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Home > Money > Insurance Last Updated: Sep 10th 2022

Do I need to take Travel Insurance?

While Travel Insurance is some what new to mainstream India, with ever increasing uncertainties due to COVID-19 and beyond, get to know why you need to take travel insurance whether traveling domestic or international? Get to know more on reasons for taking one and what risks it cover?

Do I need to take Travel Insurance?

When we travel, we make plans a lot in advance. We book our tickets, our accommodation, pack required things and so on. But one of the things which many of us do not is to buy travel insurance, or even if we do that comes as an afterthought. In this article we will answer the question- Do I need to take travel insurance?

For that we need to understand how travel insurance works. Travel insurance can protect you from various risks associated with travel. You can buy travel insurance both for domestic and foreign travel. Here are some of the risks that travel insurance covers

Medical / Accident Cover

If you incur any expenses due to a medical emergency or an accident during the trip, travel insurance will cover it to the specified limit. This covers both in-patient and out-patient hospitalization expenses. Some policies also provide a daily cash allowance in case you are hospitalized.

In case you are required to be evacuated on an emergency basis to the nearest town or to your hometown, the cost of it is also covered. The cost of medical treatment can really hurt when you are in a foreign country where your domestic health cover will not be valid, so travel insurance is important.

However, there are other things that can go wrong during travel and travel insurance covers those risks as well.

Flight Cancellations and Delays

Flight cancellations and delays may happen, especially due to bad weather and sometimes you may miss a connecting flight. Travel insurance covers you for expenses you incur during such cases, for flights that originate from another city other than your own. This would include cost of re-scheduling flights and also cost of lodging and food for the period of delay.

Loss of Passport

When traveling abroad, loss of passport can lead to unnecessary hassles and expenses. Foreign travel insurance covers these expenses and gives you peace of mind.

Lost or Delay of Baggage

Sometimes, especially when traveling abroad, your check-in luggage may get lost or delayed. Most airlines will compensate for such occurrence. Travel insurance also covers for these.

Let us say, when traveling, your check-in baggage is delayed. In that case the insurance will give you an amount which you can use to buy your essentials till you receive your baggage. In case of loss of baggage, you will be covered for the cost of baggage.

Personal Liability

This is covered by most insurers as well. Suppose there is an accidental damage to a third-party property, and you have to pay for it, travel insurance will cover you. This could be important when you are traveling with kids.

Hotel Extension

Sometimes, your traveling companion may be hospitalized. In such cases, you may need to extend your travel. Travel insurance covers cost of extended stay in such cases.

Common Myths

Now, that we have seen what travel insurance covers, we will look at some of the common myths regarding travel insurance.

A. Travel Time

People assume that they do not need travel insurance if the trip time is small. However, you are exposed to travel risks irrespective of the length of your trip. So travel insurance is a must.

B. Travel Insurance plans are expensive

If you look at what it covers, the premium for travel insurance plans is actually very nominal. It makes sense to pay the premium costs, if you consider how much money it will save you in case of any of the incidents mentioned above.

C. They are difficult to get

Buying travel insurance is a hassle-free process as it can be done very quickly online.


Considering all the factors, one can say that travel insurance is an absolute necessity when traveling to protect you against travel uncertainties and make your travel hassle-free.

Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.