Page 24 - Insurance Times May 2022

ICICI Lombard General Insurance Co. Ltd, however, may issue 03/2020 dated 04-03-2020. These guidelines have made it
policies based on certain conditions. Sanjay Datta, Chief - clear to insurers that CoV related claims are to be dealt with
Underwriting, Claims, Reinsurance and Actuary, ICICI expeditiously under their health policies. It is time that the
Lombard General Insurance Company Ltd., said, "It's an Regulator also takes similar initiatives in the sector of
advisory not a ban, therefore we are not bound by it. domestic overseas travel insurance for the convenience of
Insurance companies may or may not issue policies to people customers.
as it's a matter of covering their risks." In case a country is on
a ban list, the insurance company will not issue a policy, he Domestic Travel Insurance Covers
added.
Domestic Travel Insurance is also available across a large
number of public and private sector insurers in India. Since
Many travel policies cover losses due to ticket or
such covers are not mandatory, it is not essential to avail of
accommodation cancellation under their Trip Cancellation them for domestic travel, as against the requirement of such
Cover due to "death, serious injury or sudden sickness products for international travel to several countries, where
requiring minimum three days of hospitalization of the insured visa requirements make them a necessity. However, it would
or his spouse, parents or children. Inclement weather
be prudent to do so. Though the reasons for availing cover
conditions, natural disasters or the government imposing
may not seem to be as compelling, it is particularly necessary
compulsory quarantine or prevention of travel". Some experts
to avail of this insurance especially if the traveler does not
have opined that as the virus outbreak is not specified in the have standard Health Insurance and Personal Accident
Trip Cancellation clause of most standard travel insurance Covers. It is also quite useful to cover possible losses arising
plans, recouping these losses due to the Coronavirus related out of flight delays and cancellations.
cancellations are not possible.
All Indian citizens between six months to seventy years of
However in my opinion, if compulsory quarantine or age can avail of these policies. The exact age may, however,
prevention of travel by the government due to the Cov leads vary across different insurers. Foreign nationals in India can
to unexpected cancellations then such claims should qualify also avail of these policies with proper documentation, if they
for payment, as these causes are mentioned in the aforesaid
are present on work or tour. In fact such policies would be
cover. However, losses due to cancellation caused by fear of
quite useful for the latter category of persons.
contracting infection are not viable insurance risks. The
'cancel for any reason' clause/condition affords some level of As per the website of Bankbazaar.com , which describes itself
trip cancellation protection, if the same is available, and has as "a neutral online marketplace", most domestic travel
been opted for by customers.
policies offer a package encompassing many benefits.
According to this site, these benefits include the following:
There is however an ambiguity in relation to claims payment. 1. Accidental demise and PTD (24 hours)
The article goes on to say "A multi-trip or annual policy may
not require you to give the travel details in advance, so you 2. Coverage for accidental hospitalization
may get the policy. However, at the time of claim, expenses 3. Medical evacuation advantage in case of emergency
related to a trip to China may not be covered." This may be
4. Deportation of remains benefit
extended to include other places where the virus is now
spreading. The rationale is not clear as to how the writer has
arrived at this conclusion. In my opinion claims under a policy
which has already been issued cannot be withheld or rejected
unless the policy is cancelled by the insurers and premium
duly refunded.
It is quite clear from the aforementioned discussion, that
there is considerable divergence in the views expressed by
different insurers. This ambivalence is bound to confuse
customers. It is pertinent to note that the Insurance
Regulatory Development Authority of India (IRDAI) has
already issued Guidelines on handling of claims reported under
Corona Virus vide their circular no. IRDAI/HLT/REG/CIR/054/

24 The Insurance Times, May 2022