Travelling Abroad? Your ₹500 Policy Covers ₹1Cr
Travel insurance is booming in India, with more flyers buying coverage before heading overseas. But most people don't fully understand what these policies cover — from medical emergencies to lost baggage and trip cancellations. This guide breaks down how travel insurance actually works and what you must check before buying one for your next international trip.
The average international travel insurance policy in India costs less than two cups of airport coffee — roughly ₹400 to ₹700 per trip — yet it can cover medical bills worth ₹50 lakh or more if you fall sick abroad.
A single hospitalisation abroad can cost your family ₹83 lakh or more — a travel insurance policy costing under ₹1,000 can cover this entire amount, protecting your savings from being wiped out overnight.
Key Takeaways
Always check the medical coverage limit — aim for at least USD 1,00,000 (around ₹83 lakh) for destinations like the US, Europe, or Australia where hospital bills can bankrupt a family in days.
Read the exclusions section carefully: pre-existing conditions, adventure sports, and alcohol-related incidents are commonly rejected claims — declare everything honestly when buying the policy.
Buy travel insurance at the time of booking your tickets, not at the airport — trip cancellation and delay benefits only kick in if the policy is bought before the disruption occurs.
Travel insurance has quietly become one of the smartest purchases an Indian traveller can make — and more people are waking up to this fact. Policy issuances have grown significantly in recent years as Indians travel more for work, leisure, and education. Yet many buyers still treat it as a formality, picking the cheapest option without reading what's actually covered. That's a costly mistake.
At its core, a travel insurance policy bundles several protections into one product. The most important is overseas medical cover — this pays for hospitalisation, emergency surgery, or medical evacuation if you fall sick or get injured abroad. In countries like the USA or Switzerland, a single night in hospital can cost USD 5,000 to USD 20,000. Without insurance, you'd have to pay this from your own pocket or break your fixed deposits back home.
Beyond medical, good travel policies also cover trip cancellation (if your trip gets cancelled due to illness or a family emergency), trip delay (compensation for hotel stays if your flight is delayed beyond a threshold), lost baggage, loss of passport, and personal liability if you accidentally damage someone's property. Some premium plans even cover adventure sports like skiing or trekking — but you usually need to opt in specifically.
The golden rule: read the exclusions. Pre-existing conditions like diabetes or hypertension are often not covered unless you pay extra for a waiver. Claims related to alcohol consumption, self-inflicted injuries, or undeclared high-risk activities are almost always rejected. When you make a claim, the insurer will scrutinise the circumstances — honesty at the time of purchase protects you at the time of need. You can use GoCredit to compare travel and other insurance products and find plans that genuinely match your health and travel profile.
Pro tip: For Schengen visa countries, travel insurance with minimum EUR 30,000 medical cover is mandatory — but buy well above that minimum. Check if your credit card already includes complimentary travel cover before buying a separate policy, and always carry a printed copy of your policy document along with the insurer's international helpline number.
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