Why Indian Travellers Need Travel Insurance
International travel involves risks ranging from medical emergencies to flight cancellations and lost baggage. For Indian travellers, medical costs abroad are significantly higher than in India. A single hospital visit in the United States can cost thousands of dollars, while a basic travel insurance policy can cover these expenses fully. Beyond medical coverage, travel insurance offers financial protection against trip disruptions, delayed baggage, personal accidents, and third-party liabilities.
The Insurance Regulatory and Development Authority of India (IRDAI) regulates travel insurance products sold in India, ensuring standardised terms, transparent policy wordings, and fair claim settlement practices. As of 2025, IRDAI has mandated that all travel insurance policies must clearly list exclusions and provide a free-look period of 15 days for cancellations.
What Travel Insurance Covers
A comprehensive travel insurance policy for Indian travellers typically includes several key coverage areas:
Medical Emergency Cover
This covers hospitalisation, doctor consultations, prescription medicines, and emergency dental treatment while abroad. Medical evacuation to a suitable hospital and repatriation of remains to India are also included. Most policies offer a sum insured ranging from USD 50,000 to USD 1,000,000 depending on the destination and plan chosen.
Trip Cancellation and Interruption
Trip cancellation cover reimburses non-refundable expenses such as flight tickets, hotel bookings, and tour packages if you have to cancel due to unforeseen events like illness, accident, death of a family member, or natural disasters. Trip interruption cover pays for the unused portion of the trip if you have to cut your journey short and return to India early.
Baggage and Personal Belongings
Loss, theft, or damage to checked baggage and personal belongings is covered up to specified limits. Most policies also provide a delayed baggage benefit if your bags arrive more than 6 to 12 hours after you do, covering the purchase of essential toiletries and clothing.
Flight Delays and Missed Connections
If your flight is delayed beyond a specified period (usually 6 to 12 hours), you receive a fixed daily benefit to cover meals and accommodation. Missed connection cover applies when you miss a connecting flight due to delay of an incoming flight.
Personal Accident and Liability
Personal accident cover provides a lump sum payment in case of accidental death or permanent total disability during the trip. Personal liability cover protects you if you accidentally cause injury to another person or damage to their property.
How to Buy Travel Insurance in India
Indian travellers can purchase travel insurance through multiple channels. Most major insurance companies including ICICI Lombard, HDFC Ergo, Tata AIG, Bajaj Allianz, and Reliance General offer travel insurance products. You can buy directly from the insurer's website, through insurance aggregator portals like Policybazaar and Coverfox, or through travel agents. When buying, compare at least three policies based on sum insured, coverage inclusions, exclusions, claim settlement ratio, and premium cost.
Cost Factors for Travel Insurance
The premium for travel insurance depends on several factors: destination country (USA, Europe, and Australia are more expensive than Southeast Asia), age of the traveller (premiums increase significantly after age 60), trip duration (longer trips cost more), sum insured selected, and optional add-ons like adventure sports cover or pre-existing disease cover. A typical one-week trip to Europe costs between Rs. 1,500 and Rs. 3,000 for a traveller under 50 years of age.
IRDAI Regulations for Travel Insurance
IRDAI guidelines require all travel insurance policies in India to have a clear policy wording in simple language, a standardised proposal form, a 15-day free-look period for cancellation, and a grievance redressal mechanism. Insurers must settle or reject claims within 30 days of receiving all required documents. If you are unhappy with the claim decision, you can approach the Insurance Ombudsman or use the Bima Bharosa portal for resolution.
Visa Requirements by Destination
Schengen Visa
Travel insurance is mandatory for all Indian travellers applying for a Schengen visa. The policy must provide minimum coverage of EUR 30,000 for medical emergencies, be valid throughout the Schengen area, cover the entire duration of stay, and include emergency medical evacuation and repatriation cover.
United States (B1/B2 Visa)
While the US does not mandate travel insurance for tourist visa holders, it is highly recommended given the extremely high cost of healthcare. Many Indian travellers opt for policies with at least USD 100,000 in medical coverage. The US visa application form DS-160 does not ask for insurance details, but having coverage provides peace of mind.
Australia
Australia strongly recommends travel insurance for all visitors. While not mandatory for tourist visas, having adequate health insurance can be beneficial given that Australia's Medicare system does not cover international visitors. Some Australian visa categories require proof of adequate health insurance as part of the application.
Tips for Choosing the Right Policy
Always read the policy document carefully before purchasing. Check the list of exclusions, sub-limits, deductibles, and co-payment clauses. Ensure the sum insured is adequate for your destination. Verify the insurer's claim settlement ratio and network of cashless hospitals abroad. Purchase the policy immediately after booking your trip to avail trip cancellation benefits. Keep a copy of the policy and emergency contact numbers accessible during the trip.
Conclusion
Travel insurance is an essential part of trip planning for Indian travellers. It provides financial protection against unforeseen medical emergencies, trip disruptions, and loss of belongings. Understanding what is covered, what is excluded, and the applicable regulations helps you choose the right policy and avoid claim rejections. Always buy from a reputable IRDAI-registered insurer and read the fine print before making a decision.