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Cashless vs Reimbursement Claims in Travel Insurance: Which Works Better?

Team AckoOct 31, 2025

When it comes to planning a trip, we’re always excited about the sightseeing, relaxation, or adventure that awaits us, but we rarely ever think about the medical emergencies that can come up during these trips. It’s natural to think about the pros of a vacation, but sometimes it’s also equally important to think about the possible cons of one. Unexpected illnesses, injuries, or hospital visits can be costly and stressful, especially in a foreign country.

Travel insurance is made to handle these situations, offering financial protection and peace of mind. When it comes to using your insurance, claims generally follow one of two paths: cashless or reimbursement. Each of them has its own perks, limitations, and ideal use cases. In this blog, we’ll explore how cashless and reimbursement claims work, what the difference between them is, and how to decide which option will work best for you.

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Contents

What Are Cashless Travel Insurance Claims?
- How it works:
- Advantages vs. Disadvantages of Cashless Travel Insurance Claims
How Reimbursement Travel Insurance Claims Work?
- How it works:
- Advantages vs. Disadvantages of Reimbursement Travel Insurance Claims
Cashless vs Reimbursement Claim Process in Travel Insurance: Key Differences
Which Claim Type Should You Choose?
- When are cashless claims ideal?
- When are reimbursement claims ideal?
Conclusion
Frequently Asked Questions

What Are Cashless Travel Insurance Claims?

Cashless claims are a popular feature of travel insurance policies. Simply put, a cashless claim allows you to receive treatment at a network hospital without having to pay the medical bills upfront. The insurer directly settles the eligible expenses with the hospital.

How it works:

You visit a network hospital specifically mentioned by your insurer.
The hospital coordinates with your insurer to verify or confirm coverage.
After the claim gets approved, you receive treatment without paying out-of-pocket.
If there are any non-covered or additional services, those must be paid by you.

Advantages vs. Disadvantages of Cashless Travel Insurance Claims

Here are the advantages and disadvantages of cashless claims in travel insurance:

Feature	Advantages	Disadvantages
Payment at hospital	No upfront payment required; insurer settles bills directly with the hospital	Limited to network hospitals and might not be available in remote areas
Speed and convenience	Quick approval and settlement with minimal paperwork	Some pre-authorisation may be required, which could delay urgent treatments
Access to care	Access quick treatment at reliable hospitals	Only covers treatments listed under cashless terms; exclusions may apply
Financial safety	Reduces the stress of arranging funds during emergencies	Extra or non-covered services must be paid from your own pocket
Paperwork	The insurer handles all paperwork and payments	May require prior intimation or verification for certain treatments

How Reimbursement Travel Insurance Claims Work?

Reimbursement claims work a bit differently. You pay for your medical expenses upfront and then submit a claim to your insurer to get refunded later.

How it works:

You can get treatment at any hospital, whether it is part of your insurer’s network of hospitals or not.
After treatment, you need to collect all relevant documents, such as medical bills, prescriptions, and other required papers.
You then submit these documents to your insurer for review.
Once the insurer processes your claim, they reimburse the approved expenses, usually within a specified time frame.

Advantages vs. Disadvantages of Reimbursement Travel Insurance Claims

Here are some of the advantages and disadvantages of reimbursement claims in travel insurance:

Feature	Advantages	Disadvantages
Payment at hospital	Freedom to choose any hospital, network or non-network	You must pay medical bills up front and wait for reimbursement
Speed and convenience	Can access treatment immediately, even where no network hospital exists	Submission of bills and documents can be time-consuming
Access to care	Wider choice of hospitals and treatments, including specialised care	Reimbursement may be partial if some items are not covered
Financial safety	Covers eligible medical expenses up to the limit mentioned in the policy	Out-of-pocket payment may cause temporary financial strain
Paperwork	Fewer restrictions on hospital selection and treatment	Extensive documentation is needed for claim processing

Cashless vs Reimbursement Claim Process in Travel Insurance: Key Differences

Let’s take a quick look at a few differences between the two:

Feature	Cashless Claim	Reimbursement Claim
Payment at hospital	Directly by the insurer	Paid by the insured, then reimbursed
Network hospital	Limited to network hospitals	Any hospital
Upfront payment	No	Yes
Paperwork	Minimal	Extensive
Processing time	Immediate or very quick	Can take days or weeks
Flexibility in payment	Limited	High

Which Claim Type Should You Choose?

Whether a cashless claim or reimbursement claim works for you will really depend on what your needs and preferences are. Let’s look at some common scenarios to see which option might suit you best:

When are cashless claims ideal?

Cashless claims offer convenient, quick medical access, eliminating the need for upfront payments or paperwork during international emergencies.

Short trips abroad: Carrying large sums of cash or handling currency conversions for hospital bills can be stressful. Cashless claims take that worry off your plate.
Emergencies in cities with network hospitals: When every minute counts, cashless claims make it easy to get prompt treatment without having to pay upfront.
Stress-free travels: If avoiding the stress of paperwork and upfront payments matters, cashless is the way to go.

When are reimbursement claims ideal?

Reimbursement claims offer flexibility and choice, allowing access to medical care anywhere, even without network hospitals.

Remote locations or small towns: If network hospitals are scarce or unavailable, reimbursement ensures you can still get treated.
Specialised treatments: Certain procedures or medications may not be covered in network hospitals.
Flexible travel plans: You have the freedom to choose your healthcare provider without restrictions.

Conclusion

Cashless claims give you convenience and immediate support at network hospitals, while reimbursement claims give you flexibility and freedom of choice. By truly understanding how each of them works, you can guarantee yourself a trip that doesn't give you a headache in case any medical emergencies come up. With ACKO’s travel insurance, you get the best of both worlds — quick cashless assistance and smooth reimbursement support — wherever your journey takes you.

Frequently Asked Questions

Can I use a cashless travel insurance claim at any hospital abroad??

No. Cashless claims are only available at hospitals that are part of your insurer’s network. Non-network hospitals require reimbursement claims.

Can I switch from cashless to reimbursement claims in travel insurance?

Yes. If a network hospital isn’t available or if you choose to get treated elsewhere, you can pay upfront and file a reimbursement claim.

How can I find the hospitals that have cashless claims abroad?

Most insurers provide a list of network hospitals on their website or mobile app, which you should check before travelling.

Does a travel insurance policy have an option for both cashless and reimbursement claims or only one of them?

Yes. Many travel insurance policies let you choose both. Cashless claims work at network hospitals, while reimbursement claims cover treatment you pay for upfront at any hospital.

Do I need to apply separately for these claims?

No.

How long does it take to get reimbursement for travel insurance claims?

Reimbursement usually takes 7 to 30 days after you submit all the required documents. The insurer reviews your claim and credits the approved amount to your account. Delays can occur if paperwork is missing or incomplete.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet, and is subject to changes. Please check the policy document for cancellation reasons, and terms and conditions of the policy.