In a significant shift in travel behaviour, what was once considered an optional add-on is now seen as a necessity for millions of Indians flying abroad. The uptake of overseas travel insurance has surged dramatically over the past six years, driven by soaring medical costs overseas and a heightened awareness of travel risks in the post-pandemic world.
Soaring Numbers: A 91% Jump in Coverage
According to the latest annual report from the Insurance Regulatory and Development Authority of India (IRDAI), the data reveals an explosive growth trend. In the financial year 2024-25, a staggering 96.7 lakh lives were covered under approximately 27.9 lakh individual overseas travel insurance policies.
This marks a massive 91% increase compared to the 2018-19 period, when 50.5 lakh lives were covered through 25.8 lakh policies. The financial heft of this sector has grown in tandem. The gross premium income from overseas travel insurance reached Rs 1,267 crore in FY25, a substantial 67.4% rise from the Rs 757 crore recorded in FY19.
Private general insurers have consolidated their dominance in this space, seeing their market share in gross premium income grow from 81% in FY19 to 84% in FY25.
The Drivers: Medical Bills and Flight Chaos
Industry experts point to a fundamental change in how Indians approach international travel planning. Meet Kapadia, Head of Travel Insurance at Policybazaar, explains that while the pandemic served as an initial trigger, the sustained growth indicates a deeper, more permanent shift in mindset.
"Indian travellers are now travelling with a sharper understanding of risk," Kapadia said. "Medical treatment overseas can be five to eight times more expensive than in India, even for non-critical care. Beyond medical emergencies, recent flight disruptions have also made the financial impact of delays, missed connections, and extended stays far more pronounced."
This insurance boom coincides with a robust recovery in outbound travel. The Ministry of Tourism's India Tourism Statistics report shows Indian outbound departures rose by 14.7%, from 2.7 crore in 2019 to just over 3 crore in 2024.
Key Segments and Future Outlook
The demand is broad-based. Dev Karvat, Founder and CEO of global assistance and travel insurance provider Asego, notes that while leisure travellers form the largest segment, other groups are significant contributors.
"Business travellers, students, and long-term travellers, including professionals on overseas assignments, also opt for it," Karvat stated. He highlighted a particularly important demographic: "Senior citizens are an increasingly important segment, with rising outbound travel among older Indians driving demand for specialised medical coverage and dependable emergency assistance."
It is important to note that this growth has occurred even though overseas travel insurance is not universally mandatory. It is, however, a strict requirement for visas to destinations like the Schengen countries.
Ravi Gosain, President of the Indian Association of Tour Operators, connects this insurance trend directly to the sector's health, stating it "reflects the strong revival of outbound travel from India." The numbers clearly show that for the modern Indian traveller, securing financial safety is now an integral part of the journey.
