Non-life insurers are inspired by the announcement of travel insurance for train passengers presents in the Railway Budget.
“Insurance companies are being asked to provide optional travel insurance to passengers prior to travel,” Railway Minister Suresh Prabhu, said.
Currently, the domestic travel insurance market is about 8-10 percent of the total travel insurance market of Rs 500 crore, of which the main chunk is generated from the airline segment.
“We do hope that 10-15 percent of the train passengers going in for travel insurance over a period of next couple of years. It is likely to help increase insurance penetration in the country as a whole,” Tata AIG GI president M Ravichandran said.
At present, around 90 percent of the insurance premium income under travel insurance section comes from the domestic flyers going on abroad trips.
“This is a good initiative as it increases insurance penetration and gives some financial protection to passengers against unfortunate circumstances while travelling,” Future Generali India Insurance Managing Director And Chief Executive Krishnamoorthy Rao said.