Tata AIG General Insurance has launched a travel insurance policy for the first time in India, in an exclusive tie up with low cost carrier SpiceJet.
With this passengers on SpiceJet will be able to avail of insurance cover for accidental death, dismemberment, accidental medical emergency, trip cancellation, baggage loss and flight delays during their travel.
Domestic TravInsure - as this policy is called - is available on SpiceJet’s website, and can be procured while booking ticket online. The one time premium of Rs 129 for a particular trip per passenger across all sectors can be made through SpiceJet’s payment gateway. The payment is made while booking the ticket.
This facility is not available for SpiceJet passengers booking their tickets through call centres or at ticket windows.
This policy can mitigate the problems arising out of sudden cancellation of tickets due to a death in the family, sudden illness or a co passenger falling sick.
This would also take care of passenger’s expenses caused by flight delays. In case of delays due to uncontrollable circumstances, passengers can get paid Rs 1500 per hour to a maximum limit of Rs 10,500 that would take case of their hotel and food expenses.
Unlike full service carriers, low cost carriers sell their tickets based on the actual availability of seats and never refund money in case of cancellations causing financial loss to passengers. They also do not provide any hotel accommodation in case of flight delays.
“Four per cent of our passengers cancel their tickets and they don’t get any refunds. This policy will give such passengers protection. This is a value added service for our guests,” said SpiceJet chairman Siddhant Sharma.
He added, “ This policy would add value to the passenger’s entire travel itinerary and not just the flight. It protects passengers on various modes of transportation for 30 days. We see considerable potential for travel insurance for domestic flights in India.”
Though Tata AIG was talking to several other Indian carriers, the unavailability of cutting edge technology prevented implementation. “This has been possible due to host to host integration that AIG has with the reservation system that SpiceJet uses,” said Charles Bouloux, President AIG, Middle East & South Asia. AIG has introduced similar policies for Air Asia of Malaysia, Pacific Airlines, Tiger Airways, Jet Star, Virgin Atlantic, and British Airways.
Though all general insurance companies in India sell travel insurance policies, it is yet get volumes. Last year a total of 600,000 policies were sold amounting to nearly Rs 250 crore. Out of which Tata AIG’s share was Rs 50 crore. Globally AIG mobilises $1 billion as travel insurance premium.
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