Decoding Travel Insurance: What does it include?

Travel Insurance has now become a must item on travellers’ check lists. Indeed, it is one of the most crucial requirements along with Visa documents for many countries. While the term ‘Travel Insurance’ may be frequently used in every other guide for travellers, very few know of what this actually means and what are the benefits it offers. So here is a small list to help you grasp the idea of Travel insurance via air.

1. Loss of credit card, passport and other documents

In case of theft or simply a misplacement of important travel documents such as credit card and passport, Travel Insurance will ensure that you are not left abandoned in a foreign country with no money at hand and nowhere to go. The insurance definitely accommodates for your loss; however, fee for the new passport might be separately charged.

2. Flight delay/cancellation

Unexpected events occur when they are meant to be. Cases like bad weather or any political instability can lead to Flight delays or even worse, flight cancellations that can be very frustrating for the traveller to go over the hassle of booking the flight again. However, Flight Delays or cancellations are covered in the travel insurance packages.

3. Trip cancellation

This is similar to the above point but takes a more extreme position where an unexpected event leads to not only postponing but the cancellation of the entire trip. This can be very distressing as a lot of money is involved in the trip. Depending on the package size and the extent of trip cancellation, Travel insurance covers for the trip costs either fully or partially.

4. Loss of checked in luggage

Going to Spain for the first time and you lose your luggage somewhere in the airport. Sounds very unpleasant but worry not because Travel insurance covers this for you! This is a very common issue faced by new travellers. While Loss of checked-in luggage may include big suit cases, it does not include loss of any bag being carried around personally.

5. Personal accidents, medical expenses or disabilities due to accidents

The most basic feature offered by many travel insurance packages include compensation for accidents or even death of the person holding travel insurance. Some of insurance packages may involve kidnapping and hijacking cases as well.

Falling sick while travelling can be terrible especially if you cannot even consult your family doctor for it. Travel Insurance pays for your medical expenses to help you relieve from such stress. Some may cover up to 100% of the medical expenses on your behalf.

Also, where permanent disabilities arise out of unforeseen accidents, travel insurance does provide compensation against it.

6. Emergency Return

Travel Insurance also covers the expenses incurred as a result of emergency return from a foreign country to the home country due to death of a closed relative or any other unfortunate circumstances.

7. Others

There are several other factors that can be incorporated in a travel insurance package to cater to different needs. For instance, religious travel packages might have less features as compared to standard packages. Going to study abroad can have the tuition fees being either fully covered or partially omitted in the insurance package. Customized travel insurance package can incorporate age factor as well. People aged 65 and above might have to pay for additional charges as a result of additional features included in their package.


The 7 points mentioned above provide a brief understanding of holding a travel insurance package. There are several different specialized companies and banks that offer both standard and customized packages as per the ease of the traveler. Hence, travel insurance must be considered as an important element in travelling plans to avoid huge risks and losses.