The Growing Popularity Of Travel Insurance In India And Its Impact On The Country’s GDP

Travelling is wonderful because it allows you to see incredible architecture, appreciate works of art, sample local cuisine, and create memories. Nothing compares to packing your bags and leaving to travel the world. What if something goes wrong, though? Travel insurance can help with that. Thanks to the growth of online travel insurance in India, ensuring your travels are covered is simpler than ever.

For any trip, travel insurance is a necessity. Travellers can enjoy their trips stress-free thanks to the financial protection and peace of mind it offers. It covers many potential problems, including medical emergencies, lost luggage, and cancelled flights. In case of an accident or injury, it also provides financial protection. With a dependable travel insurance policy due to several travel insurance benefits, you can feel secure knowing you’ll be covered in any mishaps.

Contribution Of The Travel And Tourism Industry To India’s GDP

The travel and tourism industry was recovering from the lockdown’s aftershocks after the pandemic. As a result, there has been a marked decline in demand and revenue, which has immediately affected the nation’s GDP. In 2019, India’s tourism industry contributed 8.8% of the country’s GDP; in 2020, this figure dropped to 8.2%.[1] This is a sizable decline, particularly for a sector as crucial to the national economy as this one. However, there has been a sharp increase in demand for travel insurance after two years of unpredictable travel, and several causes exist.

In India, There Is A Rising Need For Travel Insurance

Since the Indian economy is expanding quickly, more people can now afford to travel for pleasure or business abroad. The demand for online travel insurance policies increased in FY21–22 compared to pre–covid levels in FY19–20. As a result, travel insurance is now more important than ever to protect against unforeseeable events like medical emergencies, flight delays, and lost or stolen luggage. * Travel insurance offers travellers peace of mind and boosts India’s GDP. India’s travel insurance market is predicted to reach USD 892.29 million in 2022, expanding at a CAGR of 17.65%. Additionally, it is anticipated to grow to USD 11.25 million by 2027.

Union Budget 2023 And Boosting The Travel And Tourism Sector

India’s travel and tourism sector increased the nation’s GDP by about 178 billion dollars in 2021. However, less than 1% of the global travel insurance market is accounted for by the Indian market for travel insurance.[1] 

The Union Budget 2023 is taking significant steps to support the Indian travel industry by allocating a whopping Rs. 2400 crore to the industry.[1]  Seeing that the government has made tourism one of its main priorities is lovely. To advance tourism promotion, Nirmala Sitharaman, the finance minister, has also recommended the active involvement of states and public-private partnerships. This is a move in the right direction, and the industry will undoubtedly benefit from it.

Make sure you always pay your travel insurance policy premium on time.

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

Standard T&C Apply

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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