Who doesn’t love to travel? Whether it be exploring the historical wonders of Rajasthan, traversing the glorious peaks of the Himalayan ranges, or immersing oneself in the backwaters of Kerala, one thing that needs to be considered at all times is travel insurance. Just like in other parts of the world, a travel insurance policy in India seeks to protect you and your belongings against unexpected mishaps, be they fatal or nonfatal.
Before you opt for any travel insurance policy, there are various key factors that you need to consider, and probably the most important of them all is the cost of it.
In this context, we will take a look at what the reasonable amount to pay for your travel insurance policy is in the first place.
How much should you pay for your Travel Insurance Policy?
A travel insurance policy seeks to provide coverage against unprecedented risks when you’re away from home, including canceled trips and baggage losses, medical emergencies, flight delays, and so on. A travel insurance plan is of vital importance, especially when you’re leaving India because medical care abroad can be quite exorbitant.
Let’s dive right into what all travel insurance caters to cover, and how much you should pay to get yourself insured when on a trip abroad.
What is Covered in your Travel Insurance Policy?
For every traveler out there, obtaining a travel insurance policy is an essential step in preparing for their trips. But what does travel insurance actually cover? The various facets covered by such an insurance policy include the following:
Medical emergencies and evacuation
With respect to unforeseen incidents or accidents, your travel insurance policy will cover your medical expenses. This comes in handy especially when medical care is extremely expensive in a foreign country.
Trip cancellations, delays, or interruptions
There can be various unavoidable circumstances that lead to an imminent cancellation of your trip. A travel insurance policy shall compensate for the non-refundable bookings that you’ve already made.
Flight accident or delay compensation
There can be a possibility of your flight getting delayed, and this can lead to additional expenses, especially when you have a connecting flight and miss it as well. A travel insurance policy will see to this matter, and moreover, if there’s a plane crash or a big accident while you’re aboard your flight, it will also compensate for your losses.
Lost, damaged, and stolen baggage
If you lose your valuables during your journey or even damage some of the items, a travel insurance policy will seamlessly cover your unforeseen expenses and even provide assistance in case you need to buy certain things until you receive your stolen luggage back.
Some of the other probable assistance provided by a travel insurance policy includes personal liability, coverage for certain adventure activities, plane hijacks, 24/7 guidance even in unreachable places, and so on.
Owing to all these necessary perks that come with obtaining a travel insurance policy, it is recommended that you don’t opt for the one that’s extremely cheap and doesn’t provide all the required facilities and amenities. Furthermore, you should stay aware of the terms of your travel insurance policy in order to be safeguarded while in transit.
What is the average cost of travel insurance in India?
To give you an estimated figure for a single trip:
Domestic travel insurance can range from INR 15 to INR 150 per day.
International travel insurance can range from INR 150 to INR 1,000 per day, depending on the destination of your travel.
As a rough estimate, the cost of a travel insurance coverage should account for between 4% and 12% of the total amount you have paid for your trip. For instance, if your vacation costs 1 lakh, your travel insurance coverage may cost 4,000–12,000. This is subject to change with your age, the duration of your trip, and several other reasons.
It is beneficial to underline the fact that these are approximate price ranges, which may vary depending on factors like, your travel destination, the activities you are likely to carry out, the political and religious situation in that very place, and your pre-existing health conditions, among other relevant things.
What are the various factors that determine the cost of obtaining a travel insurance policy?
Various elements are kept in mind while determining the cost of a travel insurance policy in India. Some of the primary considerations include the type of coverage, the chosen travel destination, the duration of the trip, the age and health of the traveling individual, and the different activities to be carried out.
When it comes to the type of coverage, the obvious conclusion is that full packages including luggage, health, trip cancellation, and so on, are going to be much more expensive when compared to simpler packages that won’t provide every facility.
Talking about your chosen destination of travel, if you’re planning a trip to the US, where the cost of healthcare and other mandatory aspects are quite exorbitant, the travel insurance policy is going to be very expensive in comparison to a trip in Southeast Asia, for instance. Also, the greater the duration of your trip, the greater the payable premium will be because your exposure gets extended.
Another important factor you should keep in mind is that if you’re an aged traveler or have a history of diseases and ailments, you could end up paying more.
Lastly, if you’re planning to engage in adventurous activities or other high-risk sports, you will be required to buy an additional policy to cover your unforeseen expenses, which will most likely be very expensive.
How do you find the right balance between pricing and the facilities provided by a travel insurance policy?
While pricing is probably the most important criteria of focus when buying a travel insurance policy, there are various other factors that you need to keep in mind, and then opt for the policy that caters to every need and requirement of yours.
When you’re seeking to choose a travel insurance plan to cover every medical and unprecedented emergency during a trip, it’s essential to find the right balance between the facilities being provided to you and the amount you are being asked to pay.
Some of the pointers that’ll ensure you get the best value for your money include, comparing multiple travel insurance providers, determining your needs, understanding every term and condition, opting for a higher deductible policy, and buying an annual multi trip policy if you’re a frequent traveller.
Comparing multiple travel insurance providers
You should research and compare plans from numerous insurance providers before you settle on any policy. In this regard, the different online travel insurance comparison tools can be extremely beneficial.
Assessing your needs and requirements
The needs of a luxury traveller is likely to be quite different from that of a regular backpacker. First you should assess your needs and requirements, and then search for a policy that caters to those needs of yours.
Reading the fine print
Ensure that you understand the various terms and conditions of every travel insurance policy you come across, and identify all that are included and excluded in them.
You surely wouldn’t want any nasty last moment surprises to bother you financially.
Opting for a higher deductible policy
You should opt for a travel insurance policy with higher deductibles if you are certain that your chances of making a claim are minimal. This way, you can reduce your premium significantly.
Annual multi-trip travel insurance policy
For frequent travelers, it is advised to opt for an annual multi-trip travel insurance policy rather than one plan per trip, as the expenses incurred will be comparatively lesser than when you buy a plan for every trip of yours.
Final Words
Travel insurance is of primary importance to every individual out there planning a trip, be it within India or abroad. No one can guarantee protection from untoward incidents and mishaps like accidents, flight delays, loss of luggage, medical emergencies, and so on. This makes a travel insurance policy all the more crucial in today’s world.
Different travel insurance policies come at different prices and coverage features. As a result, understanding different terms and conditions of a travel insurance policy, and comparing different plans to understand what fits your budget the best possible way, is extremely important.