Definition
Travel Insurance
Travel insurance covers financial risks during a trip, including medical emergencies, trip cancellation, lost baggage and flight delays.
For Indians travelling abroad, travel insurance is often mandatory for visas (notably the Schengen area) and covers overseas medical costs, which can be ruinous without cover. Domestic travel policies are also available. Cover can be single-trip or multi-trip annual for frequent travellers.
Key components include emergency medical and evacuation, trip cancellation and curtailment, baggage and passport loss, and personal liability. Pre-existing conditions, adventure sports and travel against medical advice are common exclusions, so reading the wording and declaring health conditions matters.
Related terms
- ExclusionAn exclusion is a specified condition, event or circumstance that an insurance policy does not cover.
- Trip Cancellation CoverTrip cancellation cover reimburses non-refundable travel costs if a trip is cancelled or cut short for covered reasons.
- Emergency Medical EvacuationEmergency medical evacuation cover pays to transport a traveller to the nearest suitable medical facility or back home when local treatment is inadequate.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.