Schengen rush: 19% rise in Indian trips, 62% pick $250,000+ insurance cover

More Indians are travelling to Europe this year, with Schengen travel growing by 18.95% in the first quarter of 2025 compared to the same period in 2024, according to Policybazaar, an insurance marketplace. Germany, France, and Switzerland continue to rank among the top five destinations, with a sharp uptick in demand for travel insurance that offers both high cover and niche add-ons.

 

Germany and France remain favourites

 

Data compiled by Policybazaar shows Germany accounted for 20% of all Schengen-bound Indian travel in the first three months of the year, followed by France (17.57%) and Switzerland (10.67%). The Netherlands and Italy rounded out the top five.

 

 

Germany’s popularity is partly driven by a mix of business and leisure travel. Switzerland and the Netherlands, meanwhile, are attracting tourists interested in adventure experiences—leading to a rise in insurance products offering cover for activities like skiing and hiking.

 

Women travellers are leading the shift

 

Travel among Indian women rose by 19% during the quarter, outpacing the 13% growth recorded among men. This is linked to the growth to a rise in solo and small group travel, with women showing a preference for insurance plans that include trip cancellation, flight delay compensation, and emergency medical assistance.

 

“Women travellers, in particular, are leading this shift with a 19% uptick—opting for more comprehensive plans and essential add-ons like visa fee refund and trip cancellation coverage,” said Meet Kapadia, head of travel insurance at Policybazaar.

 

Visa rejection worries spark demand for refund cover

 

With a 15.7% Schengen visa rejection rate in 2023, Indian applicants lost nearly €12.1 million (₹109 crore) in non-refundable fees. In response, around 20% of travellers now choose a Visa Fee Refund rider as part of their insurance cover.

 

Demand grows for higher coverage policies

 

62% of Indian travellers now choose insurance coverage of $250,000 or more  

Senior citizens tend to pick plans with over $500,000 in coverage, largely for hospitalisation and emergency care  

Comprehensive plans that include pre-existing disease (PED) benefits and evacuation services are becoming more common  

 

“With 62% of travellers now choosing $250,000+ coverage, it’s evident that customers are prioritising peace of mind over cost,” Kapadia said.

 

Most insurance sales take place ahead of spring holidays

 

Around 60–80% of travel insurance policies for European trips are bought between February and April, in line with spring and early summer travel planning. March and April are particularly busy.

 

Travellers buying policies in advance

 

76% of travellers now purchase insurance 45–50 days before their scheduled departure 

 

Early buying is driven by visa requirements and growing awareness of risks like flight delays and medical emergencies  

 

Millennials and Gen X make up half of buyers

 

Generation X (30%) prefers plans with broad medical and business cover  

Millennials (20%) go for digital-first policies with flexible terms and faster claims  

Gen Z (26%) chooses basic plans with budget-friendly add-ons like gadget protection  

Baby Boomers (2%) favour premium policies that include PED and emergency evacuation  

 

Kapadia said there has been “a clear shift in mindset,” with insurance no longer seen as just a visa formality. “The 18.95% growth in Q1 is largely fuelled by increased awareness of rising incidents of travel disruptions, and a heightened focus on medical protection abroad,” he said.