Kathmandu. Awareness about travel insurance in India is growing at a rapid pace. However, this awareness has not yet fully translated into insurance buying behavior.
According to the WonderSafe Report 2025 published by ICICI Lombard General Insurance, 6 out of 10 Indian tourists currently actively buy travel insurance before travelling. Before the COVID-19 pandemic, this rate was 54 percent. This indicates that the experience of the pandemic has brought about a significant change in people’s awareness and attitudes towards travel risks.
According to the report, nearly 90 per cent of the population in India is aware of the importance of travel insurance. However, despite this high level of awareness, there is still a limited understanding about insurance coverage, terms and conditions, and limitations. As a result, interest in buying insurance has not reached the required level and there is a clear gap between awareness and actual adoption.
This gap is even more pronounced among those who are not interested in travel insurance. Almost half of the tourists cited lack of information and lack of clear understanding as the primary reasons. Meanwhile, the cost of insurance is a major barrier for almost a third, and nearly 20 per cent believe that insurance does not provide any additional benefit to their specific journey. This attitude shows that many people still do not fully understand the need and practical importance of insurance.
Its importance to travel insurance buyers is largely related to risk management. Accidental death, hospitalization costs, flight cancellations or delays, lost luggage and safety during adventure activities – these are the areas where travelers discover the true value of insurance. In fact, this trend is also reflected in insurance claims.
Medical expenses, trip cancellations or delays, lost luggage, and loss of necessary travel documents are responsible for the majority of insurance claims. However, the report also revealed that many claims are rejected due to policy exclusions, deductibles, or non-fulfillment of certain conditions. This affects consumer confidence.
The report also highlights important social and generational trends in travel habits. Among the tourists surveyed, 63 percent were male and 37 percent were female. Generation Z, Millennials, and Gen X all expressed strong traction in Asian countries due to their easy visa process, significantly lower costs, and better air connectivity. However, there are also clear differences in destination preferences by generation.
Young tourists, especially Genji and Millennials, are more interested in long-haul destinations, such as Australia, Europe or the UK. While GenX still prefers short-distance destinations.
