Indian Travellers Are Buying Travel Insurance in Bigger Numbers and With Larger Cover as Geopolitical Risk Reshapes Trips, Policybazaar Says

More Indians are buying travel insurance, and they are buying bigger policies. That is the picture from data from Policybazaar, an Indian online insurance marketplace, reported by Outlook Money on May 9, 2026, with related coverage by Business Today. According to the report, travel insurance policy purchases rose by 22% compared with the previous year. This article summarises those reports. An earlier version of this article said that the number of travellers buying cover above $250,000 almost doubled, that 82% of Indian outbound travellers skip travel protection, that Japan bookings rose 17% and that UAE bookings fell more than 70%. We could not find those figures in the reports we reviewed, so they have been removed. The figures below are the ones the reports contain.

What is behind the growth? The report points to several factors. Overseas medical treatment and medical evacuation are expensive, and travellers are aware of the cost. It also names the US-Iran war as a recent source of Middle East tension, and says insurers are offering more flexible policies for cancellations and interruptions. Policybazaar's data does not by itself prove that geopolitical events caused the increase, and it may also reflect growth in overseas travel, rising incomes and more online purchasing. The report does not give an estimate of how much each factor contributes.

How much cover are people buying? Basic policies with about $10,000 of cover were once common, the report says. More travellers now choose plans with $250,000 of cover, because medical bills abroad, particularly in countries such as the United States, can be far higher than the older, smaller limits. The report does not give the proportion of travellers who buy the larger plans, so we cannot say how widespread the shift is.

What do people want covered? The report gives these figures: 75% of travellers opt for medical cover, making it the most important reason to buy travel insurance. Nearly 50% are considering trip cancellation cover, and 40% are considering evacuation cover. Evacuation cover pays for transport to a suitable hospital or home after a serious illness or injury, and costs for such transport can be very high. Solo travel makes up over 76% of trips, according to Manas Kapoor of Policybazaar. Travelling alone can increase the importance of insurance because there is no companion to help in an emergency, though the report does not draw that conclusion explicitly.

What does travel insurance typically not cover? This is general information and not drawn from the reports above, so readers should check their own policy. Many policies exclude losses caused by war or by events that were already known when the policy was bought, so buying cover after a conflict has started may not protect against disruption from that conflict. Pre-existing medical conditions, adventure activities and travel against government advice are other common exclusions or limitations. A cancellation benefit may cover only certain listed reasons. The only reliable way to know is to read the policy wording and ask the insurer or seller before buying.

How should a traveller choose? Compare the sum insured for medical expenses against the cost of care in the destination. Check whether evacuation is included and to what limit. Look at the cancellation and interruption terms and the exclusions for war, terrorism and civil unrest. Check the claims process, including whether the insurer has a cashless network for hospitals abroad. The price of a policy is usually small compared with the cost of a trip, but a cheap policy with low limits may not be useful in a serious emergency.

Is there a protection gap? Many travellers still travel without cover. The reports we reviewed do not provide a figure for how many, and we do not give one. The point stands that insurance is optional for most destinations, though some countries require proof of cover for visas.

What does it mean for insurers? Rising demand and larger cover raise premium volumes, but also expose insurers to higher claims if medical costs abroad keep rising or if conflicts disrupt travel at scale. Insurers adjusting their policies to be more flexible on cancellations may face higher claims in return. The Insurance Business reports on war-risk marine cover, covered elsewhere on this site, show how conflicts can quickly reprice risk in specialist markets.

A final practical point concerns timing. Cover that is bought soon after booking a trip often includes better protection for cancellation, because the reasons for cancelling have not yet arisen. Travellers should also keep records, including receipts, medical reports and airline notices, because insurers usually require documents for claims. Those who travel often may find an annual multi-trip policy cheaper than buying separate policies, though the limits and the maximum length of each trip should be checked first.

This article is general information based on press reports of marketplace data. It is not insurance advice, and Policybazaar's figures reflect its own customers and not the whole market.