The demand for travel insurance has grown significantly following the announcement of the upcoming Eid Al Fitr holiday, as numerous residents plan to travel abroad. However, insurance industry executives noted a shift in preferences, with residents increasingly opting for annual travel insurance rather than single-trip insurance.
Some UAE residents will be eligible for up to a nine-day Eid Al Fitr holiday, depending on the moon sighting. Eid is expected to be celebrated on Monday, April 8, if the holy month of Ramadan lasts 29 days.
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Travel from the UAE surges during long breaks as many residents travel abroad for vacations, especially in Schengen countries due to favourable weather conditions.
Toshita Chauhan, business head for health and motor insurance at Policybazaar, said there is an 80 per cent surge in demand for travel insurance during the Eid Al Fitr days compared to the same days last month.
Faisal Abbas, vice-president for employment benefits and general insurance at The Continental Group, said there have been a “definite surge” in travel insurance during the Eid holidays. “We have even seen clients opting for annual travel insurance instead of single-trip travel insurance.”
No increase in premiums this year
According to Continental Group, last year, it would typically cost between Dh280 and Dh320 for a family of four for worldwide cover for seven days.
“There hasn’t been a significant increase in costs this year. Costs of travel insurance products from most insurers haven’t significantly changed in response to demand. Compared to last year, many insurers have enhanced their travel insurance benefits relative to costs,” Abbas said.
Policybazaar data showed a five-day single trip premium to Thailand, Georgia, Azerbaijan, the UK, and Armenia costs around Dh39 per person during Eid. While 5-day travel insurance costs Dh67 to the US, covering basic travel insurance cover with a sum insured of $100,0000 for emergency medical.
Population destinations
According to Chauhan, Georgia, Armenia, Azerbaijan, the USA, the UK, Thailand, and Turkey are the most popular destinations for UAE residents to buy travel insurance. These have been traditionally the most popular locations for residents to travel during summer and other long breaks during the year.
Policybazaar said the average trip duration of the UAE residents to these popular destinations is five days during the upcoming 9-day Eid Al Fitr break.
The Continental Group’s Abbas said Schengen countries are in the highest demand, followed by the UK, US, Canada, and Singapore, with an average trip of 7-10 days during the Eid Al Fitr holidays.