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Why do you need travel insurance?

12 Feb 2023 0 COMMENT

An individual spends a lot of time planning a trip, whether a vacation or a business trip. The trip's itinerary is meticulously planned, from flight and hotel bookings to sightseeing. Although many travellers take an active interest in exploring new places within the country or abroad, it is equally important to consider the risks one might face. Unforeseen events can happen anytime, and it would be more troublesome if one is travelling. Travel insurance is a handy tool in order to travel without any worries.

Travel insurance is a type of insurance policy which covers the various risks one might have to face while travelling. This policy provides financial protection from damage or loss to one’s self or property while travelling. Loss of baggage, flight cancellations, loss of passport, medical emergencies, etc., are covered in this policy.

Is travel insurance mandatory?

Many travellers often wonder if travel insurance is mandatory. While not every country has made it mandatory to have travel insurance, many countries consider travel insurance as important as the visa.

Any individual planning a trip shouldn’t buy travel insurance only because it is mandatory, rather it should be made to get protection and the various benefits it offers while travelling. Countries like USA, UAE and the Schengen countries need travel insurance. One must check the insurance requirements of a country before planning a trip.

What does travel insurance cover?

Here are many things that are covered under a travel insurance policy

Medical emergencies

If there’s a medical emergency while travelling abroad, a travel insurance policy can take care of the financial costs that may arise from it. Meeting an accident or falling sick abroad can lead to high medical bills. Travel insurance ensures financial protection against it.

Loss of baggage

There are times when a traveller might end up losing or damaging their baggage while on a tour. The bag contains various possessions and valuables. Having travel insurance can protect and support an individual in the case of such an event. It also covers the theft of bags or personal belongings while travelling.

Loss of personal documents

It is critical to have your personal documents, like your passport, ID cards etc., with you while travelling. These documents are valuable, and losing them can create a lot of trouble and stress for the traveller. A travel insurance plan can help you recover the costs that you might incur due to the loss or damage of these documents.

Flight delays or cancellations

If a flight is delayed or cancelled, it can throw off the entire plans and bookings that a tourist has made. In such cases, travel insurance helps compensate for the monetary damages, meals and stay arrangements.

Features and benefits of travel insurance

In these uncertain times, the importance of travel insurance is more than ever. Check out some of the benefits that a travel insurance policy offers:

Protection from losses while travelling

When an individual travels, there might be a possibility of losing personal things, including luggage or documents. These possessions are very important to a traveller, and having travel insurance can provide the needed support and financial protection in the case of a loss.

Protection from a change in itinerary

At times, flights or hotel bookings might get delayed or cancelled. In such a scenario, the traveller has to reschedule and cancel bookings that they have made. A travel insurance policy helps by providing the financial compensation needed for the stay, meals or rescheduling costs. Travel insurance can also help in case an entire trip gets cancelled.

Medical expenses

As stated earlier, one of the major features of travel insurance is that it provides financial protection from medical emergencies. In case an individual falls sick or meets with an accident while travelling, the travel insurance plan can help in taking care of the medical bills and treatment costs, providing peace of mind to both the traveller and their loved ones.

Personal liability coverage

In case a traveler injures or causes damage to a third person, especially during international travel, the insurance company can help by providing the necessary compensation.

In conclusion, it is highly advisable to have a travel insurance policy and remain insured while travelling, even if it is not mandated by the country you are visiting. One can never plan or know when an unforeseen event can strike, but having insurance can give some safety while travelling.


Do I buy travel insurance before or after booking?

You can purchase travel insurance before or after the booking. It is advised to purchase it after the booking as you can know the total costs of the trip and if the insurance covers it.

What costs are covered by travel insurance?

Travel insurance covers the costs that might arise due to medical emergencies, loss of personal property, documents and cancellation or delaying of flights. There are other costs covered too, depending on the policy.

Can I buy travel insurance the day before my trip?

Yes, you can buy a travel insurance policy a day before your trip though it is advised to make the purchase slightly in advance.

Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.

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