5 Myths Of Travel Insurance

  • Author :
  • TATA AIG Team
  • Last Updated On :
  • 04/06/2024

Picture this: you are all packed for your trip to Sydney and waiting for your taxi to arrive, only to find out your flight is delayed. What should you do about the non-refundable connecting flight and accommodation bookings, as your scheduled arrival has changed?

In such situations, a travel insurance policy acts as a necessary safety cushion that extends financial support to help you claim for flight delays, cancellations, and many more unforeseen circumstances that can hinder your travel plans.

However, even with multiple benefits, people still have many unanswered travel insurance misconceptions. Let us discuss some common myths about travel insurance below:

Common Travel Insurance Myths and Facts

Myth 1 - All Overseas Travel Insurance Policies are the Same

Misconception - One of the most common travel insurance myths is that all insurance policies are the same. Often, people believe there is only one type of travel insurance policy available for everyone.

Fact- However, that is not true. Depending on the type of trip you wish to take, the location, the duration, the number of people travelling together, and any additional travel requirements, you can choose and buy travel insurance from a wide range of options.

Moreover, you can compare different plans and easily choose the one that best suits your travel needs and budget.

Myth 2 - I Travel Safe so I Do Not Need Travel Insurance

Misconception - Another overseas travel insurance myth is that travel insurance is only necessary if you do not travel safely. Maybe you are extra careful and may have taken numerous trips without any unfortunate incident, yet it always pays to be prepared.

Fact- With travel insurance, you will have a financial safety net before and during your trip to ensure that you and your finances are well protected in case of an emergency.

Myth 3 - A Travel Insurance Policy is Very Expensive

Misconception - Many times, people do not research and enquire about travel insurance as they believe it to be an expensive investment. They believe it is out of their budget and will leave them with monetary constraints.

Fact- However, this is not true. The cost of any travel insurance policy depends on various factors. The list includes -

  • Trip destination

  • Trip duration

  • Type of coverage required

  • Number of people travelling with you

  • Additional covers

  • Moreover, even with these factors, there are many affordable travel insurance policies available in the market to ensure there is something for everyone. All you need to do is research and find the one that aligns with your budget.

Myth 4 - Health Insurance is Sufficient

Misconception - More often than not, people believe having health insurance is equivalent to having travel insurance. This is one of those insurance myths that is primarily due to the limited awareness of the benefits of different insurance types.

Fact - You must know that health insurance will not be helpful in case your trip is delayed, your baggage or passport is lost, or you unintentionally cause damage to a third party.

In such cases, travel insurance comes to your rescue with ample coverage for third-party liabilities, lost or damaged baggage, and much more, on top of medical emergencies.

Myth 5 - Airlines Cover for Flight Cancellations, so I Do Not Need Travel Insurance

Misconception - Many travellers think their airlines will reimburse them if they miss their flights due to connecting flight delays or flight cancellations.

Fact - However, most airlines do not reimburse unless it is an unavoidable reason. Moreover, if you have to cancel your flight due to illness or any emergency, you might not get any financial support.

On the other hand, by opting for overseas travel insurance, you get covered for not just flight delays and cancellations but also medical emergencies, loss of personal documents, and much more.

Myth 6 - Only International Trips Require Travel Insurance

Misconception - People believe travel insurance is only necessary if you are taking a trip outside India. For domestic travel, there is no risk of travel mishaps as shorter flights, and you can always rush home.

Fact - However, this is not true. Even domestic travel can bring unforeseen events that can disrupt your trip and result in hefty financial expenses.

Thus, it is recommended that you have travel insurance for all domestic and international travels to ensure that you have the necessary financial support in case of emergency or other unavoidable circumstances.

Myth 7 - Every Family Member Needs a Different Plan

Misconception - People planning to travel around with their family members often do not buy travel insurance as they feel every family member requires an individual plan.

Fact - However, that is not the case. When travelling with family members, you can always opt for a family travel insurance policy that will extend coverage for all members and will be the most cost-effective option. Ensure that you do your research and find the most suitable family plan.

Myth 8 - Only Expensive Trips Require Travel Insurance Cover

Misconception - Another common misconception about travel insurance is that it is only valuable and necessary when bought for expensive trips. For instance, people would choose to buy travel insurance only for international trips but not a quick week-long getaway to Goa.

Fact - However, that is not true. Your trip expenses have no impact on the risk of unforeseen circumstances. Therefore, you must buy travel insurance for both a short trip to Goa and for long international trips to travel stress-free.

Myth 9 - Claims for Overseas Travel Insurance are Tedious

Misconception - Many times, people do not buy travel insurance because they do not want to spend too much effort and time on claim procedures. They believe that all insurance providers offer a tedious process.

Fact - This is not the case, especially with digitisation taking over the world. You no longer need to follow a complex paper procedure to file a claim. You can easily do it online from the insurance provider’s website in just a few clicks.

Myth 10 - Travel Insurance Also Cover the Trip Itinerary Activities

Misconception - One of the most common travel insurance misconceptions is that a travel insurance policy will also cover mishaps during trip activities. Simply put, people believe they will receive financial assistance for unexpected events while performing various trip activities.

Fact - This is not true. Travel insurance does cover various unforeseen situations during your trip. However, most travel insurance policies have a set of exclusions, and one recurring one is no coverage for high-risk activities like bungee jumping, extreme sports, scuba diving, etc.

Thus, it is recommended that you always check with your insurance provider and review the policy terms and conditions to assess what kind of trip activities are covered under your plan.

Why Choose Tata AIG Travel Insurance Policy?

Travel insurance is an important investment before your domestic or international trip to ensure you can travel and explore the world with peace of mind while protecting yourself and your finances from unexpected mishaps.

Tata AIG’s overseas travel insurance policies offer extensive coverage for various unforeseen circumstances, such as trip cancellation insurance, medical emergency coverage, loss of passport or checked-in baggage, emergency trip extensions, third-party liabilities, and more.

For maximum convenience, we allow ample customisation flexibility with our overseas travel insurance policy with a wide range of add-ons. Additionally, we offer a user-friendly website to help you compare, buy, and renew travel insurance online. You can also file claims directly from our website in just a few steps.


After understanding the various travel insurance myths and facts, you now know that travel insurance is not just about financial protection. It is also about ensuring stress-free and peaceful trips around India and the world.

A travel insurance policy provides you with a sense of security no matter where you are. It ensures your trip is hassle-free so you can make memories and explore your favourite destinations smoothly.


Is travel insurance mandatory for every international trip?

Even though some countries have specific regulations and mandate travel insurance for visa applications, travel insurance is not mandatory for all international trips. However, given the numerous benefits of overseas travel insurance, purchasing one for your international trip is highly recommended.

What are some standard exclusions for travel insurance plans?

Some standard exclusions include cover for medical illnesses, self-inflicted injuries, medical emergencies after substance consumption, pre-existing conditions, and sexually transmitted diseases.

Name some types of travel insurance policies.

Some of the common types of travel insurance policies include family travel insurance, student travel insurance, domestic travel insurance, international travel insurance, senior citizen travel insurance, single-trip travel insurance, and annual multi-trip travel insurance.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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