The increase reflects growing risk awareness amid higher international travel, frequent flight disruptions and unpredictable winter weather. However, most travellers remain cost-conscious.
Policies with a sum insured of ₹50,000 account for 86% of all purchases, while covers of ₹1 lakh make up about 10%, indicating a preference for basic protection at low premiums, the report showed.
Why delay and baggage covers matter
Industry data highlights why these covers are gaining relevance.
According to DGCA figures cited by insurers, weather-related issues accounted for 75% of flight cancellations in January 2025, while flight disruptions and baggage issues together form the largest share of passenger complaints.
“During the holiday rush and winter fog, comprehensive cover for delays, cancellations and lost luggage becomes critical for financial protection,” said Vivek Chaturvedi, CMO and Head of Direct Sales, Go Digit General Insurance, in comments to CNBC TV18.
He noted that travellers should check the delay threshold written into policies, as compensation typically kicks in only after a minimum waiting period.
For international travel, this is often four hours, while domestic policies may have lower thresholds.
Some insurers also offer airline-initiated cancellation cover due to extreme weather, though such benefits usually exclude cancellations caused by regulatory or government actions.
Common gaps last-minute travellers overlook
Chaturvedi said last-minute planners often underestimate the frequency of flight and baggage disruptions. DGCA data shows flight-related issues account for nearly 38% of passenger complaints, while baggage problems contribute about 19%.
“These risks are among the most common, yet travellers don’t always ensure their policy explicitly covers them,” he said. He added that insurance can still be purchased close to departure, either directly from insurers or during flight and hotel bookings on online travel platforms.
Balancing premium cost with coverage
The Niyo report suggests that travellers are planning more carefully overall, with nearly 57% of visas booked over 30 days in advance, signalling a broader effort to manage costs and reduce uncertainty
According to Chaturvedi, insurance premiums remain a small fraction of total trip costs, even during peak seasons.
“With premiums starting as low as ₹49, the cost of protection is negligible compared to airfare and hotel expenses, which often surge during holidays,” he said.
He pointed to cases where low-cost policies have covered high-value medical emergencies abroad, underscoring the importance of medical and evacuation cover alongside trip disruption benefits.
Clauses travellers should read carefully
Experts advise travellers to read policy wording closely, especially exclusions related to pre-existing medical conditions, adventure sports, minor delays below minimum thresholds, and cancellations announced well in advance. Sub-limits on accommodation expenses and strict claim timelines also require attention.
For winter and festive travel, fog- and weather-related clauses deserve special scrutiny, as not all disruptions automatically qualify for claims.
