What is Travel Insurance?

Protecting your trip from the unexpected

Planning a trip whether it's a long-awaited holiday to Europe, a business trip to Singapore or a quick getaway to Goa, is an exciting time. But travel, as wonderful as it is, can sometimes throw up surprises you didn't budget for. A medical emergency abroad, a cancelled flight or a lost suitcase can quickly turn a dream trip into a stressful experience. That's where travel insurance comes in.

Having the right travel insurance in place gives you a financial safety net and the support you need when things don't go according to plan. It's a small cost compared to the peace of mind it offers. For some destinations, travel insurance is mandatory.

Understanding travel insurance

What does travel insurance cover?

Travel insurance policies vary between providers, but most plans in India typically cover:

• Medical expenses and emergency evacuation: If you fall ill or get injured abroad, your treatment costs can be enormous. A hospitalisation in the USA, for instance, can run into several lakhs of rupees. A good policy covers your medical bills and, if needed, the cost of bringing you home.

• Trip cancellations and delays: If you have to cancel your trip due to a sudden illness, a family emergency or other unforeseen circumstances, travel insurance can reimburse your non-refundable expenses. Most policies also cover flight delays and missed connections.

• Lost, stolen or delayed baggage: Policies typically provide compensation if your checked-in luggage is lost or delayed by the airline.

• Passport loss: Losing your passport abroad is stressful and expensive. Many Indian travel insurance plans cover the cost of obtaining a replacement.

• Personal liability: If you accidentally cause injury to someone or damage their property during your trip, your policy may cover the legal costs.

Always read your policy document carefully, as coverage limits and exclusions vary from insurer to insurer.

Is travel insurance mandatory for India passport holders?

For some destinations, yes, it is compulsory. If you are visiting any of the Schengen countries (which include most of Europe), you must have travel insurance with a minimum medical cover of €30,000 as part of your visa application. Without it, your visa will not be approved.

For countries like the USA or UK, insurance is not a visa requirement but is strongly advisable given the extremely high cost of medical care there. As a general rule, buying travel insurance is a smart move for any international trip.

How much does travel insurance cost?

For Indian travellers, short Asia trips start from ₹300–₹600, Europe trips cost ₹800–₹1,800, and USA/Canada trips cost ₹2,500–₹6,000 or more. The cost depends on your destination, the duration of your trip, your age and the level of cover you choose.

When should you buy travel insurance?

Buy it as soon as you book your trip. This is important because if something unexpected happens between booking and departure, say, a sudden illness forces you to cancel. You will only be covered if your policy was already in place. Insurers do not issue travel insurance after the trip has started, so timing matters.

What about pre-existing medical conditions?

It is very important to declare all pre-existing conditions such as diabetes, high blood pressure or heart disease when buying your policy. Standard travel insurance plans do not cover pre-existing diseases. Many plans cover these conditions only in the event of life-threatening emergencies, and even then, coverage is limited.

Some insurers do offer a pre-existing disease (PED) add-on cover, so if you have a known health condition, look out for this when comparing plans. Being upfront about your health when applying is not just important. Undisclosed conditions can invalidate your policy entirely.

Does travel insurance cover flight cancellations?

Travel insurance may cover flight cancellations in certain situations, such as when the airline cancels due to strikes or severe weather and your policy includes trip cancellation cover. However, exclusions often apply — particularly for events linked to conflict, government travel advisories or airspace closures. Always check the exclusions section of your policy wording carefully, and contact your insurer if you are unsure.

It is also worth knowing your rights as a passenger under Indian aviation regulations. According to the Ministry of Civil Aviation's Passenger Charter, if your flight is cancelled and you were not informed at least two weeks in advance, the airline must either offer you an alternate flight or a full refund, plus financial compensation ranging from ₹5,000 to ₹10,000 depending on the flight duration. Your travel insurance and your passenger rights work together. One does not replace the other.

Travel insurance for multiple destinations

If your trip involves more than one country, make sure your policy covers all destinations on your itinerary, not just the first one. Travel insurance plans in India include different region-specific options such as Asia-only, worldwide excluding USA and Canada, or full worldwide coverage. Choose the right one based on every country you plan to visit. Be sure to read the fine print, as oftentimes countries deemed to be 'high risk' are excluded from these regional or global policies.

If you travel frequently — say more than two international trips a year — an annual multi-trip plan may work out much more cost-effective than buying individual single-trip policies each time.

Travelling with family or as a senior citizen

Family floater travel insurance plans cover everyone travelling together under a single policy, making them convenient and often more economical. There are also dedicated senior citizen plans from several insurers, specifically designed for travellers above 60 years of age with health conditions that standard plans may not accommodate.

Does travel insurance cover adventure activities?

If your trip includes activities like trekking, scuba diving, skiing or bungee jumping, check whether your standard policy covers these. Standard plans may not cover injuries from adventure sports, so additional coverage may be necessary. Several insurers offer adventure sports add-ons for an extra premium.

You may only be covered in an adventure accident if you have the proper credentials. For example, scuba divers must be certified by an official agency, and motorbike accidents are typically only covered if you are licensed to drive a motorbike in that destination.

How to claim travel insurance

If something goes wrong during your trip, contact your insurer's 24/7 emergency helpline immediately. Do not wait until you return to India. For medical emergencies, ask for a cashless hospitalisation arrangement if your insurer has a tie-up with the hospital. Keep all bills, prescriptions, medical reports and receipts safely, as you will need these to process your claim.

As per IRDAI regulations, an insurer must settle your insurance claims within 30 to 45 days of receiving the last necessary document.

If you have a grievance with your insurer that is not being resolved, you can escalate your complaint to the IRDAI at www.irdai.gov.in or through the Bima Bharosa portal.

A quick checklist before you buy

Before finalising your travel insurance policy, ask yourself:

• Does it cover all the countries I am visiting?

• Is the medical cover sufficient for my destination (especially for Europe or the USA)?

• Have I declared all pre-existing conditions?

• Does it include trip cancellation, baggage loss and passport loss cover?

• If I am doing adventure activities, am I covered for those?

• Is the 24/7 emergency helpline easily reachable from abroad?

• Is the insurer registered with IRDAI?

Getting travel insurance is one of the smartest things you can do before stepping onto that plane. For a full list of IRDAI-registered insurance providers in India, visit www.irdai.gov.in. For passenger rights on Indian airlines, refer to the Ministry of Civil Aviation's Passenger Charter at www.airsewa.gov.in.