Cost of Indian travel insurance coverage for international travel

It may be surprising to note that Indian travel insurance coverage for travelling abroad is not as costly a product as it is perceived to be. (For example for a 35 year old traveller to Asia for a period of 5 days, the insurance premium across 10 products from 5 insurance companies ranges from ₹334 to ₹491 for the whole trip – this is cost of a cup of coffee/burger at the International Airport. And this is for an average coverage of USD $25,000 which is around ₹17,00,000 for Accident & Sickness). While longer duration travel to more developed nations like USA, Europe, UK will have higher premiums, these premiums are related to the cost of medical treatment in those respective countries and they can be very costly for an Indian traveller given the relative weakness of the Indian Rupee ₹. Even for Students going abroad for their studies, the Indian insurers do offer competitively priced International travel insurance for travel abroad plans with comprehensive benefits at a much cheaper premium than what the student will end up shelling out at the University for a similar coverage. Hence it is strongly recommended that every traveller buys an insurance policy before leaving India.

Holiday Travel Insurance cost for Indians going abroad is a fraction of the overall cost of the holiday when one takes into account the Airfare, Hotel Expenses and Tour Package Cost that the traveller would incur on their holiday. It is important that the traveller does not look at Travel Insurance India as a cost but rather a necessity when one travels abroad given the cost of medical treatment in other countries and any unforeseen non medical exigency that can crop up like Passport Loss, Baggage Loss or Delay, Missed Connection or a Flight Delay.

Let’s look at a couple of examples; please note that International travel insurance India premiums will vary depending on Age of the insured, Destination and Duration of Travel and Coverage Sum Insured.

Situation A

• 35 year old going on a 5 day trip to Asia with a coverage of $25,000 (₹17,00,000)
• Package Cost – Airfare ₹20,000, Hotel ₹20,000, Tour Land Package ₹ 10,000 – Total Cost ₹50,000
• Travel Insurance - ₹350 - ₹500 – 1% of the Total Package cost

Situation B

• 35 year old going to USA for 35 days with a coverage of $50,000 (₹34,00,000)
• Package Cost – Airfare ₹60,000, No Hotel and Land Package cost assuming he is visiting family
• Travel Insurance - ₹1,500 - ₹2,800 – 5% of the Total Package cost

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