The Insurance Regulatory and Development Authority of India (Irdai), on Monday recommended standard guidelines for travel insurance with an aim at ensuring uniformity and definition regarding coverage, eliminations and terms of coverage for both domestic and international travel.
The development is focused at boosting the reach of the product.
According to IRDAI’s guidelines issued on December 28, “The standard product shall have the basic mandatory covers as specified in draft guidelines which shall be uniform across the market. The product may be both as an individual product and as a group product.”
The guidance will help in initiating a standard travel insurance product with uniform coverage and policy wordings across the sector, said Irdai while unveiling the draft on “Guidelines on Standard Travel Insurance Policy.”
The exposure draft, on which the Irdai has invited comments from the stakeholders by January 6, 2021, also involves standard terms and conditions, customer information sheet as well as the use and file format.
The development is aimed at simplifying and broadens insurance’s reach across India. The insurance regulator has issued guidelines for the insurers to give a blue print of standard travel policies that has to be offered from April 1, 2021.