Travel Insurance- FAQ : My Insurance Bazaar

Why travel insurance
What is insured
What is not insured
Countries covered
Types of travel insurance
Who can take travel insurance
How much to insure for
Duration of insurance
How is insurance premium calculated
What is the maximum age
Cashless facility
Indians studying overseas


Why travel insurance
One usually travels abroad either on business or leisure. The situations like a medical emergency or an accident or loss of baggage or loss of passport can ruin your holiday or your crucial business meetings. Travel Insurance provides protection against such emergencies and helps you address these situations in a foreign land.

What is insured
Most insurance companies offer the following insurance coverage under a standard Travel Insurance policy.

  • Medical expenses incurred as an in-patient overseas
  • Compensation for accidents leading to permanent disability or death
  • Loss of baggage
  • Loss of passport

What is not insured
There are some common exclusions to a travel insurance cover, as under. However, the exclusions differ from plan to plan.

  • Flights/trains missed due to local protests/civil war
  • Expenses incurred due to local protests/civil unrest
  • Baggage delay that is less than 24 hours
  • Damage/loss of keys
  • Expenses arising out of loss of valuables, money, securities and tickets
  • Sporting activities
  • Pre-existing conditions except in case of life-threatening situations
  • Addiction to alcohol, drugs
  • Mental disorder, anxiety, depression
  • Venereal diseases
  • Sexually transmitted diseases, AIDS, HIV
  • Radiation, nuclear weapons induced
  • Naturopathy treatment, ayurvedic /homeopathic therapies
  • Treatment relating to removal of physical flaws-cosmetic or plastic surgery
  • Costs incurred relating to rest or recuperation at a spa or health resort

Countries covered
Almost all countries are covered and, typically, the countries are bundled into three broad categories by most insurance companies.

  • Worldwide excluding Americas
  • Worldwide excluding USA and Canada
  • Asia excluding Japan

Types of travel insurance
There are three generic types of travel insurance plans.

  • Single Trip (for one-off trips overseas)
  • Multiple Trips (for those who travel overseas frequently)
  • Students Overseas Travel insurance

Who can take travel insurance
Any Indian who is travelling overseas for business or holiday can take Travel Insurance for self and his / her family. Indian Students who are studying abroad and require long-term insurance can also take travel insurance.

How much to insure for
There are multiple factors which determine the value one should insure for e.g., duration of stay overseas, the countries to be visited, age. Longer stay abroad needs higher sum insured. Higher age too would also require that one chooses higher sum to be insured. Usually the Medical Insurance component can be covered up to US $ 250,000.

Duration of insurance
Usually International travel cover can be purchased for 180 days at a time, and can be extended for another 180 days.

How is insurance premium calculated
Insurance premium is calculated based on, inter alia, the countries to be visited, duration of stay and the age of the travellers.

What is the maximum age
Travellers up to the age of 70 years are insured by most companies, some even without any medical check-up.

Cashless facility
Cashless facility means a facility extended by the insurer where the payments, o f the costs of treatment undergone by the insured in accordance with the policy terms and conditions, are directly made to the overseas healthcare provider by the insurer. All insurance companies have tie-ups with the organizations overseas which facilitate processing and payment of hospital bills.

Indians studying overseas

  • Health insurance is mandatory for most foreign universities including popular destinations like Australia, US, Canada, New Zealand, etc.
  • Quite a few universities abroad allow waiver from on-campus health insurance with comparable domestic insurance policies
  • For overseas students Travel Insurance is available with a continuous cover for 2 years (auto-renewals). One may also opt for the regular 1 year policy and then extend if required to the second year. But extension needs be done three months in advance of expiry. The students studying overseas can insure up to US$ 500,000 .