Once considered optional, travel insurance is now essential. While it remains largely non-mandatory, having the right policy ensures peace of mind, covering unexpected disruptions and financial risks. Lost baggage, trip cancellations, and flight delays are among the most frequent claims. For international travellers, medical emergencies can result in significant expenses, making adequate coverage crucial. Understanding the differences between domestic and international travel insurance helps travellers make informed choices.

Domestic vs. International Coverage

Domestic policies typically cover trip-related issues like flight delays, cancellations, and diversions, with limited medical benefits. Since most travellers in India already have health insurance, domestic travel insurance rarely includes extensive medical coverage.

International policies, on the other hand, provide broader protection, including hospitalisation and emergency evacuation. These policies are vital for overseas trips, where medical expenses can be exorbitant.

However, reading the policy document thoroughly is essential. Travellers should be aware of coverage details, exclusions, and limitations to avoid unexpected expenses, before making a choice.

Several elements influence the cost of travel insurance:

• Age & Health: Older travellers usually pay more. Choosing a plan that covers pre-existing conditions ensures better protection.
• Destination: Traveling to high-risk regions—such as conflict zones—can increase premiums.
• Type of Trip: Business travel and luxury vacations often require specialized, higher-cost coverage.
• Policy Limits: Higher coverage limits lead to higher premiums.
• Deductibles: A higher deductible reduces premiums but increases out-of-pocket costs during claims.
• Trip Duration: Longer trips carry greater risks, leading to higher insurance costs.
• Mode of Travel (for domestic trips): Costs can vary depending on whether you fly, drive, or use public transport.