Travel insurance generally safeguards or compensates you financially due to certain risks that may occur during the trip: getting sick or having an accident abroad, trip cancellation, losing luggage, flight delay, having the passport stolen, etc. Most of the time you purchase it per trip (or can consider getting an annual one if you travel regularly), pay once, and the policy takes care of the mentioned risks.
In the situations of losses, you either go through the insurer's cashless service where they settle the bill directly, or pay out of your pocket and afterwards you return the claim for reimbursement together with the necessary documents.
What does Travel Insurance Cover?
Usually, travel insurance plans combine several types of coverage in one package. The exact coverages and their limits mainly depend on the policy, but a standard international travel insurance generally includes the following:
| Cover | What it pays for |
|---|---|
| Emergency medical expenses | Hospital, doctor and treatment charges due to illness or accident abroad |
| Medical evacuation and repatriation | Take you to a suitable medical facility or cover the cost of bringing you back home. |
| Trip cancellation and interruption | Non-refundable expenses if you cancel or shorten a trip for a covered reason |
| Baggage loss and delay | Luggage lost from the moment of check-in, when the airline loses, damages or delays baggage. |
| Flight delay and missed connection | A set amount of compensation or reimbursement if a flight gets delayed for more than a specified number of hours |
| Passport loss | The cost involved in obtaining a replacement or emergency passport |
| Personal liability | Legal expenses in the event that you inadvertently harm someone or damage their property |
For the adventurous, some insurance policies offer adventure sport cover, cover for a hijacking incident, dental emergency cover, or cover for a family member in a hospital. The main headline covers what people buy insurance for: emergency medical treatment abroad, where even a single hospital stay may run up to lakhs of rupees.
Domestic travel policies operate on very similar principles. However, the covers are modified to match trips inside India. Since your domestic health insurance is already working in your area, the health care part of a local travel insurance usually is very limited or is given as a daily cash hospital benefit rather than for the whole cost of treatment. Below is the typical guarantee coverage:
Provision for accidental hospitalisation and personal accident cover during holiday
Coverage when you have to cancel or interrupt your trip for a covered reason
Payment for the loss of or delay of baggage plus checked-in baggage
Reimbursement for flight delays and missing connecting flights
How to Select and Buy Travel Insurance?
Pick the trip type and destination
Picking the right trip plan is important. Therefore, pick a single-trip plan for one holiday, or a multi-trip annual plan if you travel often throughout the year. The destination is important because medical costs and visa regulations vary across regions.
Choose a sum insured
This is the maximum amount the insurance company will pay. Medical coverage limits for global plans are often set at USD 50,000, USD 100,000, USD 250,000, or even higher.
Compare features and exclusions
Don't just look at the price alone. Take into account luggage and trip interruption cover limits, deductibles, and exclusions as well. A lower-priced policy with a lot of exclusions might cause you to pay more later if you file a claim.
Declare travellers, ages and health
The older the traveller and the longer the trip, the more expensive the insurance will be. Disclosure of pre-existing conditions is mandatory for some policies;
Pay the premium and get the policy
Your policy document includes all of your cover limits, exclusions and a 24x7 assistance helpline number. It is recommended that you always carry it with you.
How do Travel Insurance Claims Work?
A travel insurance claim is the method by which the insurer reimburses you for a covered loss. An insurer can settle a claim in two different ways. Knowing which method is applicable will change your actions at the time of loss.
| Feature | Cashless | Reimbursement |
|---|---|---|
| Who pays the provider | Direct bill settling by the insurer | Paying upfront and claiming later |
| Where it works | Only in network hospitals or providers linked to the insurer | Works anywhere, including non-network hospitals |
| What you do | Call the helpline, get treatment approved | Keep all bills, reports and proof; submit a claim form |
| Best for | Works well for large planned or emergency hospital bills | Baggage, delays, smaller expenses, and non-network care |
In case of a medical emergency, you should first call the 24x7 assistance number if possible before seeking treatment. This will help the insurance company arrange cashless support and save you from the hassle of having to pay a large amount of money in foreign currency upfront.
Scenario-Based Example
Let's say you are on a trip and your checked luggage gets misplaced, so you decide to buy some essential items for a few thousand rupees while you wait. What you would do is keep the purchase bills, the airline's property irregularity report and your boarding pass, then fill out the claim form and send all documents to the insurance company. As it is a small, out-of-network expense, it will be handled on a reimbursement basis: you pay first, then receive reimbursement after the insurance company has reviewed your documents.
When Should You Buy Travel Insurance, and How Long Does Cover Last?
The main thing to remember is to purchase travel insurance as you book the trip, in fact, you shouldn't wait till flying day. First and foremost, trip cancellation insurance will only work for you if an unexpected event occurs after you buy the policy. If you cancel your trip even before getting insurance, there won't be any possibility to claim afterwards.
Single-trip insurance usually provides cover from departure to return of an insured trip. Most of these policies also have a limit on how many days your trip can last.
Annual multiple-trip insurance allows you to go on unlimited trips throughout the year. However, there is a time frame within which each trip has to be completed, usually 30, 45, or 60 days.
Student and elderly health insurance are customized plans that offer longer periods or benefits suitable for the age of the insured.
Generally, medical insurance is valid only for the duration of your trip, i.e., the time when you are travelling. Nevertheless, trip-cancellation insurance begins coverage from the day you purchase the policy up to the day you leave. It is always best to check the policy for the exact coverage start and end points.
What is Not Covered by Travel Insurance?
Every policy has a section on exclusions, that is, circumstances in which claims will be rejected. Most travel plans will have some or all of the following common exclusions:
If you have a pre-existing medical condition, unless it was declared and covered specifically
If you get injured due to being under the influence of alcohol or drugs
If you get into a sport-related accident while doing adventure or extreme sports, and you have not purchased an extra cover for that
If you go on a trip against your doctor's advice or for a pre-planned medical treatment abroad
If you suffer a loss and don't report it to the police or airline within the set time
If there is war, civil unrest, and you travel to destinations under an official advisory
If your baggage is left unattended or if you don't declare your valuables
Before buying, don't forget to look at the exclusions list to avoid making claims that would be denied later on, leading to disappointment. Main reasons for claim rejection are: failure to reveal pre-existing conditions, not submitting enough evidence (police report, airline PIR, original bills), and making a claim for coverage that was never included.
Report losses immediately
If your baggage gets lost or stolen, in most cases you will have to report the issue to the airline (by filing a Property Irregularity Report) or the local police within a set period, typically 24 hours. One of the main reasons why even legitimate loss claims are turned down is the failure to submit the report on time..
Is Travel Insurance Mandatory?
In general, carrying travel insurance is not a mandatory requirement everywhere, although some places even linking it to receiving a visa. For instance, one of the requirements for obtaining Schengen visa (which allows entry to most European countries) is to show a travel medical insurance that covers at least EUR 30, 000. There are also cruises and countries which set their own minimum limits.
Key Takeaways
Travel insurance is a short-term policy which insures or compensates for certain losses incurred on a trip up to the insured amount.
Usual benefits include coverage for medical emergencies, evacuation, trip interruption, loss of baggage, and delayed baggage, flight delay, loss of passport, and personal liability.
Some of the usual insurance policy exclusions include failure to declare a pre-existing condition, getting injured because of drinking alcohol, doing adventure sport without having proper insurance, and not reporting the loss within an appropriate period of time.
The Schengen visa requires that medical travel coverage should be at least EUR 30, 000.
Frequently asked questions
Yes. It is possible to get trip insurance after departing from the home country but the choices will be quite limited. Usually, standard plans for trip cancellation by Indian providers are bought before the trip.
No. A typical policy would only cover cancellations if triggered by very specific events, e.g., illness, injury, or the death of a family member. If you decide to cancel just because you have changed your mind, that will not be covered unless an additional 'cancel for any reason' option has been purchased, where it is available.
Deductible/excess is the amount that is pre-agreed which you will decide to pay per each claim from your own resources, and the insurance cover will be responsible for the rest.
If you declared it and the insurer agreed to cover it, maybe for an extra premium. Undeclared pre-existing conditions are a standard exclusion and a leading factor in rejected medical claims.
Yes, first you need to call the insurance company's 24/7 helpline. For any medical emergencies, they can provide you with a cashless treatment facility at a hospital in their network. In case of loss of baggage or delays, you should immediately report the matter to the airline or police and keep a record of all receipts, reports, and bills for filing your claim.
About the authors
Nikhila PS
Written by · Senior Content EditorNikhila is a content creator with 6+ years in EdTech and motor insurance, turning complex policies into clear, engaging content. She enjoys exploring digital trends, social media, and art while planning her next short escape.
Rekhit Singh Kaushal
Reviewed by · Senior Director - Motor UnderwritingRekhit Singh Kaushal is Senior Director at ACKO, a leading digital motor insurance provider in India. With deep expertise in insurance strategy and innovation, he brings trusted insights on car and bike insurance to help drivers stay protected.
