Indian travel to Schengen countries sees a 19% uptick; what is a Schengen visa?

Multiple reports in recent months have revealed that travel from India to Europe experienced notable growth in the first quarter of 2025. And now a new report shows that Schengen destinations showing an impressive 18.95 per cent year-on-year increase, based on exclusive data from policy platform Policybazaar. This significant rise reflects evolving travel trends, increasing disposable incomes, and greater awareness of potential travel risks, leading more travelers to prioritize comprehensive insurance coverage.

What are Schengen countries and what are the visa rules?

Germany, France, and Switzerland stood out as the most visited Schengen countries, representing 20 per cent, 17.57 per cent, and 10.67 per cent of visits, respectively. Germany's appeal for both business and leisure travellers is driving demand for business travel insurance and coverage for work-related emergencies. Meanwhile, Switzerland and the Netherlands are also gaining popularity, particularly among those interested in adventure activities, resulting in a rise in insurance policies featuring specialized add-ons.

Visa-related issues are influencing insurance choices among travellers. In 2023, over 15 per cent of Schengen visa applications from India were denied, leading to an estimated loss of EUR 12.1 million in non-refundable fees. Consequently, 20 per cent of travelers are now opting to include visa fee refund riders in their insurance policies.

There is a noticeable trend toward higher coverage amounts, with 62 per cent of Indian travellers selecting policies worth $250,000 or more. Senior citizens are particularly driving the demand for plans that exceed $500,000, which cover pre-existing conditions and emergency hospitalizations.

What are Schengen countries?

The Schengen Area is a unique and significant aspect of European integration, representing a group of countries that have eliminated passport control at their mutual borders. They were established to facilitate free movement and enhance cooperation among member states, the Schengen Area allows individuals to travel across borders without the need for frequent checks or visa requirements for short stays. Currently, the Schengen Area consists of 27 countries, such as Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary etc

The origins of the Schengen Agreement can be traced back to 1985, when five of the then ten member states of the European Economic Community (EEC) signed the Schengen Agreement in the village of Schengen, Luxembourg. This initial agreement aimed to gradually abolish border controls between the participating countries. The Schengen Convention followed in 1990 and established the rules and policies that govern the Schengen Area today.

The founding members of the Schengen Area included Belgium, France, Germany, Luxembourg, the Netherlands, and Portugal. Since then, countries such as Spain, Italy, Austria, Greece, and several others have joined. Notably, while all Schengen countries are committed to maintaining public safety and security, they also share policies regarding external border management. This means that travelers entering the Schengen Area from outside must comply with the same visa requirements and regulations set by the Schengen visa policy.

Indians who want to apply for the Schengen Visa, have to submit proof of of financial health and intent to return, busides some other key paperwork. From February 2024, the European Union's updated regulations permit frequent travelers to obtain visas with longer validity periods, ranging from one to five years. However, the duration of these visas is linked to the validity of the applicant's passport. This means that even if you qualify for a longer visa, such as three or five years, you will only be granted a shorter visa if your passport is valid for only one year.