Under the partnership, 'Reliance Inland Travel Care Policy' will be offered to passengers of AirAsia India.
The policy will cover "trip cancellation and interruption, trip delay, missed flight connection, damage or total loss of checked-in baggage and hospitalisation due to," the airline said in a release today.
It will be priced at a premium of Rs 149 for 30 days, Rs 279 for 60 days and Rs 399 for 90 days.
"Under this tie-up, we have made comprehensive travel insurance provisions for AirAsia flyers that will enable travellers to be adequately insured in case of any travel-related eventuality," Reliance General Insurance CEO Rakesh Jain said.
Besides, AirAsia India has re-launched its Red Carpet service across New Delhi, Jaipur, Guwahati, Vizag, Kochi, Bengaluru, Pune and Hyderabad.
The service, which can be pre-booked, will provide the passenger access to with food, beverages and wi-fi as well as a dedicated counter check-in, among others.
AirAsia India CEO Amar Abrol said the carrier has a "pay for what they use" model that allows it to keep costs low and pass on the benefit in the form of low fares.
AirAsia India flies to 11 destinations.