Everything Indian Travellers Need to Know About Travel Insurance

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From accommodation and transport, to experiences, phone data and finances, there’s so much to organise when you travel. One key thing not to overlook is travel insurance. If you’re travelling from or within India, understanding how travel insurance works, what it covers, and how policies differ can help you choose protection that actually fits your trip.

In this guide we’ve broken it down and addressed these things, to help make planning your next journey that little bit easier. We'll also introduce you to the Wise Travel card, which allows you to hold 40+ currencies in on card and spend without any forex markups or hidden fees.

What is travel insurance?

Travel insurance is a type of insurance policy designed to help with unexpected costs that arise during your travels. Depending on the policy, it can include benefits for medical expenses, trip cancellations, travel delays, lost or stolen luggage, personal liability, and even rental car deductibles.

On top of the standard coverage, many policies can also be customised to include additional benefits, such as cover for two-wheeler riding, adventure sports, pre-existing conditions, or high-value belongings.

How does travel insurance work?

When you buy travel insurance, the policy will come with terms and conditions that outline the eligibility, benefits, limits, exclusions, deductibles (excess), and claim procedures. It’s important to carefully read the fine print to help avoid any unpleasant surprises down the road.

If something does go wrong during your trip and the event is covered by insurance, you’ll generally need to pay the expenses upfront then claim the money back. One of the main exceptions to this is emergency medical expenses, as many insurers provide "cashless" facilities where they pay the hospital directly.

Is travel insurance mandatory?

Whether travel insurance is a must-have or a nice-to-have often depends on where you are headed. While it is always recommended for financial safety, in many cases, it is a requirement for your visa approval.

For instance, the Schengen Area requires a minimum medical cover of €30,000, while countries like the UAE, Turkey, and Thailand mandate proof of health insurance for visa approval. Even where it isn't legally required, such as in the USA, UK, or Canada, the high cost of medical care makes it practically essential, and immigration officers may still request proof of financial coverage for emergencies. Without a valid policy, you risk having your visa application rejected or facing significant financial strain abroad.

Types of travel insurance available

There are popular providers in India such as HDFC ERGO, ICICI Lombard, and Tata AIG to consider when searching for the best Indian travel insurance; understanding the different policy types they offer will help you choose the right protection for your trip.

Single trip travel insurance vs Annual travel insurance

Depending on how often you travel, a single trip policy or an annual policy will make more sense.

• Single trip travel insurance covers one trip for specific dates.
• Annual travel insurance, often called multi-trip insurance, covers multiple trips over a 12-month period, with each one generally being limited to 30 to 90 days.

Single trip insurance is usually best for travellers going on a long journey or just one holiday, while annual travel insurance is better for business travellers or people who make multiple trips throughout the year.

Domestic travel insurance vs International travel insurance

The key difference between these two is relatively simple: domestic travel insurance is for travel within India, while international travel insurance is for travel abroad. Past that, there are some differences in what’s generally covered by the policy.

In India, while domestic travel insurance is available, international travel insurance is often seen as more critical due to the high cost of healthcare in foreign currencies.

Basic travel insurance vs Comprehensive travel insurance

A majority of travel insurance companies offer multiple tiers of coverage, with most being separated into basic and comprehensive cover.

• Basic travel insurance focuses on essentials, like emergency medical expenses for overseas travel and personal accident cover.
• Comprehensive travel insurance covers a greater range of events, such as lost or damaged luggage, travel disruptions, hijacked flights, and optional extras like adventure sports or burglary cover for your home while you're away.

Basic travel insurance has lower benefits and inclusions but is most cost-effective for budget travellers. Comprehensive insurance tends to have higher limits and cover more, which is better for people who want total peace of mind.

Credit card travel insurance

If you have a premium credit card, it may come with credit card travel insurance. To access your credit card travel insurance, there are generally specific spending requirements (like booking your tickets on the card), along with eligibility criteria and trip duration limitations.

Having credit card travel insurance is a useful option, especially since it’s usually complimentary, but you do need to assess if it’s enough for your specific destination.

Check out the best credit cards in India for travel insurance here.

What is covered by travel insurance

What’s actually covered by travel insurance varies depending on the policy and provider, but most include some combination of the following benefits.

Medical and emergency cover

International travel insurance generally includes cover for overseas medical treatment, hospital stays, emergency dental care, and medically necessary evacuation or repatriation. This is vital when travelling to countries like the USA or those in the Schengen Area, where quality medical care is very expensive.

Trip cancellation and interruption

Cancellation and interruption coverage is there to reimburse you for any prepaid, non-refundable expenses (like flight tickets or hotel bookings) in the event you need to cancel or cut your trip short. The policy documents usually have a list of acceptable reasons, such as a family emergency or sudden illness.

Luggage and personal belongings

Unfortunately, there’s always a risk that your luggage and personal items can be lost, stolen, or damaged. Travel insurance can offer cover for this, but be aware there’s usually a "per-item" limit, and high-value items like laptops or cameras may need to be declared separately.

Travel delays and disruptions

Some policies offer compensation for additional expenses caused by delayed flights or missed connections. Again, the reason for the delay must be a covered event such as bad weather or a strike, as per the policy documents.

COVID-19 cover

Most Indian travel insurance providers now include COVID-19 cover as standard. This can include medical treatment if you contract the virus overseas or cancellation costs if you test positive before departure.

Deductibles and policy limits

The deductible or excess is the amount you pay out of your own pocket when making a claim.

Policy limits cap how much the insurer will pay for each type of claim. These amounts represent your actual protection, so they’re important to check before buying.

How much does travel insurance cost?

The cost for travel insurance in India is variable, with several factors influencing the premium:

• Destination: The USA and Canada are typically the most expensive due to high healthcare costs.
• Trip length: Longer stays require higher premiums.
• Number of people insured and their ages: Premiums generally increase for senior citizens.
• Type of policy: Comprehensive plans cost more than basic ones.
• Add-ons: Coverage for adventure sports or pre-existing diseases will add to the cost.
• Deductibles: Choosing a higher deductible can sometimes lower your premium.

Holiday insurance tips: What to look out for

When choosing travel insurance, it’s worth spending time looking into the details and small print, rather than focusing solely on the cheapest price. Here’s what to look out for:

• Are the limits on medical expenses high enough for the country you’re visiting?
• Does the insurer offer a cashless claim facility?
• Are the activities you're planning (like scuba diving or skiing) covered?
• What are the specific policy exclusions?
• Do you have pre-existing conditions, and are they declared/covered?
• Can the policy be extended online if you decide to stay longer?

Safeguard yourself from foreign transaction fees with the Wise card

Travelling with peace of mind starts with the right insurance. Once you’ve got your travel insurance lined up, it’s time to work out the best way to spend when you’re overseas. With no hidden markups, the Wise Travel card is a smart way to spend abroad. You'll always get the real interbank exchange rate for conversions across 40+ currencies. Wise's transparent, low pricing, plus no foreign transaction fees or forex markups, usually means you are getting the best value for your money.

The fully digital account opening and vKYC process allows you to sign up from the comfort of your home, and there are no annual or monthly fees either. Simply order your card, show proof of your travels, load your funds, and you're all set. Plus - card orders are currently free to Indian addresses (limited time launch offer, while stocks last)! A physical Wise card enables you to make secure chip and PIN payments and get some free ATM withdrawals while you're overseas. You can also instantly freeze or unfreeze your card in the app anytime for peace of mind.

Wherever your travels take you, the Wise Travel card is the only forex card you'll need to make spending internationally simpler and cheaper.

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