelers. Despite this growth, challenges persist. Low penetration in emerging markets, fraud, and customer awareness gaps remain significant hurdles. Many travelers, especially those embarking on domestic or short-haul international trips, still perceive insurance as optional. This perception is prevalent in tier-2 and rural markets, where financial literacy is limited. Overcoming these challenges will be crucial for the continued expansion and maturation of India's travel insurance market.

According to the research report “India Travel Insurance Market Overview, 2030,”published by Bonafide Research, the India Travel Insurance market is anticipated to grow at more than 15.76% CAGR from 2025 to 2030.India's travel insurance sector is evolving rapidly, driven by both traditional insurers and emerging insurtech firms. Incumbent insurers such as Allianz, AXA, Chubb, Generali, and Tokio Marine are strengthening their presence through strategic partnerships and digital initiatives. Allianz's recent re-entry into the Indian market via a 50:50 reinsurance venture with Reliance's Jio Financial Services exemplifies this trend. These partnerships enable insurers to expand their reach and enhance their product offerings. Insurtech companies like Cover Genius, Revolut, and Lemonade are reshaping the landscape by offering embedded insurance solutions and micro-policies. Cover Genius, for instance, integrates insurance products into the customer journey of major digital platforms, providing seamless coverage options for travelers. This approach caters to the growing demand for personalized and on-demand insurance solutions. Aggregators such as Squaremouth and InsureMyTrip play a pivotal role in the commoditization of travel insurance by offering platforms that allow consumers to compare and purchase policies from various providers. These platforms enhance transparency and facilitate informed decision-making among travelers. Strategic positioning is evident through partnerships with online travel agencies (OTAs), airlines, and banks, as well as integrations with loyalty programs and telemedicine services. For example, Marriott and Flipkart have launched a dual loyalty integration program, allowing members to earn and redeem rewards across both platforms. Such collaborations aim to enhance customer engagement and provide added value to travelers. Mergers and acquisitions (M&A) and alliances between reinsurers and insurtech firms are fostering innovation in parametric insurance solutions. These collaborations aim to streamline claims processes and offer real-time assistance to travelers, thereby improving the overall insurance experience.

India’s travel insurance market is structured around three primary insurance types: single-trip, annual or multi-trip, and long-stay policies, each designed to address distinct traveler needs. Single-trip insurance is the most widely adopted, catering to infrequent travelers such as tourists, business professionals, and students taking short-term international trips. These policies provide coverage for medical emergencies, trip cancellations, baggage loss, flight delays, and emergency evacuations, with durations aligned to the traveler’s specific itinerary. Annual or multi-trip insurance targets frequent travelers, including business professionals and individuals undertaking multiple international journeys within a year. These policies consolidate coverage for numerous trips under a single contract, typically allowing each trip to range between 30 and 180 days, offering cost-efficiency and convenience while maintaining medical, trip disruption, and baggage protection benefits. Long-stay travel insurance addresses the needs of students, expatriates, retirees, and other travelers embarking on extended stays abroad, often spanning several months to multiple years. These policies provide comprehensive coverage that includes medical treatment, trip interruptions, evacuation, and other emergent risks, meeting both regulatory and visa requirements for long-term international stays. Across all insurance types, digitalization has enhanced accessibility, enabling seamless comparison, purchase, and claims management online. Insurers are also increasingly offering customizable add-ons for adventure activities, cruise travel, or specific regional risks. Growing awareness among travelers, particularly younger and student demographics, is driving adoption, while insurers continue to innovate with flexible, modular policies that combine convenience, affordability, and comprehensive protection to meet the diverse requirements of India’s expanding travel population.

In India, travel insurance coverage is structured to address the diverse risks faced by domestic and international travelers, with medical insurance serving as the cornerstone of most policies. Medical coverage typically includes emergency treatment, hospitalization, outpatient care, and medical evacuation, reflecting the increasing awareness among travelers of high healthcare costs abroad. Policies often integrate telemedicine support, multilingual assistance, and cashless treatment options, enhancing accessibility and reducing administrative hurdles. Trip cancellation and interruption coverage has gained importance, particularly in the wake of COVID-19 and other unpredictable events, reimbursing travelers for prepaid expenses in cases of illness, natural disasters, flight cancellations, or family emergencies. This coverage is crucial for travelers booking expensive flights or tours and contributes significantly to consumer confidence in purchasing policies. Baggage and personal belongings coverage protects against loss, theft, or delayed delivery of luggage, frequently bundled with other coverage types due to its high attach rate and relevance for both business and leisure travelers. Accidental death and dismemberment (AD&D) coverage provides financial protection in case of severe injury or death during travel, often tailored for adventure travelers, students, and families. Additional optional coverages include liability protection, travel delays, personal liability abroad, and specialized plans for winter sports, cruises, or trekking. Collectively, these coverage types highlight the modular and customizable approach of Indian insurers, allowing travelers to select protection aligned with their trip profile, duration, destination, and personal risk tolerance, while promoting digital access, streamlined claims processing, and enhanced traveler confidence in policy adoption.

The distribution of travel insurance in India is defined by a combination of online platforms and offline channels, reflecting both technological adoption and traditional customer engagement preferences. Online platforms have emerged as the dominant channel, driven by convenience, speed, and the ability to compare multiple policies in real-time. Insurers such as Tata AIG, ICICI Lombard, Bajaj Allianz, and HDFC Ergo provide digital portals that allow travelers to purchase, customize, and manage policies entirely online, including instant issuance of certificates and digital claim submissions. Aggregators and comparison websites like Policybazaar, Coverfox, and BankBazaar play a crucial role in enhancing transparency, allowing consumers to evaluate policy benefits, coverage limits, and premium costs across providers, thereby promoting informed decision-making and fostering competitive pricing. Online channels particularly appeal to younger, tech-savvy travelers, students, and professionals who value efficiency and the convenience of mobile and web-based solutions. Simultaneously, offline channels remain important for travelers who prefer personal consultation, such as older individuals, high-net-worth clients, or corporate travelers with complex itineraries. Banks, including ICICI, HDFC, and Axis Bank, frequently integrate travel insurance with credit card or premium account offerings, while traditional travel agencies and insurance brokers provide in-depth advice, policy customization, and support for claims, especially for long-stay or high-value international travel. The Indian market, therefore, reflects a hybrid distribution model, where online channels dominate for mass-market convenience and speed, while offline channels maintain relevance for personalized guidance, high-complexity policies, and trust-driven client interactions, ensuring comprehensive accessibility and engagement across diverse consumer segments.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Travel Insurance Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Insurance Types
• Single-trip Travel Insurance
• Annual or Multi-trip Travel Insurance
• Long-stay Travel Insurance

By Insurance Coverage
• Medical Insurance
• Trip Cancellation/Interruption:
• Baggage & Personal Belongings Loss
• Accidental Death & Dismemberment (AD&D)
• Others

By Distribution Channel
• Online Platforms
• Offline Channels Show more