Travel Insurance: What Indian Travellers Get Wrong
Most Indians skip travel insurance or buy the cheapest policy. Here is why that is a costly mistake — and how to choose the right cover.
Here is a scenario that plays out every week: an Indian tourist in Europe slips on a wet floor, breaks a wrist, and the hospital bill comes to EUR 8,000 (approximately Rs 7 lakh). Without travel insurance, that is an out-of-pocket expense that ruins the entire trip financially. With a Rs 800 insurance policy purchased before departure, it is fully covered. Travel insurance is the most undervalued aspect of trip planning for Indian travellers. Most either skip it entirely (it will not happen to me) or buy the cheapest policy without reading what is actually covered. This guide explains what travel insurance actually covers, what it does not, and how to choose the right policy.
What Travel Insurance Actually Covers
A good travel insurance policy covers five key areas. Medical expenses: hospital treatment, doctor visits, emergency dental care, and medical evacuation. Trip cancellation: reimbursement if you cancel due to illness, family emergency, or natural disaster. Lost luggage: compensation for bags lost or delayed by airlines. Flight delays: accommodation and meal expenses during extended delays. Personal liability: coverage if you accidentally damage property or injure someone. The most important coverage is medical — a single hospital visit abroad can cost Rs 50,000-5,00,000 depending on the country and treatment required.
- Medical expenses: Hospitalisation, doctor visits, evacuation (most critical)
- Trip cancellation: Refund for cancellations due to covered reasons
- Lost/delayed baggage: Compensation for airline-lost luggage
- Flight delays: Hotel and meals during extended delays (6+ hours)
The Three Mistakes Indians Make
Mistake 1: Buying the cheapest policy without reading coverage limits. A Rs 300 policy with Rs 1 lakh medical coverage is useless in Europe where a simple ER visit costs Rs 3-5 lakh. Mistake 2: Not declaring pre-existing conditions. If you have diabetes or heart disease and do not declare it, the insurer will reject your claim. Always declare — the premium increase is small (10-20%) and the coverage is real. Mistake 3: Assuming your domestic health insurance works abroad. Most Indian health insurance policies do not cover international medical expenses. You need a separate travel insurance policy for every international trip.
- Cheap policies often have Rs 1-2 lakh medical limits — useless abroad
- Non-disclosure of pre-existing conditions = claim rejection guaranteed
- Indian health insurance typically does NOT cover international treatment
- Always read: Sub-limits, co-pay percentages, and exclusions in the fine print
How to Choose the Right Policy
For any international trip, ensure your policy has a minimum medical coverage of Rs 25 lakh (EUR 30,000 for Schengen countries — this is mandatory, not optional). Choose a policy that covers pre-existing conditions if applicable. Check the cashless hospital network — can the insurer pay the hospital directly, or do you pay first and claim later? Look for 24/7 assistance helpline in your language. Compare policies on aggregator sites like PolicyBazaar or Coverfox. And read the exclusions carefully — adventure sports, alcohol-related incidents, and pandemic-related cancellations are commonly excluded.
- Minimum medical cover: Rs 25 lakh (EUR 30,000 mandatory for Schengen)
- Pre-existing condition cover: Essential for seniors and chronic conditions
- Cashless hospitals: Direct payment by insurer — avoid pay-first-claim-later hassles
- Compare on PolicyBazaar or Coverfox — prices vary 30-50% for same coverage
What It Costs: Real Numbers
Travel insurance is incredibly affordable relative to the protection it provides. For a 7-day trip to Southeast Asia: Rs 400-800 for basic cover, Rs 800-1,500 for comprehensive cover. For a 10-day trip to Europe: Rs 800-1,500 for basic (meeting Schengen requirements), Rs 1,500-3,000 for comprehensive. For senior citizens (above 60): expect a 50-100% premium over standard rates, but the coverage is proportionally more important — seniors are statistically more likely to need medical attention abroad.
- Southeast Asia (7 days): Rs 400-1,500 depending on coverage level
- Europe (10 days): Rs 800-3,000 (Schengen-compliant)
- Senior citizens: 50-100% premium over standard (still under Rs 3,000 for most trips)
- Annual multi-trip policies: Rs 3,000-8,000 — great value for frequent travellers
How to Make a Claim: Step by Step
If you need to make a claim, the process is straightforward but documentation-heavy. For medical claims: contact the insurer's 24/7 helpline immediately (before treatment if possible for cashless). Keep all hospital bills, prescriptions, and doctor reports as originals. For lost luggage: file a Property Irregularity Report (PIR) with the airline at the airport — this is mandatory for claims. For trip cancellation: provide proof of the reason (medical certificate, death certificate, official travel advisory). Submit all documents within 30 days of returning. Pro tip: photograph every document and email copies to yourself as backup.
- Medical: Call insurer helpline BEFORE treatment for cashless option
- Lost luggage: File PIR with airline AT the airport — no PIR = no claim
- Keep ALL original bills, reports, and prescriptions
- Submit claim documents within 30 days of return
Frequently Asked Questions
Is travel insurance mandatory?
Does travel insurance cover COVID?
Can I buy travel insurance after reaching the destination?
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