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What is Travel Insurance

TeamAckoMay 28, 2024

Travel insurance means insurance that covers financial losses that come with travelling internationally or domestically. It can be useful for travellers; it doesn’t matter whether they travel a lot or just once in a blue moon. People usually get travel insurance before their travel date and until they return to India to cover a range of possible uncertainties that they may face while they are on holiday or travelling for any other purpose.

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Contents

Do I Need Travel Insurance?
Types Of Travel Insurance
The Bottom Line
Frequently Asked Questions

Do I Need Travel Insurance?

Well, it really depends on what you're willing to risk. We understand that it can be a bit of a puzzle when deciding on travel insurance, so if that’s a question that you're struggling with, let’s understand how travel insurance works so you can make a call and see if it’s the right move for you or not.

How Does Travel Insurance Work?

It usually starts on the day of travel and lasts until the traveller returns back to India. It makes sure that you are fully covered in case of an emergency in another country.

Insurance for travel mainly includes coverage for: medical costs, trip cancellation or interruption, lost luggage and accidental death.

In fact, depending on the plan you select, it will be decided what potential damages and losses will be covered.

Let’s understand what coverage options are available as well as what’s not.

What Does Travel Insurance Cover?

Travel insurance coverage

Travel insurance coverage can be divided into a broad array of potential financial losses. Here are the key highlights:

Medical Emergency

Medical emergencies include everything from OPD treatment and hospitalisation expenses to accidental death and even the repatriation of mortal remains back to their home country.

Baggage Cover

Travel insurance also covers delayed baggage, lost baggage, and damaged or partially damaged baggage. What these terms really mean will depend on your insurance company and the plan you choose.

Flight Cover

When flying abroad, delayed, rescheduled, cancelled, and missed flights are usually covered. The maximum amount you can receive for the claim depends on your insurance provider and whether your situation meets certain criteria.

Add-ons

Extras that travel agencies offer include injuries from adventure sports, bounced bookings, and losing personal money. You can choose what risks you are willing to take and get a package that fits your travel plans.

What Does Travel Insurance Might Not Cover?

Knowing what coverage is not available is just as important as knowing what’s covered.

Here are the exclusions that travel insurance companies usually have:

If you have a preexisting condition.
If you are travelling after your doctor told you not to.
If only for treatment purposes.
The issue is related to pregnancy.
If you happen to break the law or get involved in serious illegal activities.
If it’s self-harm.
If the insurance is purchased after your departure.
If the starting and final destination are not India.

Types Of Travel Insurance

There are seven different kinds of travel insurance plans you can buy in India to protect your upcoming trip, whether it is within India or another country. Remember that not all policies will work for everyone, so pick a policy based on how you plan to travel.

The following table lists the various types of travel insurance and what they cover:

Insurance Type	Coverage
International Travel	- Medical emergencies - Trip cancellations - Lost luggage - And more
Domestic Travel	- Medical emergencies - Trip cancellations - Personal liabilities - And more
Single Trip	- Coverage for the duration of one trip - Protection from medical emergencies, cancelled flights, lost bags, and more
Multi Trip	- Continuous coverage for frequent travellers - No need to purchase new insurance for each trip - Consistent level of coverage
Family	- Comprehensive coverage for all family members travelling together - Medical expenses, liability protection, lost luggage, and more
Group	- Tailored for group or business trips - Coverage varies among providers
Business	- Protection for work-related uncertainties during business trips - Coverage for common travel-related mishaps affecting work commitments
Student	- Coverage for students studying abroad - Additional coverage for academic pursuits, including bail bonds
Senior Citizen	- Specialized coverage addressing age-related concerns - Similar benefits to overseas travel insurance, but with higher quotes for senior citizens
Schengen	- Mandatory for Schengen visa applicants - Required for travel to the 27 Schengen countries - Benefits similar to overseas travel insurance, offering comprehensive coverage

How Much Does Travel Insurance Cost?

The cost of travel insurance is typically a percentage of the overall cost of the trip. It can vary depending on several factors, including the person's age, the trip duration, and the coverage selected. For example, a travel insurance policy might cost around 3% to 5% of the trip’s total cost.

Let’s understand this with the help of an example:

For a 30-year-old planning a 2 lakhs trip, the insurance might cost anywhere from ₹6,000 to ₹10,000. However, for older travellers, such as those over 70, the cost could increase, potentially reaching up to 12% of the trip cost due to the increased risk and potential for claims.

It's also worth noting that the cost can be influenced by the policy options chosen. For instance, adding coverage for "baggage loss" can increase the policy cost above the base premium price. Therefore, the final price is determined not only by the base price but also by the traveller's age and the coverage selected.

How To Buy The Best Travel Insurance?

When it comes to purchasing the best travel insurance, you should think about a few important things, such as the coverage options, customer support, and how affordable it is. One great way might be to look at different policies side by side. You can look at their fine print and check if the coverage you want is available, then make your own plan and get their final quotes. If that’s justifiable, you can go for that option.

How Can I Get Cheap Travel Insurance?

To get a cheap travel insurance, you need to do a little bit of research, understand what you truly need, and know a few secret tips. Here are some steps to help you find an affordable travel insurance plan:

1. Start by comparing different insurance providers. You can use comparison websites, which will allow you to see a range of options side by side and make an informed decision.

2. Customise your policy as per your travel needs. You don’t need to pay for unnecessary coverage.

3. If you're not a frequent traveller, consider buying single-trip policies. This can often be more cost-effective.

4. Some credit cards offer travel insurance as a perk. Check if your credit card provides sufficient coverage or not.

5. Look for group travel insurance policies. They can sometimes offer lower costs than individual policies.

The Bottom Line

We hope that after reading this, you have understood whether buying travel insurance is worth it or not. It doesn’t matter if it’s a yes or no, because ultimately, the decision lies with you. What truly matters is that you are aware of the risks involved and can make an informed decision. Most people buy motor car insurance to safeguard their material desires but forget to secure their travel, which holds a lot of memories we create. But if there are problems or unwanted risks in the travel, the same experience would turn into a nightmare.

Remember, your peace of mind should be a top priority, and travel insurance can help you achieve that.

Now, let us conclude and wish you a safe and secure journey ahead!

Frequently Asked Questions

Here are some of the answers that travellers usually get in their mind while deciding on buying travel insurance. Let’s see if it answers your’s too:

How many types of travel insurance are there?

There are many types of travel insurance available, but seven different types are most common: international, domestic, group, single-trip, business trip, senior citizen, student, and Schengen travel insurance.

Is travel insurance mandatory?

Travel insurance is not mandatory. However, some countries require travel insurance to enter, like the Schengen European areas.

Why is travel insurance important?

Travel Insurance is important because it pays for the uncertain risks that can come at any time without notice while you are in a different country. It covers plenty of risks related to travel and remains until you are back in India.