Insurance players expect travel insurance to find more takers after IndiGo fiasco

IndiGo’s large-scale flight cancellations last week have pushed travel insurance into the spotlight, as insurers report a noticeable rise in demand. Thousands of passengers were stranded nationwide after the airline failed to adjust its crew schedules to new fatigue-management norms, leading to ruined holidays, missed family events and disrupted medical appointments.

Vivek Chaturvedi, CMO of Go Digit General Insurance, said uncertainty usually prompts travellers—who often ignore insurance—to reconsider. Events like mass cancellations, severe weather or peak-season delays encourage people to seek protection against unexpected disruptions. Industry experts note that only 7–8 out of every 100 domestic or international travellers currently purchase travel insurance, despite its clear advantages.

The trend could echo the post-pandemic surge in medical insurance for outbound travellers heading to expensive destinations such as the US, Europe and Australia. Cost misconceptions remain a major hurdle. Travellers hesitate to spend a few hundred rupees on domestic coverage and remain unaware of the substantial medical risks abroad.

Insurers are also witnessing increased queries related to missed connections and non-refundable hotel bookings, particularly among those with onward international travel. Trip-interruption claims typically rise 5–7% during such widespread operational breakdowns, even though medical claims remain dominant for overseas travel.