Traveling is one of life’s greatest joys. Exploring new cultures, trying local cuisines, and creating lifelong memories are things we all look forward to. But, as exciting as traveling is, unexpected problems like medical emergencies, trip cancellations, or lost baggage can ruin an otherwise perfect trip.
This is where travel insurance comes in. It provides a financial safety net, ensuring that even if things go wrong, you don’t face huge losses. But with so many companies offering multiple types of plans, how do you pick the right one?
In this blog, we’ll cover everything you need to know about how to choose the right travel insurance—explained in simple, detailed steps with real examples and Indian price references.
Why Travel Insurance Is Important
Many Indian travelers often skip insurance to save a few hundred rupees, thinking nothing bad will happen. But real-life cases prove otherwise:
- Medical Emergencies Abroad
Healthcare in countries like the USA, UK, or Europe is extremely costly. A single hospital bill can easily cross ₹20–30 lakh. An emergency air ambulance evacuation can cost over ₹40 lakh. With travel insurance, most or all of this is covered. - Trip Cancellations
Imagine booking a Europe trip worth ₹2.5–3 lakh per person, but a sudden illness or family emergency forces you to cancel. Without insurance, all that money is gone. With insurance, most of it can be reimbursed. - Lost Luggage
Airlines misplace thousands of bags daily. Buying clothes and essentials abroad can cost ₹20,000–₹50,000 extra. Travel insurance compensates for this. - Travel Delays
A missed connection or weather delay can result in extra hotel costs. Insurance ensures you’re reimbursed for meals, stays, and rebookings.
Clearly, travel insurance isn’t just a formality—it’s a must-have.
Types of Travel Insurance
Different travelers have different needs. Here are the main types:
a) Single-Trip Insurance
- Covers one journey (departure to return).
- Ideal for occasional travelers.
- Example: A family vacation to Singapore for 10 days.
b) Multi-Trip (Annual) Insurance
- Covers multiple trips within a year.
- Best for frequent flyers, especially business travelers.
- Example: An executive traveling abroad monthly will save more with this plan.
c) Medical Travel Insurance
- Focuses mainly on healthcare abroad.
- Vital for senior citizens or those with health issues.
- Example: A 65-year-old traveling to the US for 2 months can avoid massive medical bills.
d) Student Travel Insurance
- Tailored for Indian students going abroad for education.
- Covers medical care, tuition fees (if studies are interrupted), sponsor protection, and emergency visits by family.
- Example: A student studying in Canada for 2 years.
e) Family Travel Insurance
- One plan covers the entire family.
- Cost-effective compared to buying separate policies.
- Example: Parents with two kids traveling to Europe.
f) Business Travel Insurance
- Covers work-related travel risks like document loss, meeting delays, or emergency employee replacement.
Key Factors to Consider Before Buying Travel Insurance
1. Destination
- The cost of healthcare abroad varies greatly.
- USA, Canada, and Europe require higher medical coverage (₹40–50 lakh minimum) because treatment costs are extremely high.
- Schengen countries mandate minimum €30,000 (₹27–28 lakh) coverage for visa approval.
2. Coverage Amount
- Always choose at least ₹20–25 lakh medical coverage for Asian countries.
- For USA/Europe trips, opt for ₹50 lakh to ₹1 crore coverage.
- Also check trip cancellation (₹2–5 lakh), baggage loss (₹50,000–₹1 lakh), and liability protection.
3. Duration of Travel
- A 7-day Thailand trip requires a short-term plan.
- A 6-month US stay needs long-stay coverage.
4. Pre-Existing Medical Conditions
- Insurers often exclude diseases like diabetes or hypertension.
- Some allow add-ons with extra premiums. Always declare honestly to avoid claim rejection.
5. Adventure Activities
- Standard policies don’t cover risky sports like skiing, trekking, scuba diving.
- If your trip includes these, buy adventure sports coverage.
6. Policy Exclusions
Most policies exclude:
- Alcohol/drug-related incidents
- Self-harm injuries
- Pregnancy complications
- War zones
- Always check exclusions before purchase.
7. 24×7 Assistance
- Ensure the insurer provides round-the-clock global helplines.
- Prefer policies with cashless hospitalization abroad.
Step-by-Step Guide to Choosing the Right Policy
1. Identify Your Travel Needs
- Solo, family, student, or business travel?
- Duration: short or long?
- Do you need extra adventure coverage?
2. Compare Policies Online
- Use comparison sites to check premiums, benefits, and claim settlement ratios.
3. Check Reputation of the Insurer
- Read customer reviews, see how quickly claims are settled.
4. Read the Fine Print
- Many travelers skip this step and regret it later. Understand inclusions, exclusions, and claim rules.
5. Buy Early
- Don’t wait till the last moment. Buying early ensures coverage for cancellations too.
Common Mistakes Indian Travelers Make
- Buying Only for Visa Approval: Some buy the cheapest plan just to get a Schengen or US visa. These may not cover emergencies well.
- Ignoring Adventure Add-Ons: If you’re planning skiing in Switzerland or scuba diving in Maldives, a basic plan won’t help.
- Depending on Credit Card Insurance: Many Indian cards offer travel insurance, but coverage is very limited (₹1–2 lakh). Not enough for real emergencies abroad.
- Not Disclosing Pre-Existing Illnesses: This can lead to rejection of claims later.
- Choosing Very Low Coverage: Saving a few hundred rupees now can cost lakhs later.
How Much Does Travel Insurance Cost in INR?
Travel insurance is usually 4–10% of the total trip cost.
- Example 1: A Europe trip worth ₹2.5 lakh may have insurance costs of ₹8,000–₹15,000.
- Example 2: A US trip worth ₹5 lakh may need ₹20,000–₹30,000 insurance.
- Example 3: A student studying in Canada for one year may pay around ₹35,000–₹60,000 for a comprehensive student policy.
The cost depends on:
- Age of traveler
- Destination country
- Duration of trip
- Coverage amount
- Add-ons (sports, pre-existing diseases, etc.)
Real-Life Scenarios for Indian Travelers
1. Medical Emergency in the US
- An Indian tourist had a heart attack in New York. Bills crossed ₹28 lakh. Luckily, his travel insurance covered all costs.
2. Lost Baggage in Europe
- A family’s bags were misplaced en route to Paris. Their insurance reimbursed ₹70,000 for essentials.
3. Trip Cancellation
- A businessman from Delhi had to cancel his ₹4 lakh Japan trip due to illness. His insurance reimbursed most of it.
Final Tips Before Buying
- Choose cashless hospitalization coverage.
- Ensure COVID-19 coverage is included.
- Keep both digital and hard copies of your policy handy.
- Inform family members about claim processes.
- If you travel often, an annual multi-trip plan saves money.
FAQs About Travel Insurance (For Indian Travelers)
Q1. Do I need travel insurance for domestic trips?
Yes. Even within India, unexpected events like accidents, medical emergencies, train/flight delays, baggage loss, or trip cancellations can occur. Domestic travel insurance offers affordable protection, with lower premiums compared to international policies, yet it still provides valuable financial security. It’s a smart way to safeguard your trip and reduce stress during unforeseen situations.
Q2. Can I buy travel insurance after booking tickets?
Yes. Travel insurance can be purchased anytime before your departure. However, it is best to buy it as soon as you book your tickets. This way, you’re also covered for cancellations and other pre-departure issues. Waiting until the last moment may limit coverage for certain risks like cancellation or medical conditions arising before travel.
Q3. Does travel insurance cover COVID-19?
Most policies now include COVID-19 coverage, such as hospitalization expenses, quarantine costs, and trip cancellations due to infection. However, coverage varies among insurers. It is important to carefully check whether COVID-19 protection is explicitly included in your chosen plan. Always read the policy terms before buying to avoid surprises during medical or travel emergencies.
Q4. How do I claim travel insurance abroad?
To claim insurance while abroad, contact the insurer’s 24×7 helpline immediately. Provide all required documents, such as medical bills, hospital discharge summaries, airline receipts, or police reports in case of theft. Claims must be submitted within the insurer’s given timeframe. Following the correct procedure ensures a smooth claim settlement and faster reimbursement of expenses.
Q5. Is travel insurance mandatory for all countries?
No, travel insurance is not mandatory everywhere. However, many countries—especially Schengen nations—require proof of insurance with minimum medical coverage of around ₹27–28 lakh for visa approval. Even if not compulsory, having insurance protects you against high medical bills abroad. Therefore, it’s strongly recommended regardless of your destination’s requirements, especially for costly healthcare countries.
Q6. Is travel insurance worth it for short trips like 5–7 days?
Yes. Emergencies can happen anytime, even during a short trip. Medical treatments abroad can cost thousands of rupees per day, and sudden cancellations or lost baggage may disrupt your plans. For just ₹1,000–₹3,000, you get peace of mind, knowing you’re financially protected against unexpected situations during your 5–7 day travel.
Q7. What if I lose my passport abroad?
Losing a passport abroad can be stressful, but most travel insurance policies cover this risk. They reimburse expenses for reissuing your passport and, in some cases, provide assistance in arranging emergency travel documents. Immediate reporting to local authorities and your embassy is necessary, along with submitting the insurer’s required documents for claim approval.
Q8. Can I extend travel insurance if my trip gets longer?
Yes, most insurers allow policy extensions online. You must request an extension before your current policy expires. Some insurers may require health declarations for longer extensions. Extending ensures continued coverage for medical emergencies, accidents, or travel disruptions. Always check your insurer’s terms and apply early to avoid gaps in your travel insurance protection.
Conclusion
Travel should be about enjoyment—not about worrying over accidents, lost luggage, or expensive hospital bills. The right travel insurance ensures you’re financially protected, no matter what happens.
When choosing a plan:
- Focus on coverage, not just price.
- Read the fine print carefully.
- Choose higher medical coverage for countries like the US/Europe.
- Buy early to include trip cancellation benefits.
With the right insurance, you can travel stress-free and focus on what truly matters—creating memories.
