Travelling for any reason comes with the risk of the unknown. Whether you are travelling to study or to enjoy some special time with your loved ones, it is important that you ensure your safety throughout the trip. This is where travel insurance comes into play.

However, not many of us give priority to this powerful weapon for financial protection.

“But, what is travel insurance?” you ask.

Well, this article is where you will find your answers to everything related to travel insurance in India and will guide you on how to choose a travel policy.

What is Travel Insurance?

Travel insurance is a short-term insurance policy that provides financial protection against the risk of travel-specific emergencies and concerns such as flight cancellation, medical expenses, loss or theft of luggage/passport, accidents, and more.

Travel Insurance is extremely important in case you want to reduce the risk of being stranded in an unknown city.

While it is always essential to have travel insurance, here are a few scenarios where it is imperative to buy a Travel Insurance policy:​

• When you are travelling to a place where there is a high probability of you falling sick and/or the medical costs are exorbitant.

• When you are travelling with extravagant baggage or extremely important or sensitive documents.

• When you are travelling to a place which is high on risk. e.g. political animosity, terror attacks etc.​

Apart from these situations, there is a high probability of a person missing out on his connecting flight, meeting with third-party liabilities or needing to curtail the trip. In such scenarios, a Travel Insurance is extremely essential considering its minimal cost and wide coverage.

How Does Travel Insurance Work?

A travel insurance plan is an agreement between you and your insurer to offer financial protection against a wide range of travel-related risks. When you purchase an international travel insurance policy, you will pay a premium to the insurance provider.

In return, the insurer will cover specific unforeseen incidents such as baggage loss or delay, trip cancellations and flight delays.

In the event of any covered incident, you can file a claim with the insurer using the supporting documents. The insurer will examine your claim and, if approved, reimburse you for the applicable expenses up to the specified limits.

What Does Travel Insurance Cover?

Cover for Luggage Loss or Delays

If your checked-in luggage is delayed, coverage will be provided for purchasing personal items you may require until your luggage arrives. If your luggage is lost by the airlines, then compensation will be provided for the loss of property.

Cover for Loss of Passport

Loss of your passport, the most important travel document, can lead to extremely stressful situations. In such cases, you will get covered for the expenses incurred to get a duplicate or new passport.

Cover for Medical Expenses

Medical expenses are exorbitant in other countries. Getting injured or meeting with an accident during your travel can rob you of your life’s savings.

With a travel policy to shield you, expenses incurred due to dental treatments, hospitalisation, medical evacuation, accidents that result in permanent disability or death, and repatriation of mortal remains are provided for by your insurer.

Medical evacuation provides travellers with emergency transportation either to local hospitals or near to their home. In case of health or medical issues, the traveller is reimbursed for emergency medical expenses, including medical and dental costs.

Cover for Trip Cancellations

In case of interruption, insurance providers would pay up money to policyholders if they had to cut their foreign trip short because of adverse conditions, sudden unemployment, bankruptcy, airline strikes, weather, terrorism and the like. It can cover for the non-refundable prepaid payments before the date of departure.

Protection from Flight Delays or Missed Flights

Missing connecting flights or flight delays can result in major financial loss when travelling abroad. However, with a travel policy to cover you, it is possible to receive reimbursement for extra transportation costs and losses.

​Compensation for Personal Liability​​

Personal liability refers to financial compensation you owe to a third party, either because you damaged their property or caused them physical injury. This amount can be surprisingly high when such an incident occurs overseas. Coverage will be provided for financial compensation if you invest in a travel policy.

Also Read: Reliance Travel Care Insurance Policy Features

Types of Travel Insurance Plans

Coverage in travel insurance is categorised under different types as mentioned below:

Travel Insurance - Benefits

Financial Security

As we have seen, travel insurance covers unprecedented expenses and compensates for unforeseen losses. It ensures you don’t have to bear the financial impact of such unexpected scenarios while travelling and exploring a foreign destination.

Customisation​​​

With the different types of travel insurance plans available and the extensive flexible features applicable, you can choose a travel insurance plan and personalise it as per your specific requirements.

Meets Legal Requirements

For some countries, a travel insurance policy is mandatory and serves as an essential document in visa applications.

<Gives Peace of Mind

Knowing that you are protected against a wide range of risks, from medical emergencies to trip cancellations, you can travel with peace of mind focussing, on the purpose of your trip.

How to Choose the Right Travel Insurance Plan?

When it comes to making trip insurance comparisons, you have to consider the following aspects so that you don’t end up buying the wrong policy:

Understand your Requirements​​

Assess your travel plan and find possible risk factors, including your health condition, to understand your travel insurance requirements. You can also consider the purpose and duration of your stay in a foreign land to determine the type and extent of travel insurance coverage needed.

Compare the Types of Travel Insurance Options

Compare the different types of travel insurance plans and evaluate their features and benefits before choosing the best travel insurance plan.

See What They Offer in Medical Coverage

Falling ill or meeting with an accident is unwanted and, generally, unexpected. However, it is a major cause for concern, especially considering the excessive medical treatment costs.

The best travel insurance will provide you financial coverage for medical costs that you incur overseas due to medical treatments, dental treatments(due to accident), transportation and repatriation.

Check their Claim Process

Check the travel insurance claim process of the insurer. It should be seamless and not take long for you to settle your claim, especially as unexpected situations leave you stranded in a foreign land without any assistance.

Read Exclusions Carefully

Make sure you know the policy's exclusions by heart. This way, you will be better prepared when making claims. Also, if the exclusions do not meet your expectations, you should continue searching until you find a policy with extensive coverage.

Check for Customer Reviews and Claim Settlement Ratio

A high claim settlement ratio indicates the insurer’s reliability in processing the claims, and positive customer reviews reflect good customer service.

Conclusion

There is no doubt that travel insurance is one of the best decisions that you can make before travelling, especially if you are going overseas. Selecting the right travel policy can protect your finances by providing coverage from incidental expenses.

Reliance General Insurance offers a diverse range of travel insurance plans, tailored to various needs, including specialised insurance policies for travelling to different countries.

With comprehensive coverage, including coverage for medical emergencies and travel-related losses, our International Travel Insurance is a shield worth protecting your investment (travel expenses). Learn more about this and other travel policies by browsing through our website.

Frequently Asked Questions

What is trip cancellation insurance?​

Suppose you suddenly fall ill before your trip, or a terrorist incident or bad weather interrupts the trip. In that case, the insurance policy that will provide you reimbursement for the forfeited non-refundable ticket paid through a prepaid method before the departure date is called trip cancellation insurance.

Why is it important to have travel insurance?​

Travel insurance is important because it protects your investment(the cost of your entire trip), provides coverage against unexpected expenses and medical emergencies, and also gives you peace of mind.

What is the difference between single-trip and multi-trip travel insurance?​​​​

A single trip travel insurance covers one specific trip. On the other hand, multi-trip travel insurance offers coverage for multiple trips within a year. It is a convenient and cost-effective option for frequent travellers.