Studying Abroad? Insurers go the extra mile to cover risks

Insurers are tweaking and diversifying their products to meet the requirements of Indians pursuing studies abroad, whose number is growing every passing year.

According to a ministry of external affairs estimate, 1.33 million Indian students are pursuing higher studies overseas this year. While the risks they face have increased with heightened geopolitical tensions - many Indian students had to leave Ukraine after the start of the Russia-Ukraine war - and high healthcare costs in several countries, there had not been many insurance plans addressing their specific needs. Insurance companies now see this as an opportunity.

HDFC Ergo is considering allowing students to customise their insurance packages. Tata AIG recently launched a policy with protection for two to three years, while ICICI Lombard covers accommodation expenses and return travel costs if the insured is advised to leave by authorities where they are studying.


Premiums have also increased for travel insurance to risky regions.

"For destinations like Israel or any other territory where individual situations could be much harsher, we have seen pricing go up by 20-25%, largely because of the trip cancellation uncertainty around travel," said Hiten Kothari, chief underwriting officer at HDFC Ergo.

The insurer is exploring unbundling its offerings, giving students the option to customise their insurance packages by adding overseas medical coverage. As universities abroad mandate insurance coverage for international students, Indian insurers are stepping up to meet such demands too.

"Universities abroad are trying to make insurance compulsory, with requirements that insurance companies in the student's home country cannot always match, such as an unlimited sum insured or plans affiliated with the Affordable Care Act (in the US)," said Jaideep Deorukhkar, vice president-sales agency and travel at Tata AIG.

"The cost of university policies is much higher than what we charge for an entire year," he said.

To compete, Indian insurers are introducing flexible and comprehensive plans that rival those offered abroad, often at a lower cost.

Tata AIG recently launched a policy called Travel Guard Plus, which is suitable for the student segment, and the company also offers another policy, Student Guard, which has extended coverage that spans two to three years.

ICICI Lombard plans cover fee reimbursements in case of study interruptions, bail bond coverage for arrests or detention, per diem allowance and pay-outs for hijacking, said Priya Deshmukh, its head of health products, operation and services.

Additionally, a 24-hour Smartline assistance helps students with travel emergencies and other needs like rebooking flights or arranging accommodations, Deshmukh said.

Nikhil Jain, founder of the international mobility marketplace ForeignAdmits, highlighted student worry emanating from rising healthcare costs, necessitating better insurance coverage. For instance, the UK's Immigration Health Surcharge has increased substantially, with a 12-month master's course now costing £1,164 in IHS fees, up from £705. "It's a flat fee for all international students," he said. Similarly, costs have risen by 5-15% in US and Canada, he said.