TRAVEL INSURANCE POLICY
The global travel insurance market is expected to hit $119 billion by end of this decade. Image Credit: Agency

Dubai: A sizeable number of UAE travellers are starting to add insurance cover om their trips.

“One thing the pandemic has taught us is to take necessary precautions,” said Neeraj Gupta, CEO, Policybazaar.ae. “We will see a rise in travel insurance especially for Covid or unexpected medical costs, loss or delay of baggage.”

The company saw a 150 per cent rise in sale of travel insurance policies in the second quarter compared to first one, it said in a statement. There was a “rise in demand from top tourist destinations such as the US, Schengen countries, Indonesia, UK amongst others - as a majority of these countries have made travel insurance mandatory along with other valid travel documents.”

Even in markets where travel insurance is not mandatory, travelers have sought COVID-19 coverage. They have also been concerned about their baggage getting lost or delayed due acute staff shortage at some airports. In most cases, the insurance company will help the customer track the luggage. If it can’t find it, the insurance will reimburse the traveler for the lost items.

“Baggage coverage is a very important benefit within travel insurance plans, as it can provide monetary assistance when things go wrong with your luggage during a trip,” the CEO added.

Delaying or losing check-in baggage is one of the most common adversities faced by travelers. Nearly 220,000 bags were ‘mishandled’ by US airlines in April, meaning they were lost, damaged, delayed or stolen, according to the most recent data published by the U.S. Department of Transportation. Especially in bigger European airports (Amsterdam, London etc.), many travelers fly via inter-connected flights - luggage was either being left behind or missing due to staff shortages.

The global travel insurance market size was valued at $12.38 billion in 2020 and projected to reach $119.31 billion by 2030.