Travel insurance for overseas trips: Check whether you have THESE covered before you start

Travel insurance is a must for those who are undertaking an overseas trip. While travel insurance is easily available and can be bought in a jiffy for affordable premiums, you should make sure that it is comprehensive enough to cover all unforeseen expenses. A good travel insurance should provide adequate cover for OPD (Outpatient Department) expenses, pre-existing diseases, medical emergencies and adventure sports. Here is a primer on the features you should have in your international travel insurance.

Choose a plan with OPD cover

When you are buying an international travel insurance, make sure that it has OPD cover. This is because a large number of travel insurance policies do not cover OPD expenses. This will result in you paying the bills for ailments that do not require hospitalisation. Even simple OPD treatments in overseas locations will be quite expensive. Several insurers provide OPD cover as an add-on option. By choosing it, you will be able to save on huge medical bills.

Ensure coverage for adventure sports

If you are going on an international vacation, the chances of your participation in adventure sporting activities are quite high. Trying out different sporting activities that involve quite a bit of adventure is something that travellers love to do on such trips. Most travel insurance plans do not cover expenses incurred in treating injuries that arise out of such activities.

But you can cover adventure sports through an ‘add-on’ option by paying extra premium. Such travel insurance will cover treatment expenses of an insured participating in adventure sports activities, subject to policy terms and conditions.

“Most travel insurance plans exclude adventure sports by default,” says Vivek Chaturvedi, CMO and Head of Direct Sales, Go Digit General Insurance. “Consider buying this cover if you intend to do adventure activities abroad. It covers hospitalization or OPD treatment due to recreational activities like skydiving, scuba diving, skiing, paragliding, and more—provided the activity doesn’t exceed one day and isn’t done professionally or as the sole purpose of travel, activities above 4000 meters altitude or deep-sea diving beyond 5 meters are typically excluded.”

Incidentally, insurers also provide coverage for cruise vacations. The insurance covers cruise travel, protection for related risks such as medical emergencies on the cruise and cruise interruption.

Ensure adequate cover for pre-existing diseases

You have to ensure adequate coverage for pre-existing diseases (PED) when you are travelling to overseas destinations by paying extra premium. You have disclosed PED truthfully to avoid claim denials. Many insurers limit coverage for PED at 5%–10% of the sum insured. Chronic and terminal illnesses are usually excluded. Some policies also impose sub-limits on medical coverage based on age, especially for travellers who are above 50 years of age.

“These can often be waived by paying a higher premium. Keep in mind that the coverage offered, policy terms, coverage inclusions and exclusions may vary from policy to policy and insurer to insurer. Check all the details carefully before buying a plan that best suits your needs,” Chaturvedi says.

Cover for emergencies

You have to choose a travel insurance policy that covers medical emergencies. “Sudden illnesses or accidents abroad can be life-threatening and expensive. Travel insurance covers hospitalization, treatment, and emergency evacuation, including air ambulance services if needed,” Chaturvedi says.

Inclusions in travel insurance

Here is a list of standard inclusions in international travel insurance. You have to make sure that your policy has all these covered.

• Emergency hospitalisation cover: This covers unforeseen situation that requires hospitalisation including IPD (In-Patient Department) and OPD.
• Hospitalisation due to accident: This covers the insured person from medical expenses arising out of accidents.
• Trip delay, cancellation, or interruption: If your trip is delayed, cancelled or interrupted, it would be a huge disappointment and would lead to financial losses. Coverage includes missed flight connections, bounced bookings, trip cancellations, and trip abandonment—ensuring both financial and logistical support during travel.
• Loss of travel documents: This covers expenses that you incur due to the loss of important travel documents such as passport or international driving license.
• Loss of checked-in baggage: Loss of luggage can ruin any trip. This feature covers the losses for baggage delays or loss by reimbursing the incurred costs.
• Cover for natural disasters: Natural disasters can completely spoil your vacation. This feature provides coverage for losses due to trip cancellation, extension and postponement due to natural disasters.
• Home building & contents cover: While traveling abroad, your unoccupied home in India may be vulnerable to theft, burglary, or natural disasters. Some travel insurance plans extend coverage to protect your home and its contents during your absence.
• Personal liability: This feature covers legal and financial consequences that arise if the traveller unintentionally causes harm to a third party or damages property—such as in a rented accommodation or at a store.

Travel insurance is more than just a visa requirement. It is a vital safety net for international travellers providing coverage for medical emergencies, accidents, personal liability and trip disruptions among others that has the potential to lead to significant financial losses in case of a claim, especially in high-cost countries like the U.S, Canada, and parts of Europe.

While choosing a travel plan, you have to consider your destination and duration. It is better to choose coverage based on the cost of living and medical expenses of the destination. For example, a $50,000 cover may be enough for a short trip to Thailand, but a $250,000–$500000 plan is advisable for longer stays in the U.S. or Canada.

Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.