Travellers book long-term insurance as Schengen visa rules come into play

Indian passport holders can now secure long-term multiple-entry Schengen visas for two or five years, especially if they've previously travelled on a Schengen visa. Already, there's a 3-4 per cent increase in users booking travel insurance policies exceeding 45 days in April 2024, a trend expected to rise further due to the relaxed visa norms, shows data analysed by Policybazaar.

Schengen destinations have also  seen a 100% jump in senior citizen travellers. Schengen destinations are the 26 European countries that have formally abolished border control at their mutual borders. This allows travelers to move freely between these countries without the need for passport checks. These include Belgium, Czech Republic, Denmark, Germany, Estonia, Greece, Spain, France, Italy, Latvia, Lithuania, Luxembourg, Hungary, Malta, Netherlands, Austria, Poland, Portugal, Slovenia, Slovakia, Finland and Sweden, along with Iceland, Liechtenstein, Norway and Switzerland.

According to Policybazaar's data, a whopping 82 per cent of Indian travellers are drawn to destinations like France, Switzerland, Italy, Germany, Netherlands, and Spain in the upcoming travel season.

Policybazaar’s data indicates that travellers to Schengen destinations aged 70 and above have doubled in number since FY23. Interestingly, the proportion of Indian travellers aged 31-45 visiting Schengen countries has also increased compared to last year.

Not just this, this year also saw a notable 15% increase in travellers declaring pre-existing conditions (like Diabetes, Hypertension, etc) when travelling to Europe as compared to last year.

Also, this year, the travellers have shown a remarkable interest in selecting appropriate add-ons for their travel insurance. Riders covering baggage or belongings loss, trip cancellation, adventure sports coverage, and pre-existing disease (PED) coverage emerged as the most sought-after add-ons for travel insurance.

1)  Trip cancellation/interruption coverage: This travel insurance rider reimburses you for non-refundable trip costs if you need to cancel or interrupt your trip due to covered reasons like illness, injury, or death of a family member.

2)  Adventure sports coverage: If a traveller plans to engage in activities like skiing, scuba diving, or mountaineering, this rider provides coverage for injuries or accidents related to these high-risk activities.

3)   Baggage delay/loss coverage: This travel insurance add-on reimburses for essential items purchased due to delayed baggage or compensates you for lost or stolen luggage.

4)  Pre-existing medical condition coverage: If a traveler has pre-existing medical conditions, this rider provides coverage for medical expenses related to those conditions during the trip.

5) Cancel for any reason (CFAR) coverage: Unlike standard trip cancellation coverage, CFAR coverage allows you to cancel trip for any reason and receive a partial refund of your trip costs. However, this rider typically comes with additional restrictions and higher premiums.

There has also been a 40% drop in users buying travel insurance in Euros, which can be attributed to the fact that embassies now accept coverage in dollars.

Manas Kapoor, business head of Travel Insurance at Policybazaar.com, pointed out a surge among Europe-bound travellers who booked long-term travel insurance, after the new visa rules came into effect.

The new Schengen visa regime entails a stark departure from previous rules. Previously, Indians who wished to travel to one or more European countries were granted Schengen visas for a maximum of three months.

Under the new "Cascade" system, frequent travelers can now qualify for:

Two-year Schengen visas: This is a significant improvement compared to shorter validity periods offered earlier. To qualify, applicants must have used two Schengen visas effectively within the preceding three years.

Five-year Schengen visas: Upon successful utilization of the two-year visa, travelers can potentially get a five-year visa, provided their passport remains valid.

Simplified process for frequent travelers:  The new system aims to reward frequent travelers with a proven track record by offering them easier access to visas with extended validity.

Here are some additional points to consider:

The specific requirements and application process for Schengen visas can vary depending on the country you plan to visit first. It's always best to check the official website of the relevant Schengen embassy or consulate for the latest information.

While the new rules offer extended validity for frequent travelers, the overall visa application process remains. You'll still need to submit necessary documents, pay visa fees, and attend an interview in some cases.

What are Schengen Visa Travel Insurance Requirements? 

As per Regulations laid by the European Parliament, travel medical insurance must fulfil the following Schengen visa requirements:

A medical coverage of at least €30,000.

It must offer coverage for all the Schengen nations.

It must cover expenses related to repatriation due to medical emergencies, immediate medical attention or emergency hospitalisation in the Schengen country (s).

Validity and Coverage Period:

The insurance must be valid throughout the entire Schengen area.

For one or two entries: The insurance coverage period must match your entire intended stay in the Schengen zone.

For multiple entries: The insurance needs to cover your first intended visit only. However, you'll need to be aware of the need for insurance for subsequent stays (signing a statement acknowledging this on the application form).