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Tiket.com offers flight insurance

Happy passenger: The insurance covers flight and baggage delay, as well as injury sustained during flights. Delays of flight or baggage handling will be compensated Rp 500,000 for every 4-hours of setback, while injuries will be covered up to Rp 300,000,000 for international flights and Rp 200,000,000 for domestic flights.

Online travel agent Tiket.com has collaborated with Allianz Utama Indonesia insurance company to offer flight insurance services for their customers.

“We see a rising trend in travel insurance -- due to delays happening at busy airports,” said managing director of Tiket.com Gaery Undarsa during the launching of the service in Jakarta.

By paying relatively affordable fees upon booking -- Rp 11,900 (US$0.89) for domestic flights and Rp 21,900 for international flights -- customers are entitled to a travel protection service covered by Allianz Utama Indonesia.

The insurance covers flight and baggage delay, as well as injury sustained during flights. Delays of flight or baggage handling will be compensated Rp 500,000 for every 4-hours of setback, while injuries will be covered up to Rp 300,000,000 for international flights and Rp 200,000,000 for domestic flights.

Prior to its launching on June 25, Tiket.com ran weeks of trial periods where they put the service online without any notification or promotion, and the results were positive.

“During the trial period, we recorded hundreds of purchases. It’s a good turn up, considering we haven’t put any effort in promoting the service,” said Gaery.

Director of Allianz Utama Indonesia Inkes Lukman mentioned on the same occasion that travel insurance had actually been a part of the services offered by Allianz for a while. The agreement they made with Tiket.com was done in order to reach a wider scope of customers.

The flight insurance at Tiket.com is a more specific coverage service compared to the whole protection service offered by conventional travel insurance. However, Tiket.com and Allianz have followed the proven formula conducted by major airlines through their online-booking service by providing their customers with a simplified registration process and a cheaper price for their travel protection.

Ferdi Adhi, assistant manager of Allianz Indonesia’s e-commerce travel business development, explained that conventional travel insurance still had plenty of room to grow.

“Travel insurance is not yet considered a necessity for travelers in Indonesia. Most avoid it due to the extra cost required to sign up for it,” he said to The Jakarta Post Travel on the phone.

However, he feels optimistic as he notes how travelers are becoming more educated on the matter of insurance.

Online flight insurance services are one of the improvements made in the business of travel protection. Tiket.com and Allianz Utama Indonesia are not closing the doors on the possibility of a similarly simplified system for the registration of whole protection travel insurance in the future, should the newly introduced service prove to be successful.