Indian travelers opting for travel insurance rose 43 per cent year-on-year, even among those who are going to short distances like Asian countries such as Thailand, UAE, Indonesia, and Vietnam, as seen
in Niyo data, a fintech in travel banking.
This trend is reflecting a behavioural shift among young Indian travelers from seeing travel insurance as optional to making it an essential part of the international travel checklist.
The sharp surge is primarily driven by young travelers, first-time flyers, and those undertaking short-haul leisure trips.
Niyo’s data further shows that 86% of travellers opted for Rs 50,000 insurance cover, a bracket typically chosen by those travelling to budget-friendly Asian destinations.
“A few years ago, travel insurance was seen as optional or good-to-have. Today, travellers especially younger ones are actively choosing it even for short-haul Asia,” said Vinay Bagri, Co-founder and CEO of Niyo.
Asian countries such as Thailand, UAE, Indonesia, and Vietnam continue to drive the highest volume of policies, primarily due to high travel frequency and affordable flight routes. At the same time, long-haul destinations like the United States see consistently strong insurance adoption, driven by far higher medical costs, stricter travel norms, and greater exposure to flight disruptions.
A slew of factors are contributing to the sharp surge in travel insurance demand. Growing awareness of medical risks and travel uncertainties has made travellers more conscious of the potential financial setbacks of international trips, the report added.
The steep rise in overseas healthcare expenses has further reinforced the importance of having adequate coverage. Additionally, the increase in flight delays, cancellations, lost baggage incidents, and last-minute disruptions has prompted more travellers to protect themselves in advance.
As Vinay Bagri added, “The rise of digital banking has made insurance more visible, accessible, and trustworthy. We are seeing travellers treat protection with the same importance as their passport, tickets, and hotel bookings.”
