What is travel insurance?

Check travel insurance types and its importance. Know what travel insurance covers.
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3 mins
05-August-2023

Travel insurance, like any other insurance policy, is an essential insurance policy that one should have. While you are planning your upcoming trip – where you will go, stay, and what to do, it is necessary to secure your trip as well. Travel insurance is an essential aspect of any journey, domestic, or international, but often gets overlooked.

Read to know what travel insurance is, what it covers, why it is crucial, and some things to consider when choosing a travel insurance policy.

What is travel insurance?

Travel insurance is a type of insurance that covers unexpected losses you may sustain while travelling. It covers medical treatment costs, trip cancellations, flight delays, or cancellations. Travel insurance also covers lost baggage or passport, and other unforeseen events that may occur during your trip.

The primary purpose of travel insurance is to secure you against unforeseen circumstances that could happen while you are away from home. It aims to provide you with financial security and peace of mind whenever you travel, enabling you to enjoy your journey without worrying about unexpected events.

Types of travel insurance

There are several types of travel insurance policies available, and they all offer different levels of coverage. It is essential to choose the right type of travel insurance that best suits your requirements. These are the most common types of travel insurance policies:

International travel insurance: This is the most comprehensive travel insurance policy that covers you when travelling abroad. It typically includes medical expenses, trip cancellation and interruption, emergency medical evacuation, loss or theft of personal belongings, and other common travel-related risks.

Domestic travel insurance: This type of policy only covers you when travelling within your home country. The coverage only includes specific losses such as flight cancellations, flight delays, trip interruptions, and medical emergencies.

Schengen travel insurance: If you are planning to travel to European Union countries that border each other, known as the Schengen countries, you need Schengen travel insurance. This insurance policy offers necessary medical coverage for expenses, including medical treatment and hospitalisation, repatriation, emergency dental care and more.

What does travel insurance cover?

Travel insurance policies provide coverage for a wide range of eventualities and risks that you may face while travelling. Here are some of the most common types of coverage that you can expect from travel insurance:

Medical expenses: The most significant part of any travel insurance policy is that it covers expenses for illnesses and injuries that may occur during your trip. It covers doctor's fees, hospitalisation, surgery, and other medical-related expenses.

Trip cancellation and interruption: If unforeseen events force you to cancel or interrupt your trip, a travel insurance policy can help cover the costs. It includes non-refundable trip deposits, airfare, and other expenses related to your trip.

Emergency medical evacuation: If you require emergency medical evacuation while travelling, a travel insurance policy will help cover the expenses incurred. It covers transportation cost to the nearest medical facility, repatriation, and more.

Lost, stolen, or damaged luggage: A travel insurance policy will cover the expenses of lost, stolen, or damaged luggage during your journey. It includes the cost of replacing your personal belongings, baggage delay, and passport or other travel documents.

Also read: Travel insurance

Importance of travel insurance

Travel insurance is essential for any trip, whether domestic or international. Here are some reasons why travel insurance is crucial:

Financial security: Travel insurance provides a financial safety net that covers the expenses incurred due to unexpected events that may happen during your trip.

Peace of mind: Knowing that you have a financial backup with travel insurance gives you peace of mind while travelling. It means that you will not have to worry about the financial burden of dealing with an emergency.

Travel assistance services: Most travel insurance policies come with 24-hour customer support and assistance services that can help you in case of an emergency.

Things to consider when choosing a travel insurance policy

When choosing a travel insurance policy, it is important to consider several factors to ensure that you get the coverage you need. Here are some things to keep in mind when selecting a travel insurance policy:

Scope of coverage: Choose a travel insurance policy that provides adequate coverage based on your requirements. Ensure that it covers common risks such as medical expenses, flight cancellations, lost luggage, and trip interruptions.

Policy terms and conditions: Make sure you read and understand the policy's terms and conditions before purchasing. Check for exclusions, deductibles, pre-existing medical conditions, and other important details.

Premium: Compare different travel insurance policies to find the best value for money. Some policies may be more expensive than others, but they may also provide better coverage.

Travel insurance offers various benefits that help you financially when travelling domestically or internationally. It is important to understand the policy's terms and conditions, coverage, and any waiting periods before purchasing. The cost of travel insurance varies based on several factors, including the type of policy, duration of your trip, destination, age, and more. Whether you are travelling domestically or internationally, it is always a good idea to invest in travel insurance for peace of mind when travelling.

Frequently asked questions

Is there a waiting period before I can claim for travel insurance?

Yes, most travel insurance policies come with a waiting period. It means that you cannot claim for any loss or damage that occurs within a specific number of days from the start of your policy. Waiting periods can vary based on the type of policy you have purchased. It is essential to check the policy's terms and conditions to know the waiting period and ensure that you file your claims accordingly.

What benefits do I get in travel insurance?

Travel insurance offers various benefits, such as emergency medical expenses coverage, trip cancellation and interruption, lost or delayed luggage, flight delays or cancellations. It also covers accidental death, repatriation, emergency evacuation, and more. The coverage varies depending on the type of policy you purchase and the insurance provider. Check the policy's benefits when buying the policy to ensure that you get coverage as per your needs.

Do I need domestic travel insurance to travel in India?

Domestic travel insurance is not mandatory when travelling within India. However, it is always a good idea to have travel insurance, whether travelling domestically or internationally. Domestic travel insurance helps protect you financially in case of unexpected cancellations, medical emergencies, or other unforeseen events that could disrupt your trip. It is a small cost to pay for peace of mind when travelling.

What is the cost of international travel insurance?

The international travel insurance premium varies depending on several factors, including the policy type, the duration of your trip, your destination, your age, and other factors. A comprehensive policy can cost anywhere from a few hundred to a few thousand rupees. It is important to compare different policies from different providers to get the best value for money.

What is the cost of domestic travel insurance in India?

The cost of domestic travel insurance in India is relatively low compared to international travel insurance. The premium for domestic travel insurance depends on the policy's coverage.

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