Monday, Oct 03, 2022
Outlook Money

4 Ways How Missing Out On A Travel Insurance Could Cost You Dearly While Travelling Abroad

If you are travelling overseas, not having a travel insurance could cost you dearly. However, weigh all the pros and cons before opting for one

Lack of a travel insurance policy can prove expensive abroad.

Flights, hotels, activities, rental cars – these are the first things we tend to look out for and book on priority while planning for a vacation overseas. 

However, there is another more important item we are all likely to miss out on while preparing for our holiday: Travel insurance. 

People often tend to forget about travel insurance as they generally do not think the need of it until they actually need it. 

Says Sanjiv Bajaj, joint chairman and managing director, Bajaj Capital: “There has been an increase in the number of Indians dying abroad every year. Healthcare is quite expensive these days, particularly when you’re traveling abroad. Thus, getting hospitalised abroad while travelling could really burn a hole in your pocket, unless you have a comprehensive travel insurance policy.”

Hence, whether you are on a domestic or an international trip, if you don’t opt for the right travel insurance, you could be inviting trouble. Also, it is predicted that Indian travellers will be spending nearly $40.7 billion on international travel by 2025. 

So, here are five ways in which not having a travel insurance policy could cost you dearly, especially on your international trips.

Medical emergencies and death: Being prepared for events that could result in death should be the last thing on anyone’s mind when planning a trip overseas. However, it is critical to consider the possibility of medical emergencies and unexpected bills. A comprehensive travel insurance policy with emergency evacuation coverage will also cover the transportation cost of the body back home in the event of the insured’s death in a foreign land. This travel insurance coverage is advantageous for those who want a comprehensive approach in insuring their trip. While there are measures and systems in place to make the reclamation process easier, the task of repatriation can become excruciating due to differences in religious, legal, and political policies in place between countries.

“The insurance policy pays for reasonable expenses incurred in transporting the insured’s body from the place of death to India. Among the expenses covered are embalming, cremation, coffins, and transportation. Companies that provide insurance to the bereaved family and next-of-kin are also assisted by assistance service providers with the road or air repatriation of the mortal remains,” says Bajaj. 

Flight cancellation or delay: If you have the right travel insurance policy, then you could be reimbursed or refunded at least a part of the amount in case of any flight cancellation or delay, in accordance with the terms and conditions of the policy. If you don’t have a proper insurance policy, you would lose out on this privilege, and suffer a loss. 

Fraudulent charges: If you lose your debit or credit card while on vacation, and you start getting texts that someone is using it, you would naturally be scared about it. But when you are armed with a good travel insurance policy, you don’t face the risk of losing that money. Your money could be refunded to you through your stolen payment cards for up to 12 hours prior to your reporting of the incident. 

Loss of passport, baggage, or other important travel documents: You are really in trouble when you lose your passport, baggage, or other important travel documents, while on a trip. It would leave you in stress and in a complete mess. 

But if you have a good travel insurance policy, then in case of loss of passport, you would be reimbursed the amount of acquiring a new or a duplicate one. If your belongings go missing, you would be compensated for your loss for up to an approved amount. In case your baggage gets delayed, you could file a claim as well. This could help you until you get back your baggage.