How Overseas Education Insurance in India Is Evolving to Protect Students Abroad
Overseas education insurance has cropped up as an important aspect, with 1.33 million Indian students heading overseas for higher education this year. The increasing need for customized insurance products shows that companies will have to introduce more variety and fine-tune their products to cater to the emerging needs of the students. With the increasing geopolitical risks-the War in Russia and Ukraine-and increased healthcare costs in most countries, comprehensive and tailored insurance plans are in greater need than ever before.
Growing Demand for Custom-Made Insurance Cover
The fact remains that Indian students going abroad are prone to a number of risks that range from sudden medical emergencies to risks of political turmoil that may finally force them to leave a country without notice. Most of these, conventionally, are either partly covered or not covered at all by insurance providers. However, with the increasing demand, insurers are trying to fill this gap.
HDFC Ergo is now considering offering customisable insurance packages specifically designed for students from among leading insurance companies. Given that, students would be able to customise according to their needs, such as overseas medical expenses, cancellations of trips, or emergency evacuations, among others. The art of unbundling and customising these packages will become imperative with increasing complexity in students’ insurance needs.
New Products for Emerging Needs
Given the increasing sensitivities, Tata AIG recently launched two new policies targeted at the student segment. While its Travel Guard Plus policy offers comprehensive cover, its Student Guard policy covers the students for two to three years continuously. In fact, this is just what students need when pursuing a multiyear education program in a foreign country.
More recently, ICICI Lombard joined the fray with covers including accommodation cost, the cost of travel back home in the case of emergency evacuations, or even reimbursement of tuition fees in case of interruption of studies. The insurance provider also offers 24×7 Smartline assistance in case of travel emergencies to make life just a little easier for the student or their family.
Costs Rise in High-Risk Areas
Insurance covers for students going to high-risk zones such as Israel will be very expensive. With increased cancellation of trips and other uncertainties, the premium in these zones has increased by 20-25%, says Hiten Kothari, Chief Underwriting Officer, HDFC Ergo.
This trend reflects broader market forces at play, such as escalating healthcare costs and the compulsions imposed by foreign universities to introduce compulsory insurance policies. For instance, in the UK, the Immigration Health Surcharge has jumped significantly, with students required to pay 1,164 pounds for a 12-month master’s course compared to 705 pounds previously. There have been similar jumps in the US and Canada.
The Winning Edge of Indian Insurance
Despite these pitfalls, Indian insurers have managed to stay ahead of the game. Their more flexible and comprehensive plans at lower costs compared to those offered by universities abroad make them a popular choice for students. This is an important thing because international students seek affordable yet extensive coverage that protects them against the unexpected challenges associated with studying abroad.
Conclusion
As students from the country are increasingly studying abroad, the insurance landscape, too, is constantly and fast-pacedly changing to meet the needs of students. With companies like HDFC Ergo, Tata AIG, and ICICI Lombard spearheading, Indian insurers have been designing plans for students that are more relevant, flexible, and comprehensive enough to ensure excellent protection, whatever the destination of the students.
