As flight disruptions due to adverse weather conditions wreak havoc on travel plans, a significant number of Pune residents remain unaware of their eligibility for domestic travel insurance claims, leaving a valuable resource untapped. Sucheta Dasgupta, a resident of Aundh, recently spent six hours stranded at Delhi airport due to foggy weather, incurring additional expenses for food and extended rental cab waiting hours. However, she was unaware that her domestic travel insurance policy could have covered these extra costs.
“I didn’t realize I had paid for travel insurance while booking my flight ticket. Under it, additional expenses owing to delay or cancellation can be reimbursed,” Dasgupta revealed.
Insurers point out that the lack of awareness about this product has hindered its growth. The one-time insurance, costing between Rs200-500 for short trips, covers expenses related to baggage loss, missed connections, medical emergencies, and flight delays. Manas Kapoor, business head of travel insurance at PolicyBazaar, noted, “Users typically opt for it as an attachment product via online booking portals. Five to eight claims are made per 100 policy purchases.”
The most common claims are in the trip cancellation space, followed by trip delays and missed connections, according to Aashish Sethi, head of health SBU and travel for Bajaj Allianz General Insurance.
Brijesh Unnithan, SVP of embedded insurance at ACKO, highlighted a major challenge for the adoption of domestic travel insurance—the lack of experiencing the benefits of the cover. He emphasized the need for the product to evolve, offering additional benefits based on travel time, sector, or specific issues faced.
As frustrated flyers seek ways to avoid uncertainty in travel plans, many have already begun canceling or rescheduling bookings for the upcoming long weekend and beyond. Online booking portal Cleartrip observed a 267% spike in cancellations for bookings until January 31 compared to regular volumes. Prahlad Krishnamurthi, Chief Business Officer at Cleartrip, noted a significant increase in rescheduling and cancellation spikes for routes between Pune and Delhi, indicating a growing need for reassurance and flexibility in travel plans
