A new analysis of travel insurance claims has highlighted that medical emergencies are responsible for more than half of all claims, while flight and baggage delays account for nearly a quarter. The findings, released by TATA AIG General Insurance on World Tourism Day, shed light on how health-related risks and operational disruptions have become key concerns for Indian travelers.
While the pandemic may be behind us, unpredictability remains a major challenge in international travel. The latest data reveals that travel insurance has evolved from being an optional add-on to an essential tool for protecting against the uncertainties of modern travel. Health-related risks and logistical problems are now shaping how Indians approach their trips.
Health Emergencies Lead the Way
Between April 2024 and August 2025, medical emergencies—both outpatient and inpatient—represented a staggering 55% of travel insurance claims. These claims are driven by common travel-related illnesses, injuries, and emergencies like foodborne sicknesses, which are all too familiar to many travelers.
The high cost of medical treatment abroad can quickly spiral out of control, which makes travel insurance essential for providing financial protection. From unexpected illnesses to severe accidents, medical emergencies abroad are one of the most common reasons for Indians to turn to their insurance providers.
Logistical Disruptions Are a Close Second
The second-largest category of travel insurance claims is related to operational disruptions, particularly flight delays and baggage issues. Together, these account for 23% of claims, highlighting the widespread challenges faced by travelers when it comes to air travel logistics. Weather-related disruptions, overbooked flights, and mislaid luggage have become routine stress points for many, with airports struggling to manage the growing demand for air travel.
With these disruptions becoming more common, insurance has moved beyond just covering medical emergencies. Today, it also acts as a safeguard against unpredictable delays that can cause major travel headaches. This shift in the role of insurance reflects the growing volatility of air travel in a post-pandemic world.
Travel Insurance Trends: Insights and Demographics
The data also provides valuable insights into how Indians are using travel insurance. Nearly 99% of policies sold were for international travel, leaving domestic trips largely uninsured. Popular destinations for insured Indian travelers include the US, the UK, the UAE, Thailand, Singapore, and Germany.
The data also reveals that the younger workforce (ages 26-45) is the primary driver behind the demand for travel insurance. This demographic is actively purchasing insurance for leisure, business, and student travel. Additionally, the peak period for policy purchases falls between April and June, aligning with school holidays and summer breaks when outbound travel is at its highest.
Conclusion: A Necessity in Modern Travel
As international travel becomes more commonplace for Indians, so too does the need for reliable and comprehensive travel insurance. Whether for medical emergencies or operational disruptions, travel insurance has become an essential safety net, helping travelers manage the uncertainties that come with modern travel. With rising demand, especially among the younger population, and a growing reliance on insurance for international trips, the industry is evolving to meet the needs of today’s travelers.
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