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Understanding these differences can help travellers choose the right coverage and avoid financial stress during their journeys.
Rise in travel insurance claims post-pandemic
According to Vivek Chaturvedi, CMO and Head of Direct Sales at Go Digit General Insurance, there has been a noticeable increase in travel-related insurance claims.
“Post the pandemic, we have seen a significant increase in traveller awareness about the importance of travel insurance. As a result, more travellers are opting for policies that provide comprehensive coverage, including medical emergencies and trip-related disruptions such as checked-in baggage delays and flight cancellations,” he said.
The most common claims include delayed baggage, trip cancellations, and flight delays.
As travellers understand their coverage better, they are filing claims more frequently.
Financial implications of travel mishaps
Travel mishaps can have serious financial repercussions, particularly during international trips.
Lost luggage, for instance, can be costly and stressful.
“A lost bag often contains more than just clothes; it may also hold essential items like medication, cosmetics, and valuables like currency and jewellery. These items may be difficult or expensive to replace in a foreign country,” Chaturvedi noted.
Insurance plans such as Digit’s Double Secure Plan provide a fixed compensation amount for lost baggage, though some insurers may require receipts to validate the claim.
However, high-value items like jewellery may not be separately covered.
Flight cancellations can result in extended stays, leading to additional accommodation and food expenses.
“A trip extension or trip delay cover under travel insurance can provide financial relief and reimburse these expenses,” Chaturvedi added.
Medical emergencies, especially abroad, can be extremely expensive.
Chaturvedi cited a recent example: “Treating a broken arm in Australia can cost upwards of ₹10-12 lakh. A comprehensive travel insurance policy with adequate medical coverage can provide essential protection in such situations.”
Key differences between domestic and international travel insurance
Domestic and international travel insurance policies differ significantly in terms of coverage.
Domestic travel insurance primarily covers trip-related issues such as cancellations, flight delays, and diversions. Medical coverage is often minimal since most travellers already have health insurance in India.
International travel insurance, on the other hand, offers broader protection, particularly for medical emergencies.
“Since local health insurance policies may not be valid abroad, international travel insurance provides essential medical and accidental coverage with higher limits, reflecting the increased cost of medical treatment in foreign countries,” Chaturvedi explained.
Other important covers under international travel insurance include:
- Loss of passport coverage
- Personal liability and bail bond coverage
- Financial emergency cash assistance
Claim settlement timelines
The time taken to process travel insurance claims varies based on the nature of the claim.
“Trip-related claims, such as common carrier delays and baggage delays, can often be settled within a few hours of notification,” Chaturvedi stated.
However, medical reimbursement claims, which require extensive documentation and verification, typically take around 6-7 days to process after all necessary documents are submitted.
