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Travel Insurance in India: Necessity or Luxury?


Travelling offers individuals the opportunity to explore new destinations, cultures, and cuisines. However, no matter how thoroughly one plans a trip, unforeseen events can disrupt even the best-laid plans. This is where travel insurance comes into play. In India, travel insurance has gained prominence in recent years, but many still debate whether it is a necessity or a luxury. In this article, multipl will analyse the pros and cons of different travel insurance options available in India and their relevance in various travel scenarios.

Types of Travel Insurance in India

1. Domestic Travel Insurance: Domestic travel insurance covers trips within India. While not as common as international travel insurance, this type of insurance typically covers trip cancellations, delays, medical emergencies, and baggage loss.

Pros: Domestic travel insurance is relatively affordable and can be especially useful for frequent travellers within India. It provides peace of mind during trips, particularly when travelling to remote or unfamiliar locations.

Cons: Some may argue that for domestic travel, insurance may seem like an unnecessary expense. However, it can prove invaluable in case of emergencies or unforeseen circumstances.

2. International Travel Insurance: This type of travel insurance is crucial for anyone travelling abroad. It covers many scenarios, including medical emergencies, trip cancellations, loss of passport, baggage delay or loss, and even emergency evacuation.    

Pros: International travel insurance is important for protecting oneself against exorbitant medical bills, which can be financially devastating in a foreign country. It also offers peace of mind in case of unexpected events like trip cancellations or lost baggage.    

Cons: The cost of international travel insurance can be relatively high, especially for extended trips or destinations with high medical expenses. Some travellers may choose to skip insurance, hoping that nothing goes wrong.

3. Student Travel Insurance: Tailored for students studying abroad, this insurance covers health, accidents, and other contingencies. It is mandatory for students studying in many foreign institutions.

Pros: Students can benefit from student travel insurance by having access to healthcare while abroad in case of accidents. It is often a requirement for obtaining a student visa.    

Cons: Some students may feel the insurance cost adds to their already substantial expenses. However, it is an investment in their well-being and security during their educational journey.

4. Senior Citizen Travel Insurance: Designed for older travellers, this insurance covers specific health concerns and contingencies that are more common in older age.    

Pros: Senior citizen travel insurance addresses the health risks that older travellers may face. It provides peace of mind to both seniors and their families.    

Cons: The premiums for senior citizen travel insurance can be relatively high, reflecting the increased likelihood of health issues in older age. Some seniors may find it expensive.

5. Adventure Travel Insurance: Adventure travel insurance is crucial for thrill-seekers embarking on adventurous activities like trekking, scuba diving, or skiing. It provides coverage for injuries sustained during such activities.    

Pros: Adventure travel insurance makes sure that enthusiasts can pursue their passion safely. It covers emergency medical expenses related to adventure sports.    

Cons: The premiums for adventure travel insurance can be higher than standard travel insurance policies due to the increased risk associated with adventurous activities. Some may consider it an added expense, but it’s vital for those engaging in such pursuits.

Relevance of Travel Insurance in Various Scenarios 

Medical Emergencies: One of the most important benefits of travel insurance is its coverage of medical emergencies. In a foreign country, medical expenses can skyrocket, and having insurance can save travellers from financial ruin.

Trip Cancellations: Unforeseen events like sudden illness, natural disasters, or political instability can lead to trip cancellations. Travel insurance helps recover non-refundable expenses, providing financial relief.

Lost or Delayed Baggage: It’s not uncommon for airlines to misplace or delay baggage. Travel insurance compensates travellers for necessary items and clothing when baggage is lost or delayed.

Emergency Evacuation: Emergency evacuation may be necessary in extreme situations like a natural disaster or political unrest. Travel insurance often covers the cost of evacuation to a 

safer location.

Travel Inconveniences: From missed flights to hotel bookings gone wrong, travel insurance can help reimburse expenses incurred due to unexpected inconveniences.

Final Words

Travel insurance in India is not a luxury but a necessity that offers peace of mind and financial protection during domestic and international trips. While some travellers may consider it an added expense, the potential risks and unforeseen events that can occur during travel make it a wise investment. The type of travel insurance required depends on individual circumstances and the nature of the trip, but having some form of coverage is advisable for all travellers. 

About multipl

multipl is the world’s first “Save Now, Buy Later” app, which helps you spendvest through goal-based savings.

Based on the duration, purpose, and risk profile, multipl allocates appropriate assets (mutual funds) in your personalised investment portfolio so you can reach your goal with maximum safety and liquidity. You can create both short-term and long-term savings goals like Gadget Goal, Vacation Goal, Child’s Education Goal, Retirement Savings Goal, Down Payment Savings Goal, and many more. In addition, brands contribute with you to save more towards your goals. To learn more, download the multipl app on Android & iOS now! 

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