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Picture credit: iStock-1195971216As Indian outbound tourism hits new highs, a parallel trend is gaining momentum — travellers are becoming smarter, more informed, and better prepared for the unexpected. The latest edition of ACKO’s travel report, ‘Checked In: India’s Year in Travel’, backed by insights exclusively shared with ET Travel World from Brijesh Unnithan, Senior Vice President – Embedded Insurance at ACKO, paints a detailed picture of how Indian travel behaviours are evolving in 2024-25, not just in terms of destinations, but also in terms of planning, risk assessment, and insurance adoption. A new chapter in Indian travel
With over 102,000 travellers insured by ACKO in 2024 and more than 49,000 travel policies issued, Indian globetrotters are clearly no longer taking chances. As Unnithan puts it, “Travel insurance is no longer viewed as a mere add-on; it’s becoming a non-negotiable part of the travel checklist.” This shift is driven by rising travel uncertainties—medical emergencies, delayed baggage, missed flights—and the increasing ease of digital-first insurance platforms that offer seamless, paperless experiences.
From digital nomads to bleisure travellers and students pursuing global education, ACKO’s policyholder base has diversified. “Digital nomads in the 26–35 age group and bleisure travellers aged 31–45 now represent close to three-fourths of all policies sold,” Unnithan said, noting the trend of merging business with leisure.
Where Indians are going – and what goes wrong?
Southeast Asia dominated Indian travel charts in 2024. Thailand led the way with 13% of total outbound travellers, followed by the UAE, USA, Vietnam, and Indonesia. Indian passports collected stamps from cultural capitals and coastal havens alike — from Bali and Phuket to Dubai and New York.
Surprisingly, destinations like Vietnam and the Caucasus—particularly Azerbaijan, Georgia, and Kazakhstan—saw a marked rise in popularity. “These regions drew more interest than traditional favourites like Spain or Australia,” said Unnithan. Affordable visas, Instagram-worthy landscapes, and shorter flight times played a key role in their emergence.
However, travel is rarely perfect. According to ACKO’s claims data, 33% of all travel claims in 2024 were medical in nature, with outpatient medical issues leading the chart. “Medical emergencies and trip cancellations were the most expensive claim types, with average medical claims at ₹27,000 and some hospitalisations exceeding ₹5 lakh,” Unnithan explained.
Interestingly, the UK topped the chart as the most expensive country for OPD-related claims (₹47,545 on average), followed by the USA at ₹30,396. But it was Southeast Asia—especially Thailand and Indonesia—that accounted for over half of all medical claims, proving high incidence even if costs were lower.
Bags lost, connections missed
Baggage delays emerged as another major disruptor. About 25% of ACKO’s settled claims in 2024 were for baggage delays, with an average compensation of ₹17,379. The worst offenders? The UK, Schengen countries, and the US — a trend echoed across major transit airports like Frankfurt and Dubai.
Flight disruptions also surged. With a 20% year-on-year spike in claims, ACKO covered 266 cases involving trip rescheduling, missed connections, and cancellations. Some of the most expensive delays cost travellers over ₹70,000 per incident — sometimes more than the cost of the flight itself.
The rise of the informed & insured Indian traveller?
Indian travellers are now prioritising bundled insurance plans. According to the report, 83% of policyholders opted for comprehensive coverage that includes medical, baggage, and trip disruptions. Notably, 99.48% chose medical cover — a clear reflection of rising health-consciousness post-pandemic.
“Travel insurance is not just about recovering money; it is about peace of mind,” said Unnithan. “Even a simple trip can get derailed by a delay or illness. A good policy ensures you’re covered both financially and emotionally.”
In an age of rising travel costs and increasingly complex itineraries, ACKO’s data highlights the financial and emotional value of preparation. One traveller, the report notes, filed five claims on a single trip—ranging from hospital visits to flight delays. Fortunately, they had bundled cover.
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To further boost insurance accessibility, ACKO is rolling out several product innovations and strategic partnerships. “We are actively working with OTAs and visa players to embed insurance at the point of booking,” Unnithan revealed. “We are also launching a new ‘Travel Pass’ that offers protection across multiple domestic flights — ideal for frequent flyers.”
Additionally, ACKO is developing niche offerings like CFAR (Cancel For Any Reason) and visa rejection insurance, targeting travellers who need flexible, no-questions-asked coverage.
The road ahead: Smart travel is safe travel
Outbound travel from India is projected to surpass $55 billion by 2034. Indian travellers already spend up to $7,000 on international trips, with overseas spending reaching $31.7 billion in FY24 — a 25% YoY jump. ACKO’s insights show that travellers from Tier 2 and Tier 3 cities are increasingly joining the travel boom — and they’re bringing a smarter, insurance-first mindset with them.
As Indian travel continues to rise, so do the stakes. “Plan your dream holiday, but plan for the unexpected too,” Unnithan advised. “Because the best trips are those where your insurance policy stays in your pocket.”
- Published On Jun 2, 2025 at 07:06 PM IST
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