New IRDAI Rule: Forced To Buy Travel Insurance By Agent? Do This

New IRDAI Rule: Forced To Buy Travel Insurance By Agent? Do This

General and Standalone, Health Insurance Companies must follow some customer-friendly rules when offering their travel insurance products, according to the Insurance Regulatory and Development Authority of India (IRDAI). The rules clearly state that for domestic travel, the insurers cannot collect the premium more than 90 days before the trip’s start date or when the tickets are purchased, whichever comes first. There are no time restrictions that apply to foreign travel insurance. However, coverage for international travel may be issued at any time.

Additionally, IRDAI has published guidelines that must be adhered to for any travel insurance coverage sold through a group platform, a travel agency, or a website.

Here Are Some Significant Travel Insurance Recommendations:

  • It is the responsibility of insurers to guarantee that those who will be insured make an educated decision.
  • The prospect will have the option of deciding whether or not to purchase the coverage.
  • When choosing to get travel insurance, the insurer’s name and premium payment must be made explicit as the cost of the policy. The tax component must be displayed separately.
  • Insurance providers must ensure that no app or site offering travel insurance coverage pre-selects the purchase of travel insurance as the default option.
  • When buying is chosen, there must be a way to change your mind and deselect the choice before the transaction is completed.
  • The prospect or policyholder can review the benefits, terms, and conditions of a travel insurance policy, and consent is obtained by selecting a radio button.

Even though domestic travel insurance still only accounts for a minor fraction of the market, the new standards established by the IRDAI will benefit both the insured and the insurers. The decision to give consumers purchasing tickets the choice of whether they want the cover is a positive move, especially given that the reforms come as the travel insurance market expands. Thus, in addition to being aware of what he is purchasing, the consumer will also have the opportunity to read and accept the terms and conditions. The regulations would increase transparency for the insured and the insurer and stop misspelling.

You now know what to do the next time you are asked to add a travel insurance policy to your vacation plans. Before purchasing international travel insurance, make sure to understand the inclusions and exclusions.

The new IRDAI rule regarding agents’ enforcement of travel insurance raises important considerations for travellers. While the rule aims to enhance financial protection, individuals must evaluate their specific requirements before deciding. By conducting thorough research, comparing policies, and seeking advice, travellers can make informed choices that align with their needs and ensure a safe and secure journey. 

A travel insurance premium calculator is a convenient tool you may utilise online to check the amount of coverage needed based on your requirements.

Standard T&C Apply

Tax benefits are subject to change in prevalent tax laws.

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.

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