International Travel Insurance: Real Claims Trends

Travel Insurance in Numbers: What Were the Most Common Claims Last Year?

When you step outside the safety of your home country, the risks you face are rarely what you can anticipate. While many people buy travel insurance to cover rare or catastrophic events such as medical evacuation or hospitalisation, historical data from popular travel insurance companies in India paints a different picture. It is everyday logistical issues and minor health disruptions that drain your savings and affect your trip the most quickly.

Key Insights from 2025 Travel Insurance Claim Data

Let's understand what last year's data tells us about travel risks, and what the most common scenarios are that lead travel insurance policies to safeguard your trip.

1. Flight Disruptions are a Global Norm

   Think your flight will leave on time? Think again. Transit disruptions are among the most common reasons for travel insurance claims. Nearly 49.65% of all travel insurance claims are due to transit disruptions.* These include carrier delays, flight cancellations and missed connections. Flight & common carrier delays make up for 22.75%, followed closely by flight & trip cancellations at 21.44%.*

2. Don't Underestimate OPD Costs

   Most travellers think that medical emergencies abroad are usually about dramatic ICU hospitalisations or evacuations. But the data tells a completely different story. Outpatient medical treatment (OPD) accounts for 9.23%* of global claims, according to the data. Minor, unexpected illnesses that require a walk-in or clinic visits easily touch a thousand dollars or euros, adding up to total expenses. Compared to OPD, inpatient hospitalisation (IPD) accounts for less than 2%* overall claims.

   This means that Indians file 6 times as many OPD claims as major hospital admissions. While inpatient stay costs more, the higher chances of catching a stomach infection or a viral flu make OPD a primary financial burden for uninsured travellers.

3. Transit Hubs See Highest Baggage Claims

   International airports, especially the popular transit hubs, account for over 14%* travel claims overall. Out of these, 10.45%* of the registered claims are for delay of checked-in baggage, whereas loss of checked-in baggage accounts for 3.62%* claims. This means that nearly 3 out of 4 baggage-related insurance claims are filed purely because a suitcase was delayed at a connecting terminal. This delay was long enough for the stranded travellers to buy emergency clothes and toiletries under trip insurance coverage.

*Statistical insights and claims distributions are derived from Policybazaar's internal analysis of historical claims processed by India's leading travel insurance companies.

Breakdown of Type of Travel Insurance Claims

^All statistical figures, percentages, and claim rankings featured on this page are based on Policybazaar's internal claims data, aggregated across top international travel insurance providers in India.

Top Situations to Claim for International Travel Insurance

Based on the claims settled by various insurers, here are the most frequent scenarios where you should confidently file a claim under your policy:

Flight Disruption & Carrier Delays

With flight delays accounting for over 22% of overall claims, transit disruption is the most likely problem faced by many travellers:

• When to ClaimIf your airline/scheduled common carrier is delayed beyond the time limit mentioned in your policy. This is usually 4 to 12 hours.
• What to ExpectYou will get reimbursements for necessary expenditures like meals, refreshments and medicines while stranded at the terminal.

Overseas Health Emergencies (Inpatient & Outpatient)

Getting medical care outside India can be shocking for many, especially in countries like the USA and Canada, where healthcare is 10 times more expensive. Overall, medical claims make up over 21% of all claim payouts in the travel insurance industry.

• When to ClaimIf you need medical attention for a sudden injury or acute sickness while you're abroad.
• What to ExpectMost plans cover IPD but also offer outpatient treatment, which is most common. If you need a physician and get a prescription without being admitted, you can be covered for those expenses after you pay for the deductible. While IPD can be covered by cashless hospitalisation, you may need to pay for OPD first and claim reimbursement later.

Baggage Mishaps & Passport Loss

Popular transit hubs handle millions of pieces of luggage every day, so errors are inevitable. If your passport is lost or damaged abroad, you will be covered too.

• When to ClaimIf your checked baggage does not appear on the arrival conveyor belt/ carousel within the specified time, such as 6 hours or more. Or your baggage is damaged or permanently lost by the carrier. This also applies if your passport or international driving license is lost or stolen.
• What to ExpectYou can get a fixed sum or allowance to buy emergency items such as clothes, toiletries and medicines in case of baggage delay. You can get financially compensated depending on the weight or itemised value of lost belongings.

Mid-trip Interruptions

Well begun is half done, but things can still go wrong after a smooth-sailing trip. If your trip is cut short, you can claim under trip interruption coverage under travel insurance.

• When to ClaimIn case of a natural disaster, a sudden family emergency, severe weather incident or medical crisis that requires you to change your travel plans.
• What to ExpectYou can get coverage for unused non-refundable costs, such as hotel bookings and airline cancellation penalties, in case you call off the trip. You can also get assistance with unexpected hotel costs if you are forced to extend your stay because of an emergency.

Reasons for Travel Insurance Claim Rejection

Even the most comprehensive travel insurance policy comes with limitations. To avoid claim rejection, be mindful of general exclusions. These are a few situations mentioned in policy wordings that won't be covered by Indian travel insurers:

1. Intoxication & Self-Injury

   Any medical or liability claim directly or indirectly arising due to consumption of alcohol, narcotics, or intentional self-harm is not covered.

2. Pre-Existing Diseases (PED) Without Add-ons

   Standard policies don't cover routine check-ups or predictable complications of illnesses you already had before buying the policy. Unless you explicitly bought a specialised Pre-Existing Disease cover add-on.

3. Adventure Sports

   Injuries sustained during hazardous activities (such as skydiving, paragliding, skiing, or scuba diving) are excluded unless you buy an adventure sports cover rider by paying an extra premium.

4. Travelling Against Medical Advice

   If your doctor/certified physician explicitly declared you unfit to fly or travel due to a medical condition, any subsequent health claims abroad will be rejected.

5. Criminal/Illegal Acts

   Any loss, injury, or liability incurred while actively participating in an illegal act, assault, or local law violation will void your coverage entirely.