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Travel Insurance Benefits offered by Credit Cards

  • Author :
  • TATA AIG Team
  • Published on :
  • 03/10/2023

Travelling the world is a thrilling adventure, but along with the excitement, it's essential to consider the unforeseen circumstances that may arise during your journeys. From flight cancellations to lost luggage, unexpected mishaps can quickly turn a dream vacation into a nightmare.

That's where the often-overlooked gem of travel insurance comes into play, and you might be surprised to find it tucked away in your wallet.

Credit cards, those trusty companions of our financial lives, offer more than convenient payment options. Many credit card providers now include travel insurance as an added benefit, providing a safety net that ensures peace of mind while exploring the unknown.

This blog will uncover the valuable traveling insurance benefits credit cards offer. We'll dive into the various coverage options, explore the advantages and limitations, and equip you with the knowledge to make informed decisions regarding protecting your travel investment.

What is Travel Insurance Benefit on a Credit Card?

Travel insurance on a credit card refers to the complimentary insurance coverage provided by certain credit card issuers to cardholders when they use their card to book travel-related expenses. It is an added benefit that can protect travellers against unexpected events and mitigate financial risks associated with their trips.

Typically, travel insurance offered by credit cards covers a range of situations, such as trip cancellations or interruptions, lost or delayed baggage, medical emergencies, accidental death or disability, and even rental car insurance. The extent of coverage and specific benefits can vary depending on the credit card provider and the type of card held.

One of the significant advantages of having travel insurance through a credit card is the convenience and cost savings it offers. Instead of purchasing separate travel insurance policies, cardholders can enjoy the benefits automatically when they use their card to pay for eligible travel expenses. This streamlines the process and eliminates the need for additional expenditures.

However, it's important to understand the terms and conditions of credit cards with insurance benefits provided by the companies. Coverage limits, exclusions, and requirements may vary, and certain trips or activities might not be covered.

For instance, the coverage may not include extreme sports or pre-existing medical conditions. It's crucial to carefully review the policy details and consult with the credit card issuer to clearly understand what is covered and any limitations that may exist.

Typical Credit Card Insurance Coverage Options

Travel insurance on a credit card offers cardholders a layer of protection and peace of mind when travelling. Here are some of the common coverages offered by credit card travel policies:

Trip Cancellation/Interruption Coverage

Credit card travel insurance often provides reimbursement for non-refundable trip expenses if your trip is cancelled or cut short due to covered reasons such as illness, injury, or severe weather conditions.

Lost or Delayed Baggage Coverage

If your checked or carry-on luggage is lost, stolen, or delayed for a specified period, credit card travel insurance can reimburse necessary purchases, such as clothing or toiletries, until your bags are returned.

Emergency Medical and Dental Coverage

Visa card travel insurance may cover emergency medical and dental expenses incurred while travelling, including hospital stays, surgeries, and medications. This coverage is particularly beneficial when travelling internationally, where medical costs can be exorbitant.

Emergency Evacuation and Repatriation Coverage

In case of a medical emergency or if you require transportation to a suitable medical facility, credit card travel insurance can cover the expenses associated with emergency evacuation and repatriation

A List of Travel Protection Credit Card Companies Offering the Benefit of Travel Insurance in India

Several credit card companies in India offer travel insurance as an added benefit to their cardholders. This insurance coverage can provide protection and peace of mind while travelling.

Here is a list of some major credit card companies in India that offer travel insurance, along with a brief explanation of their offerings:

HDFC Bank

HDFC Bank offers travel insurance through credit cards like HDFC Regalia, HDFC Diners Club, and HDFC Infinia. Their coverage includes trip cancellation, lost baggage, medical emergencies, personal accident, and more. The extent of coverage depends on the specific card variant.

ICICI Bank

ICICI Bank provides insurance plans on select credit cards like ICICI Bank Sapphiro, ICICI Bank Emeralde, and ICICI Bank Rubyx. The insurance covers trip cancellation, lost baggage, medical emergencies, personal accident, and other benefits.

Axis Bank

Axis Bank offers travel insurance on its credit cards, such as Axis Bank Miles & More World Credit Card and Axis Bank Privilege Credit Card. The coverage includes trip cancellation, lost baggage, medical expenses, personal accidents, and travel inconvenience benefits.

State Bank of India (SBI)

SBI offers credit card travel insurance coverage on select credit cards like SBI Elite, SBI Prime, and SBI Signature. Their coverage includes trip cancellation, lost baggage, medical emergencies, personal accident, and other travel-related benefits.

Standard Chartered Bank

Standard Chartered Bank offers travel insurance on its credit cards, such as Visa Infinite, Standard Chartered Manhattan Platinum and Standard Chartered Super Value Titanium. The coverage includes trip cancellation, lost baggage, medical emergencies, and personal accident benefits.

Eligibility Criteria to Apply for a Credit Card Travel Insurance Benefit in India

The eligibility criteria can vary slightly between credit card issuers. However, certain general eligibility requirements are typically applicable.

Here are the key factors to consider:

Age

Most credit card issuers require applicants to be at least 18 years old. Some premium cards, such as 21 or 25 years, may have a higher age requirement.

Income

Credit card issuers typically set minimum income criteria for applicants. The income requirement varies depending on the card type and the level of benefits offered. Premium cards often have higher income thresholds.

Employment Status

Credit card issuers usually require applicants to have a steady source of income. Employed individuals, self-employed individuals, and business owners are generally eligible to apply. Some credit cards may also be available for students or individuals with limited income.

Credit History

A good credit history plays a crucial role in credit card approval. Credit card issuers assess an applicant's creditworthiness by considering their credit score, credit report, and repayment history. A higher credit score increases the chances of approval.

Nationality and Residency

Typically, credit cards with travel insurance benefits are available to Indian citizens and resident individuals. Non-resident Indians (NRIs) may have separate credit card options tailored to their needs.

Documentation

Applicants are required to provide supporting documents, such as identity proof (such as PAN card, Aadhaar card, or passport), address proof (such as utility bills or rent agreement), income proof (such as salary slips, bank statements, or income tax returns), and passport-sized photographs.

[Note: It's important to understand that meeting the eligibility criteria does not guarantee credit card approval. The final decision lies with the credit card issuer, which evaluates each application based on their internal policies and risk assessment.]

Also, before applying for a credit card, it's advisable to research various credit card options, compare their features, benefits, and fees, and consider your financial situation and travel needs. This can help you choose a credit card that aligns with your requirements and increases the likelihood of enjoying travel insurance benefits and other perks.

Do I Need to Get Separate Travel Insurance Plan if My Credit Card Already Offers Insurance Coverage?

Many credit cards offer travelling insurance as a complimentary benefit to cardholders. While this may seem convenient, it is important to carefully evaluate the coverage provided and consider whether relying solely on credit card insurance is sufficient for your travel needs. Here are some key points to consider:

Here are some key points to consider:

Understanding Credit Card Insurance Coverage

  • Credit card insurance coverage typically includes trip cancellation or interruption, baggage loss or delay, and sometimes medical expenses.

  • The coverage may be tied to specific conditions, such as using a credit card to pay for the trip or meeting minimum spending requirements.

  • It is crucial to read the terms and conditions of your specific credit card to understand the extent and limitations of the coverage.

Why Should You Consider a Separate Travel Insurance Plan?

  • Standalone travel insurance plans generally offer more extensive coverage, including medical expenses, emergency evacuation, trip delays, personal liability, etc.

  • Credit card insurance coverage may have lower limits and exclusions for specific situations, such as pre-existing conditions or adventure sports.

  • If you have specific needs or require higher coverage limits, a separate travel insurance plan can provide the necessary protection.

  • Separate travel insurance plans allow you to customize the coverage according to your specific travel requirements.

  • You have the flexibility to choose policy terms that align with the duration and nature of your trip, including extensions for longer trips.

  • Relying solely on credit card insurance ties your entire travel protection to your credit card.

  • Issues with your credit card, such as a lost or stolen card or cancellation of the card, can potentially leave you without insurance coverage.

  • In this regard, Tata AIG's travel insurance plans are the best bet due to several key factors. We offer comprehensive coverage options, including medical expenses, flight cancellation insurance, baggage loss, and more. Our plans can be customized to fit specific travel needs, providing flexibility.

Also, with a 24/7 assistance team and a global network of service providers, Tata AIG ensures prompt and reliable support during emergencies. Positive customer feedback and a seamless claims settlement process further establish us as a reliable choice for travellers seeking top-quality travel insurance.

To Sum it Up

Travel insurance benefits offered by credit cards can be a valuable asset for globetrotters. These policies provide a safety net for unforeseen events while travelling abroad, from medical emergencies and trip cancellations to lost luggage and personal liability.

However, when choosing the best travel insurance provider, Tata AIG stands out. With our comprehensive coverage, efficient claims processing, and 24/7 assistance, we offer exceptional travel policies.

Whether you're an occasional traveller or a frequent jet-setter, our plans cater to every need. So, before you embark on your next adventure, don't forget to consider Tata AIG for the best travel insurance experience.

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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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