Types of Travel Insurance

The travel insurance definition is simple. As the name suggests, it is a special kind of insurance that provides financial protection to the policyholder against travel-related contingencies or mishaps. In other words, a travel insurance plan safeguards the policyholder from any unforeseen financial damage during a trip. Travel insurance is a must-have for those planning a trip out of their home. It can be a family vacation, business trip, honeymoon, or an adventurous tour with friends.

Below are some of the losses a travel insurance plan covers:

• Loss of baggage or delay in arriving

• Theft of passport during an abroad trip

• Flight cancellations or delays

• Hospitalisation due to medical emergencies or accidents during a trip

• Losses due to plane hijack

• Emergency evacuation

• Missing connecting or departure flight

• Bounced hotel or airline booking

Apart from these, there are several other risks and contingencies covered by a travel insurance plan depending upon its type. Many types of travel insurance coverages are available in India to cater to the different requirements of travellers.

Each traveller has unique travel insurance requirements. For example, senior citizen travellers prefer to have a large sum insured for medical emergencies. Similarly, an adventure geek prefers a travel insurance policy with personal accident coverage.

To cater to the different requirements of different travellers, insurance companies in India offer various types of travel insurance plans. Let’s have a look at them:

• Domestic travel insurance

It’s a very common misconception among people that travel insurance policies cover only trips abroad. As a result, several people neglect to buy travel insurance for domestic trips. However, several insurance companies offer the best domestic travel insurance plans that cover local trips within the country.

Such plans are similar to an international travel insurance plan, just that their scope of coverage is limited within the boundaries of India. With a domestic travel insurance plan in your kitty, you can travel anywhere in India, and all your unforeseen expenses will be covered. These may include missed flights or trains, medical emergencies due to an accident, etc.

• International travel insurance

We have talked about domestic travel insurance in the first point, and now, we will talk about an international travel insurance plan. Both these types of travel insurance plans are almost similar, except for the scope of their coverage. While domestic travel insurance plans cover only domestic trips, i.e., within the Indian boundaries, an international travel insurance plan covers foreign trips as well.

During an international trip, you can come across several contingencies, such as loss of baggage and/or passport, flight cancellations, medical emergencies, emergency evacuations, etc. An international travel insurance plan covers all expenses incurred by you during such situations and also helps you to come out of them.

• Individual travel insurance

Many people prefer to travel solo for a business trip or vacation. An individual travel insurance plan is designed for such people. It offers various benefits along with regular travel insurance perks, such as coverage for medical emergencies, repatriation of mortal remains in the case of unfortunate death of the policyholder during a trip, dental care expenses following an accident, and loss of baggage and/or passport, etc.

As compared to other travel insurance plans, individual travel insurance plans are usually cheaper and offer all necessary benefits.

• Family travel insurance

Just like an individual travel insurance plan provides coverage for individuals, a family travel insurance plan covers an entire family or group. This is the reason why these plans are also known as group travel insurance plans. The coverage provided by family travel insurance plans is almost similar to individual travel insurance plans. However, the premiums for group travel insurance plans are higher. They mainly depend upon the number of people and the destination for the trip. However, buying a family travel insurance plan is always more affordable than buying individual travel plans for every family member.

• Student travel insurance

As the name suggests, student travel insurance plans are designed specifically for students who are planning to go out on an educational trip. These plans provide some unique benefits that aren’t offered by other types of travel insurance plans, such as loss of passport and/or VISA, loss of a laptop or other education-related belongings, study interruptions, emergency evacuations, and the extension of VISA.

Student travel insurance plans come with longer validities that can range between 30 days to a few years. As a student, you can choose the validity of your policy as per the duration of your stay. For example, if you’re planning to go abroad for a two-year Master's course, you can buy a student travel insurance plan with two-year validity.

• Single or multi-trip travel insurance

If you’re someone who does not travel more than once or twice in a year, you should opt for single-trip travel insurance plans for every trip. However, if you travel frequently, say once or twice every month, buying a multi-trip travel insurance plan would be more beneficial for you.

Multi-trip travel insurance plans are cheaper compared to multiple single-trip plans. They also eliminate the hassles of buying a travel insurance plan every time you need to go out on a trip.

If you are planning a trip, we suggest you visit the Tata AIG website to purchase your travel insurance. With Tata AIG travel insurance policies, you can rest assured of optimum cover against loss of luggage, delayed baggage, hospitalisation expenses due to illnesses, theft of passports, etc. You can compare plans and choose a plan as per your suitability.

It’s prudent to procure a travel insurance plan every time you go out of your house on a trip or vacation. In some countries, travel insurance is a mandatory requirement for Visa approval. However, with different types of travel insurance plans available in the market, it’s crucial to select the right product as per your requirements. You should compare travel insurance offerings from different insurers to make the right choice.