As New Year travel plans gain momentum, thousands of Indians are preparing for international holidays. From Europe and the US to Dubai and Southeast Asia, overseas travel is back in full swing. However, experts warn that travelling abroad without the right travel insurance—or with an inadequate policy—can turn a dream vacation into a financial nightmare.
While travel insurance may seem like a minor expense, even a small mistake while buying it can lead to losses worth lakhs of rupees. In countries like the United States and Europe, a single day of hospitalisation can cost anywhere between ₹30 lakh and ₹50 lakh. In contrast, a basic single-trip travel insurance policy is often available for as little as ₹500 to ₹2,000. The real risk lies not in skipping insurance, but in choosing the wrong coverage or hiding important details.
One of the most frequent mistakes travellers make is opting for minimum coverage. For instance, a Schengen visa requires a minimum medical cover of €30,000 (around ₹27 lakh). While many travellers buy policies that just meet this requirement, insurance experts strongly recommend opting for at least double this amount, especially when visiting expensive destinations. In several European countries, the cost of an ICU bed for just one day can exhaust the minimum coverage entirely.
Another serious error is hiding pre-existing medical conditions such as diabetes, high blood pressure, or heart-related issues. Many travellers assume these conditions are insignificant, but non-disclosure can lead to outright rejection of claims, even in emergencies. Full transparency is essential while purchasing a policy, especially for senior citizens.
Many travellers focus only on medical coverage and overlook other critical benefits. A comprehensive travel insurance policy should also include:
Flight delay and cancellation cover, which can help pay for hotel stays and meals
Loss or theft of baggage and personal belongings
Trip cancellation or interruption, especially due to medical or family emergencies
Experts also caution travellers to check sub-limits within policies. Even if the total sum insured appears high, sub-limits on hospital room rent, ICU charges, or specific treatments can significantly reduce the actual claim payout.
Selecting travel insurance should never be a one-size-fits-all decision. The right policy depends heavily on the purpose and nature of travel.
Business travellers should ensure coverage for laptops, gadgets, and missed connections.
Adventure travellers must include activities such as scuba diving, skiing, trekking, or paragliding, as these are often excluded by default.
Travellers to the US and Europe should opt for high medical coverage due to steep healthcare costs.
Trips to destinations like Thailand or Dubai may work with a balanced plan offering moderate coverage.
For senior citizens, policies with a cashless hospital network are highly recommended. They should also disclose their complete medical history to avoid future claim complications.
Understanding the fine print can make a significant difference at the time of claim. Two aspects that need special attention are:
Deductibles: The amount you need to pay out of pocket before the insurance kicks in
Exclusions: Situations or conditions not covered under the policy
Failing to understand these can lead to unpleasant surprises during emergencies.
Experts advise travellers to activate their insurance policy immediately after purchase and save the 24/7 helpline number on their phones. In case of an emergency or claim, documents such as passport copies, medical bills, hospital reports, boarding passes, and FIR (in case of theft) should be submitted without delay.
Prompt intimation to the insurer and timely documentation can significantly improve claim settlement chances.
Travel insurance is not just a formality—it is a critical financial safety net when travelling abroad. A small oversight, such as low coverage or incomplete disclosure, can result in massive financial losses. With the right planning, adequate coverage, and careful reading of policy terms, international travel can truly be worry-free.
As experts caution, don’t let one small mistake turn into a loss worth lakhs. Choosing the right travel insurance could be the smartest decision you make before boarding your flight.
