Travel Insurance

Travelling after months of planning and savings is one of the best feelings. As more people take up travelling again, one thing they easily dismiss is insuring their trip. Travel insurance not only serves as a backup during financial difficulties, but it also offers you 24X7 global support if you need it. 

Sadly, there are many misconceptions about travel insurance that discourages people from buying them. We have covered a few of these travel insurance-related myths along with the actual facts!

• I don't have any Health Issues, so Travel Insurance is Useless!

  Your overseas travel insurance is not just to cover your health emergencies; it also takes care of other emergencies that will cost you considerably abroad! This includes losing your passport, missing your flight for a valid reason, getting mugged, accidentally damaging someone’s property and more.

  What’s more, even if you’re fit and fine, getting into an accident or a serious injury while travelling isn’t something you can control. In such cases, you’re better off with a travel insurance policy.

• Travel Insurance is Only Useful for Frequent Travellers!

  Frequent travellers can indeed get an annual trip insurance plan for themselves and get many benefits from it, but it works the same way for other travellers too.

  While frequent travellers save a lot of time and money on their annual trip insurance plans, those going for a single trip travel insurance can benefit a lot from their plans as they are not as expensive. These offer great benefits at a nominal cost.

• I Can Report Any Accident & File a Claim Once I'm Back in India.

  Even if you are on a short trip abroad, you shouldn't wait to return home in case something goes wrong. This includes getting into an accident, losing your wallet, missing bags, stolen passports etc.

  Most insurers need you to inform them about an incident within 24-48 hours. You also need to report these incidents to the police or other local authorities so that you can file a claim back home.

  What's more, many insurers won't entertain any claims after a certain period, mostly 30 days after you have returned to India.

• Old People Can't Buy Travel Insurance Policies!

  This is a baseless claim! Just because there’s a general age bracket for eligibility, senior travellers can’t be denied travel insurance plans! While standard plans are available for people aged anywhere between 6 months to 60 years, you will find many plans specially made for senior travellers. You can easily find these international travel insurance online. In fact, there are enough senior citizen travel insurance plans in India for anyone beyond that age and some insurers don’t even have an upper age limit!

• It's Just a 3-day Trip, I Don't Need to Waste Money on Trip Insurance!

  No matter how short or long your trip is, do you really want to risk it? That is the unpredictability of life- horrible weather, emergency hospitalisation or unfortunately losing your stuff are a few things that can happen to anyone at any time. In fact, on a shorter trip you’d be too stressed to deal with any medical emergencies alone, so why not let travel medical insurance take care of it?

• I Only Need Travel Insurance for Schengen Countries.

  While you can’t visit many European countries without proper Schengen travel insurance, other countries don’t make it mandatory. This doesn’t mean that you’re going to be fine without insurance; risks are always present no matter the country. It’s strongly advised that you get travel medical insurance every time you go abroad!

• Travel Insurance is Useless as They Always Reject Claims!

  Usually, claims are not accepted because they’re either a part of the exclusions or because there’s been incorrect information provided. Most travel insurance companies in India have a general set of exclusions stating all the scenarios where your claim won’t be covered.

  For example, travel insurance companies reject claims related to pre-existing conditions unless you’ve bought a policy that covers them.

What’s Not Covered by Travel Insurance Plans

Ignoring exclusions or situations that are not covered under a travel insurance plan is one of the biggest reasons for claim rejection. Keeping these travel insurance exclusions in mind before buying any plan will save you from misunderstandings and financial regrets later. 

It will also let you decide if you’re okay with the travel insurance quote for a plan you’re going for. Most travel insurance companies in India don’t cover claims due to the following reasons:

• Medical Exclusions

  • If you are travelling abroad against the medical advice of the doctor, then any medical expenses incurred will not be covered by the insurer.
  • Medical expenses for injuries or sickness caused while you were intoxicated or under the influence of alcohol shall not be covered under a travel insurance policy.
  • Treatment costs incurred due to sexually transmitted diseases and mental/nervous disorders are often not covered by many travel insurance companies in India.
  • Claims related to pregnancy or related complications are not covered.
  • Most travel insurance plans in India do not offer reimbursement for expenses due to alternative treatments such as Homoeopathy, Naturopathy, or Ayurveda.
  • Any claims related to cosmetic surgery or plastic surgery are usually not covered by the insurer.
  • Claims due to treatment for self-inflicted injuries, including attempts to suicide or suicide, are not covered by the insurer.
  • Many insurers in India don’t offer coverage for pre-existing issues or diseases under regular travel insurance plans unless an add-on cover has been purchased.

• Baggage Exclusions

  • Your international travel insurance policy will not cover baggage loss if your luggage has been shipped separately and/or is not accompanied by you.
  • Some policies don't cover cases beyond the specified geographic region.
  • Delay or failure in reporting the lost luggage to the relevant authorities may result in the rejection of your travel insurance claim.

• Journey Exclusions

  • Any claims arising because of dependency on intoxicants, such as alcohol or drugs will not be covered by the insurer.
  • Many insurers don’t cover claims arising out of the insured’s participation in adventure sports and other winter sports. For example, mountaineering, bike race, scuba diving, etc.
  • Loss due to involvement in illegal activities, theft, felony, etc. will not be covered.
  • Damage caused during dangerous or hazardous work will not be covered.

• Other Exclusions

  • The insurer will not cover any claims arising because of war-like circumstances, as well as a civil war in the country that you are visiting.
  • Claims arising due to terrorist attacks in your destination city or country may not always be covered by all insurers.
  • The insurer will not cover the expenses incurred during obtaining a duplicate or a new passport upon losing the original passport abroad if it was left unattended

Decoding Travel Insurance Terms

Here are some terms simplified for you to better understand travel insurance wordings:

• Sum Insured

  In case of any unfortunate event (for which you are covered), your insurer will give you a certain amount of money. This is also the maximum amount that you will be paid. You are entitled to this amount which is the maximum coverage under your travel insurance plan.

• Reimbursement

  If you’re in an emergency and have no time to wait for your insurer, then you can pay the expenses out of your pocket first and later get that money back (reimbursed) from your insurer. You will be compensated for all your costs as per the limits of your travel insurance policy.

• Single-Trip Insurance Plans

  If you’re not a frequent traveller, you’re more likely to have a single-trip insurance plan. This type of plan provides coverage for only one trip up to the determined date.

• Multi-Trip Insurance Plans

  These are made for people who travel frequently. Multi-trip insurance plans cover all the trips under the predetermined period (usually 1 year) and don’t need to be purchased every time.

• Family Travel Insurance Plans

  As the name says, family travel insurance are plans designed for families. This can be usually bought for the insured’s spouse, dependent children, and often older parents.

• Sub-limits

  These are additional limitations under any coverage offered by your travel insurance plan. Sub-limits apply to some insurable losses and exceeding them will require you to pay the difference. For example, hospital room rent, ambulance charges, etc. have a fixed limit, exceeding which you will need to pay the additional amount.

• Deductible

  In some cases, you are required to pay some of the initial expenses in case of an insured emergency. This is to be paid out of your pocket and will not be reimbursed. This amount is known as the deductible for that cover. The remaining expenses will be reimbursed by your insurer.

• Cashless Settlement

  Can be any organisation such as a commercial airline, dealing in the travel of people and cargo between different cities or countries.

• Common Carrier

  Can be any organisation such as a commercial airline, dealing in the travel of people and cargo between different cities or countries.

• Condition Precedent

  A predetermined condition based on which the insurer agrees to offer coverage to the insured.

• Equipment Failure

  An unexpected breakdown or malfunction of the common carrier’s equipment resulting in interruption or delay of the scheduled trip of the insured.

• Grace Period

  This feature is only available in multi-trip or group plans. An extended time period, right after the due date of the insurance premium. The insured person can still pay this due premium in this window to continue enjoying the protection of the travel insurance plan without any interruption.

• Hospitalisation

  When the insured person needs to be admitted into a hospital or a medical facility or for the mentioned minimum duration to receive their medical care. The duration must exceed 24 hours.

• Immediate Family Member

  Refers to the legal relatives of the policyholder. Includes the insured’s legal relations, including their parents, spouse’s parents, spouse, legal children, siblings, siblings-in-law, legal guardian, etc. who are residing in India.

• Insured Journey

  Refers to the duration of the valid policy term, for which it has been purchased. Most insurers calculate it as the time between the insured boards the common carrier for their scheduled journey and the moment they return their home, or on the day their plan expires, depending on whichever is sooner.

• Insured Person

  The policyholder is the individual who has purchased the travel insurance plan. Must be a permanent resident or citizen of India.

• Land/Sea Arrangements

  Includes different travel arrangements that have been paid for in advance, and made for the insured’s scheduled trip. These are planned by a travel agent or other tour operating organisation for which the travel insurance plan has been bought.

• Medical Expenses

  Means the expenses incurred by the insured person due to a sudden illness or injury. These must be required medical treatment based on the advice of a qualified doctor or medical practitioner.

• Medically Necessary

  Includes all tests, treatments, or hospitalisation necessary for the insured’s medical condition. The process involves medical care and management of the insured’s injury/illness based on the advice of a medical practitioner.

• Notification of Claim

  A necessary step on the part of the insured in case they need to raise a claim. The individual can inform their insurer about the claim to be raised.

• Pre-Existing Condition

  Refers to any injury, disease, or other related condition the insured has been diagnosed with or have had experienced symptoms of. If the insured has received medical treatment for the said condition, they should inform the insurance company.

• Room Rent

  In case of hospitalisation, the daily cost an individual must pay to occupy their hospital bed. This room rent is fixed by the hospital or medical facility charges.

• Serious Injury/Sickness

  A situation when an injury or sickness becomes a threat to the insured. It must be declared by a qualified physician stating that it is harmful to the insured’s life.

• Subrogation

  When the insurer takes legal measures against a third person or party on behalf of the insured. Usually in cases where the third party has caused loss or injury to the insured person.

• Travelling Companion

  Usually two other people who have booked travel tickets along with the policyholder for the journey.

Travel Insurance - FAQs

• Q. Why Do I Need Travel Insurance?

  Ans: While travelling brings joy to most, it also has its share of mishaps. For business or fun, international travel insurance plans protect you from these issues.

• Q. Can You Buy Travel Insurance After Starting Your Trip?

  Ans: No, you can’t. Especially if you’re travelling abroad then you need to buy international travel insurance before departing from India.

• Q. Does a Travel Insurance Policy Cover Pre-Existing Diseases?

  Ans: Most Indian travel insurance companies don’t cover pre-existing diseases like diabetes and high BP. However, you can always buy an optional to cover these PEDs in case you end up in an emergency while travelling abroad. However, you can buy travel insurance with COVID-19 cover and pre-existing medical conditions.

• Q. I am an OCI Cardholder (Overseas Citizen of India). Can I buy a travel policy?

  Ans: Yes. OCI Card holders can buy a travel policy, provided they have a valid Indian passport and intend to return to India.

• Q. Can I purchase travel insurance online for someone unrelated to me?

  Ans: No. You can’t buy travel insurance in India on behalf of someone unrelated to you. You can only purchase it for yourself and your parents, spouse, and children.

• Q. Can I file a travel insurance claim once I return to India?

  Ans: Technically, you can file a claim under your international insurance policy after returning to India, provided the claim is registered within 30 days of getting back to India or policy expiry, whichever is earlier. However, it is recommended to notify your insurer and file your claim as soon as you can.

• Q. What will happen if I forget to carry my travel policy along?

  Ans: Usually an overseas insurance policy can be easily issued online, so it is not easy to miss it while travelling. While it’s advisable to carry a soft copy while travelling, you can always get a copy of it through your customer ID and policy number. Just make sure to keep a soft copy with you at all times!

• Q. Can a travel insurance policy be withdrawn by the insurer at any point in time? If so, what are the options available?

  Ans: Yes. Travel insurance companies can withdraw a travel insurance plan if approved by the IRDAI. The traveller will receive a notice about the withdrawal at least 3 months before the expiry of the policy. In case of withdrawal, the insured will be able to continue with their ongoing policy until the scheduled date of its expiry.

• Q. Why should you buy international travel insurance online?

  Ans: Buying online overseas travel insurance online saves a lot of time and gets you the best travel insurance policy there is. Since there are no agents involved you can take your time understanding and comparing the available travel insurance plans without paying extra commissions.

• Q. Will travel insurance cover trip cancellation due to hospitalisation?

  Ans: Yes, you can file a claim for your cancelled trip if it was because of hospitalisation. However, it can only be accepted if you or an immediate family member were hospitalised for the minimum period according to your insurance plan.

• Q. I have both travel insurance and health insurance, so which one will be applicable during my trip?

  Ans: In case you're travelling in India and face emergency medical expenses, depending on the in-patient or out-patient coverage your health insurance plan will be applicable. However, if abroad, then only your travel medical insurance policy will be valid.

• Q. How much will overseas travel insurance online cost me?

  Ans: This will depend on the kind of overseas medical insurance policy you go for, as the cost will vary from country to country. Multiple factors like your age, trip duration and underlying health condition will determine the final premium. For a better idea, use a travel insurance premium calculator.