Study abroad? Why it helps buying insurance from India

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₹25,000-30,000 for two years and provides coverage of $100,000 in the US. Despite this, the plans are not very popular. “Lack of awareness and convenience are reasons why parents tend to go with a university-backed plan.

In my case, when my son went to the US last year, due to lack of time, I went with the insurance that the university provided for the first semester but I will buy a student international travel plan before the next semester starts," says Priya Deshmukh, head of health products, operations & services at ICICI Lombard. Interestingly, some US universities also allow you to have a non-campus plan. However, in such private plans, it is necessary to have unlimited sum insured.

Indian insurance companies do not offer such unlimited coverage, but that is something they have taken note of. “Many insurers are coming up with unlimited coverage plans that will meet the university requirements and we would be seeing a flurry of products during the June-July admission season," says Amit Chhabra, health business head, Policybazaar.com. When a university itself is offering a health insurance plan, it is obvious that parents will choose the on-campus plan instead of exploring other options, say some insurance experts.

So, how does that affect student travel plans offered by Indian insurers? Deshmukh says that at least 20% of all travel insurance policies sold at ICICI Lombard are student travel plans. Canada, US and Malta (Europe) account for the top three countries for which such plans are sold. Data from University Living, an education counsellor, shows a year-on-year jump of 74% in US-related student travel plans and 81% in Canada in 2023.