Passengers can buy cover for even short delays.
In an attempt to help people stuck at the airport waiting due to delayed flights, newage non-life company Digit Insurance has come up with an insurance scheme which compensates the passengers for whatever they buy to pass their time at the airport.
Digit Insurance is using data mining and analytics to develop low-cost micro products including a cover for flight delays of 60-75 minutes for a double-digit premium. The idea behind the flight delay policy is that passengers usually end up spending more money in the airport if they have to wait an additional hour. They will either buy a book or spend time in a coffee shop. The insurance cover compensates them by paying a claim amount of ₹1,000.
Given availability of flight data, the insurer can alert the buyer to claim an entitlement as soon as the flight is delayed. All the customer has to do is click on a link and upload the image of his boarding pass to receive the claim amount. According to Digit Insurance chairman Kamesh Goyal, the flight delay policy is bundled into the travel cover currently, but the company will be offering this as a standalone product that can be bought directly or through distributors. The insurer’s analytics of flights have shown some interesting findings such as the morning flights on Tuesdays are the best option to avoid delays while those who fly after 10 pm on a Friday are most likely to face a delay.
Source: Economic Times
Date: 17th September 2018