SpiceJet ties up with Tata AIG for travel insurance

MUMBAI: Tata AIG General Insurance and low-cost carrier SpiceJet on Thursday announced a tie-up to cover travel related risks of the airlines' domestic passengers.

The travel insurance solution, 'Domestic TraveInsure', will offer an array of insurance covers for SpiceJet passengers for 30 days after they book the ticket.

The insurance cover would be provided for accidental death, emergency medical treatment, trip cancellation, baggage loss, flight delays and trip interruption among others for a premium of Rs 129 for all tickets booked online.

"The response was quite overwhelming on the first day itself with 1,000 policies sold since morning," SpiceJet Chairman Siddhanta Sharma told reporters. Daily 12,000 passengers book their tickets on SpiceJet's 55 flights.

"Travel insurance on domestic flights is very successful in all markets across the world and we see considerable potential for this in India as well," Sharma said.

Benefits like trip cancellation begins right from the time policy is bought and covers the passenger against cancellation of tickets under specific circumstances like hospitalisation and death of passenger, his co-passenger or their family members.

For accidental death, the insurance cover will be Rs 7.5 lakh, for emergency medical treatment the cover will be of Rs 1 lakh.

For baggage loss the cover will be of Rs 7,500 and for flight delay the passenger will be paid Rs 1,500 per six hours upto a maximum of Rs 10,500. "The policy launched by Tata AIG has been possible due to host-to-host integration that AIG has with the reservation system that SpiceJet uses," AIG President for South Asia Charles Bouloux said.

"Such integration has helped AIG Partner with many airlines in other parts of the world," Bouloux said. A traveller whether on work or leisure, will now be able to mitigate travel associated risks during the tenure of the travel, Tata AIG Managing Director Michael Carlin said.

Tata AIG General Insurance is a joint venture between the Tata Group and American International Group Inc (AIG). The company also offers travel insurance products for the overseas leisure and business travellers for the retail and corporate sector.