IndiGo Aftermath: Travel Assurance Adoption Records 100 Per Cent Jump Following December’s Aviation Meltdown

Mumbai, Feb 07: The Indian aviation sector is witnessing a seismic shift in consumer behaviour following the great IndiGo meltdown of December 2025. What began as an operational nightmare for IndiGo has transformed into a gold rush for travel assurance products, with industry leaders reporting a staggering 100% surge in the adoption of “peace-of-mind” add-ons over the last two months.

Operational collapse during peak season

IndiGo, which commands over 60% of the domestic market, suffered a systemic collapse in December 2025. The crisis was triggered by a poorly planned transition to the DGCA’s revised Flight Duty Time Limitations (FDTL).

Designed to prevent pilot fatigue, the new rules increased mandatory rest periods, but IndiGo’s lean crew buffers couldn’t absorb the change during the peak winter wedding and holiday season.

Massive passenger impact and flight cancellations

The fallout was historic, with 16 lakh passengers directly impacted by cancellations and delays stemming from IndiGo’s service failures. The airline reported cancellations of about 5,689 flights in December, resulting in its market share plummeting to 59.6% for the month.

Travel assurance emerges as a new essential

However, this unprecedented crisis led to the rise of travel assurance as a new essential. Online travel agencies and insurers reveal that Indian flyers are no longer willing to gamble on standard tickets and are increasingly opting for travel assurance.

Market players believe that experiences around cancellations, baggage delays and prolonged disruptions have made travellers more conscious of safeguarding their travel plans.

Assurance products see sharp rise at booking stage

Travel assurance products such as zero-cancellation cover, baggage loss protection, trip disruption assistance and alternate arrangement guarantees are increasingly being considered at the booking stage. According to these industry players, demand for travel assurance products, once seen as an unnecessary luxury, has doubled between December and February.

2026 likely to see continued growth

Industry conversations suggest that 2026 could mark a notable rise in the adoption of travel assurance products due to the recent push fuelled by the IndiGo crisis.

According to Gurugram-based travel assistance and assurance company Across Assist, the offtake for travel assurance has gone up from 2.5% to 6% over the last two months, recording a jump of 140%.

“This is largely due to increasing traveller anxiety around operational instability, mostly due to the recent crisis that hit the aviation ecosystem. Also, the fact that assurance products are now seamlessly embedded into the booking journey makes it easier for travellers to opt in. We also sense a behavioural change where assurance is moving from a ‘nice-to-have’ to a ‘must-have’ consideration during trip planning,” said Neeraj Verma, CEO of Across Assist.

OTAs report surge in assurance uptake

Online travel agency Cleartrip also claimed a 100% jump in travellers opting for its travel assurance products. “Following the recent aviation disruption, we’ve observed a 100% year-on-year increase in travellers opting for travel assurance products such as Cleartrip Flex, Cleartrip Flexmax and third-party insurance during air bookings. This surge indicates a clear shift in customer behaviour, with more travellers actively choosing to safeguard their plans against last-minute disruptions,” said Cleartrip Chief Growth and Business Officer Manjari Singhal.

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Assurance era set to stay despite stabilisation

While IndiGo has stabilised its operations by hiring more crew and refining its rosters, the assurance era appears to be here to stay. Travel market experts believe that for the Indian flyer, the ticket price is no longer just about the seat, but about the guarantee of reaching the destination — or at least being compensated when the system fails.

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