Jakarta - Insurance companies in Indonesia are seeing more local companies buy annual travel insurance policies for their travellers instead of single-trip plans.

The demand is not so much fuelled by safety and security concerns but by an increasing number of domestic business trips. This has made it more cost effective for companies to buy long-term instead of short-term plans for their travellers.

Bayu Buana vice-president director, Mr Pranowo Gumulia, said: “In the past, it was taboo to talk about getting compensation for loss or death as people believe life and death is in the hands of God, a fate. This was why people did not care about insurance. However, this has changed. More people now view this as lessening the burden of family members, if anything should happen.”

Mr Pranowo said there was greater awareness of buying an insurance policy not just in Indonesia but the world. “For Bayu Buana, all international ticket sales include a life insurance policy (for the duration of travel) at no extra cost to traveller, and an option for domestic tickets,” he said. AIU Indonesia Insurance, a member of American International Group-AIG travel manager, Mr Mark Anthony, said: “Companies in Indo-nesia are getting more aware of the importance of travel insurance since the 9/11 tragedy and the bombings in Bali and Jakarta in the last two years.

“Our sales are increasing every year, but the way I see it, this is because business travel traffic – both within the country and overseas – is increasing. Sales do not go up only when travel warnings bomb and terror threats occur, like the recent bombing in Poso (Central Sulawesi at the end of May).

“Companies used to buy single-trip plans for their staff because it was too expensive to buy one which was valid for one year. But now that people are making trips more frequently, it is more economical to buy the annual plan.” He said the company had launched AIG Corporate Assist Business Travel Insurance, which covers domestic and international travel, last year and within six months, its travel insurance sales increased by 30 per cent.

Travel management company, Radius Pantravel sales and marketing manager, Mr Fahri Kurniawan, said: “Many companies have increased their T&E budgets this year as they see more need to make business trips.”

SYNERGI Travel director, corporate division, Ms Jina Seung, agreed: “Business prospects are improving in the country and corporates are taking more trips domestically.”