Travel Insurance for Indians: What It Really Costs for Domestic and International Trips
Domestic or overseas, a small insurance premium can save you from a very large travel bill.
We Indians are generally very good at planning our holidays.
Flights are booked months in advance. Hotels are compared across three apps. Visa appointments are scheduled. Foreign exchange is calculated to the last rupee.
And then comes the question: “Do I really need travel insurance?”
For an international trip, the answer is usually yes. For domestic travel, it depends on the nature and cost of your trip—but it is increasingly worth considering, particularly for flights, expensive holidays, family travel and trips involving non-refundable bookings.
The good news is that travel insurance in India can be surprisingly inexpensive. Some insurers advertise international cover from roughly ₹16–₹25 per day, while domestic plans can start around ₹25–₹26 per day, depending on the insurer and plan. But the cheapest policy is not necessarily the best policy.
Here is what Indian travellers should know before buying one.
What exactly does travel insurance cover?
Travel insurance is designed to protect you financially against unexpected events during a trip.
Depending on the policy, it can cover:
Emergency medical treatment
Hospitalisation abroad
Emergency medical evacuation
Repatriation in serious cases
Accidental death or disability
Lost or delayed checked-in baggage
Loss of passport
Trip cancellation or interruption
Missed connections
Flight delays
Personal liability
Emergency assistance
Certain pre-existing medical conditions in specified circumstances
The exact coverage, limits, deductibles and exclusions vary considerably between insurers.
IRDAI itself advises travellers to consider overseas travel insurance because medical treatment abroad can be substantially more expensive than in India. It also notes that some countries require travel insurance for visa purposes. (IRDAI)
Domestic Travel Insurance: Is It Worth Buying in India?
Domestic travel insurance is often overlooked.
The view is that, “I have my normal health insurance, so why do I need travel insurance in India?”
The answer is that health insurance and travel insurance are not the same thing.
A domestic travel policy may cover travel-specific problems such as:
Loss of an air or rail ticket
Baggage loss
Baggage delay
Trip interruption
Travel-related accident
Emergency medical expenses, depending on the policy
Personal accident benefits
Certain travel delays or missed connections
For example, Tata AIG currently advertises domestic travel insurance starting at ₹26 per day and offers annual multi-trip options. (Tata AIG)
That means a week-long domestic trip could potentially cost only a few hundred rupees to insure, although the actual quote depends on the policy selected.
When should you consider domestic travel insurance?
It makes more sense when:
1. You are taking an expensive flight
If you are travelling with the family and have paid ₹30,000–₹80,000 or more for air tickets, a relatively small insurance premium may be worthwhile.
2. Your hotel bookings are non-refundable
A cancelled trip can otherwise mean losing money on flights and accommodation.
3. You are travelling with elderly parents
Medical and emergency assistance can become particularly valuable.
4. You are carrying expensive luggage
Check the baggage sub-limits carefully before assuming everything is fully covered.
5. You travel frequently
An annual multi-trip policy may be more convenient than buying separate policies for every journey.
International Travel Insurance: This Is Where It Becomes Really Important
A relatively minor medical problem abroad can result in a substantial bill.
A hospital visit that costs a few thousand rupees in India can cost dramatically more in countries such as the USA, Canada, Switzerland, the UK or parts of Western Europe.
And medical emergencies are not the only problem.
Imagine:
Your baggage doesn't arrive.
Your passport is stolen.
Your connecting flight is missed.
You need emergency evacuation.
A family emergency forces you to return to India.
Your trip is interrupted because of an insured event.
Travel insurance is designed to provide financial protection against such situations.
For certain destinations, insurance is also a visa requirement. For example, Schengen countries require visitors to have travel medical insurance meeting specified minimum requirements; HDFC ERGO notes the commonly applicable minimum of €30,000 for Schengen travel. (HDFC ERGO Insurance)
How Much Does Travel Insurance Cost?
This is where many travellers get confused.
There is no single price for travel insurance.
Your premium can change according to:
Age
Destination
Number of travel days
Sum insured
Type of policy
Number of travellers
Senior-citizen status
Pre-existing medical conditions
Student/business/leisure travel
Adventure-sports cover
Deductible
Optional add-ons
ICICI's travel-insurance information similarly lists destination, duration, age, sum insured, policy type and coverage options among the factors affecting premium. (ICICI Bank)
Current advertised premium examples
The following gives Indian travellers a useful starting point. These are advertised/illustrative figures from insurers' websites and are not like-for-like quotes.
| Insurer | Type | Advertised/illustrative premium | Example/conditions |
|---|---|---|---|
| Tata AIG | Domestic | From ₹26/day | Domestic travel insurance |
| Tata AIG | International | From about ₹22.5/day | Starting premium advertised by insurer |
| Tata AIG | International – USA | About ₹1,300–₹2,100 | 2-week US trip, depending on plan/conditions |
| HDFC ERGO | International | About ₹31/day | Individual aged 37, Asia, 7 days, $50,000 cover; figure stated by insurer as Jan 2024 |
| Care Health Insurance | International/Asia | From ₹16/day | Starting price advertised |
| Care Health Insurance | Asia | About ₹276 for 7 days | 24-year-old, no PED, $10,000 cover |
| Care Health Insurance | Schengen | About ₹361 for 7 days | 24-year-old, no PED, €30,000 cover |
| Care Health Insurance | USA | From ₹40/day | Starting advertised rate |
| Care Health Insurance | Canada | From ₹55/day | Starting advertised rate |
Tata AIG currently advertises international travel insurance from ₹22.5 per day and domestic cover from ₹26 per day; it also gives an illustrative US example of ₹1,300–₹2,100 for a two-week trip. (Tata AIG)
HDFC ERGO currently displays a travel-insurance example of ₹31 per day, without taxes, for an individual aged 37 travelling to Asia for seven days with $50,000 cover. Its website says premiums depend on destination, duration, age, members, plan and sum insured. (HDFC ERGO Insurance)
Care Health Insurance currently advertises international travel insurance from ₹16/day. Its published example for a 24-year-old without pre-existing disease travelling to Asia for seven days with $10,000 cover is approximately ₹276. Its Schengen example is approximately ₹361 for seven days with €30,000 cover. (Care Health Insurance)
Important: Do not compare these numbers as though they represent identical policies. A ₹276 policy with $10,000 medical cover is obviously not equivalent to a policy offering $1 million or $2 million of medical cover.
A Major Change for Indian Travellers: GST
There is another important development that makes current travel-insurance prices different from older articles you may find online.
From 22 September 2025, travel insurance premiums for individual and family travel plans became eligible for 0% GST, according to insurers' current information.
Tata AIG, for example, illustrates a policy with a ₹862 base premium that previously became ₹1,017.16 after 18% GST, whereas under the revised 0% GST treatment the payable amount is ₹862. HDFC ERGO also states that the 18% GST was removed from travel insurance premiums for individual and family plans from 22 September 2025. (Tata AIG)
This is particularly useful when comparing older travel-insurance articles with current quotes.
How Much Cover Should an Indian Traveller Buy?
This is more important than saving ₹100 on the premium.
For Asia
For relatively inexpensive destinations such as Thailand, Malaysia, Singapore, Indonesia or Sri Lanka, don't automatically buy the lowest available medical cover.
A reasonable policy should provide meaningful emergency medical coverage and evacuation benefits.
For Europe
If you are travelling to the Schengen area, make sure the policy satisfies the visa requirement.
But don't stop at the minimum.
A policy merely designed to satisfy the visa requirement may not necessarily provide the level of protection you would personally want.
For the USA and Canada
This is where I would be particularly reluctant to choose a policy simply because it is the cheapest.
Medical treatment can be extraordinarily expensive.
A higher medical sum insured can be worth considerably more than the difference in premium.
For senior citizens
Pay particular attention to:
Age limits
Pre-existing disease clauses
Emergency treatment related to existing conditions
Medical evacuation
Deductibles
Hospitalisation limits
Sub-limits
Exclusions
Senior travellers can face significantly higher premiums because age is one of the factors insurers use to price travel insurance. (HDFC ERGO Insurance)
Pre-existing Diseases:
This is one of the most misunderstood areas of travel insurance.
Having diabetes, hypertension or another existing medical condition does not automatically mean you have no travel insurance.
But it also does not mean every medical expense arising from that condition will be covered.
Policies can have very specific provisions.
Some may cover a pre-existing condition only in a life-threatening emergency, while planned treatment is generally outside the scope of ordinary travel insurance.
Tata AIG, for example, distinguishes emergency coverage from planned medical treatment abroad. (Tata AIG)
Always disclose your medical history accurately.
A cheap premium is not a bargain if a claim is subsequently rejected because relevant information was not disclosed.
What Travel Insurance Usually Does NOT Cover
Never assume that “travel insurance” means everything that goes wrong is covered.
Common exclusions can include:
Deliberate or reckless acts
Alcohol/drug-related incidents
Undeclared pre-existing conditions
Planned medical treatment
Certain adventure sports
Losses arising from excluded circumstances
Unattended baggage
Certain natural or political events
Expenses above policy limits
Claims where required documentation is missing
The exact exclusions depend on the policy.
IRDAI specifically recommends reading the policy document and understanding requirements such as prior approval for medical treatment, extension rules and refund conditions. (IRDAI)
The Most Important Number Isn't the Premium
Suppose two policies cost:
Policy A: ₹500
Policy B: ₹900
It is tempting to buy Policy A.
But what if:
| Feature | Policy A | Policy B |
|---|---|---|
| Medical cover | $50,000 | $500,000 |
| Evacuation | Limited | Higher limit |
| Baggage | ₹30,000 | ₹75,000 |
| Deductible | Higher | Lower |
| Trip cancellation | No | Yes |
| Personal liability | Low | Higher |
The extra ₹400 may be money very well spent.
This is why HDFC ERGO itself cautions travellers not to focus only on premium and to consider coverage and benefits as well. (HDFC ERGO Insurance)
A Checklist Before Buying Travel Insurance
Before paying for a policy, check these 10 things:
1. Medical sum insured
How much will the insurer actually pay?
2. Emergency evacuation
Is evacuation covered separately and what is the limit?
3. Repatriation
What happens if you need to be brought back to India?
4. Pre-existing conditions
Are any emergency situations covered?
5. Deductible
How much must you pay yourself before the insurer pays?
6. Baggage cover
Check the per-item and overall limits.
7. Trip cancellation/interruption
What events qualify?
8. Passport loss
Does the policy cover assistance and associated expenses?
9. Adventure activities
Crucial if you're skiing, scuba diving, trekking or participating in other adventure activities.
10. 24×7 assistance
Make sure you have an international helpline and understand the claim procedure.
Should You Buy Travel Insurance for Every Trip?
A simple rule for Indian travelers would be:
Domestic weekend trip
Optional.
Consider it if your flight/hotel bookings are expensive or non-refundable.
Domestic family holiday
Worth considering.
Especially if travelling by air, with elderly family members or with significant prepaid expenses.
Short trip to Thailand/Singapore/Malaysia
Strongly recommended.
The premium can be only a few hundred rupees, while medical emergencies can cost far more.
Europe/Schengen
Essential.
You may need it for the visa, and you should consider more than the minimum required cover.
USA/Canada
Highly recommended.
Prioritise a high medical sum insured over saving a few hundred rupees on premium.
Senior citizens travelling abroad
Very strongly recommended.
But spend time understanding the medical exclusions and pre-existing-condition provisions.
The Bottom Line
Travel insurance is one of those products where the premium is often tiny compared with the financial risk it protects against.
For an Indian traveller spending ₹1 lakh, ₹2 lakh or ₹5 lakh on an overseas holiday, paying a few hundred or a few thousand rupees for appropriate insurance is usually a sensible part of the travel budget.
But don't buy insurance merely because it is cheap.
Buy the cover you actually need.
Look beyond the headline premium and compare:
Medical cover + evacuation + baggage + cancellation + exclusions + deductible + claim assistance.
And remember: the premium examples in this article are indicative figures advertised by insurers. Your actual quote can be different based on age, destination, duration, medical history, sum insured, policy type and optional covers.
Before buying, check the latest quote and policy wording directly with the insurer. IRDAI maintains information on regulated insurers and travel-insurance products, and it recommends understanding the policy terms before travelling. (IRDAI)
Useful insurer pages
Insurance is subject to policy terms, conditions, exclusions and applicable underwriting. Premiums and benefits can change. This article is intended for general consumer education and should not be treated as insurance advice or a recommendation of any particular insurer.
SUMMARY
✈️ Planning a holiday? Don't let one medical emergency wipe out your travel budget.
Most Indians insure their car, home and health—but often forget to insure the trip itself.
The surprising part? Travel insurance can cost as little as ₹16–₹26 a day on some currently advertised plans, while a serious medical emergency abroad can run into lakhs—or much more.
🇮🇳 Domestic travel
🌏 Thailand, Singapore, Bali & Asia
🇪🇺 Europe & Schengen
🇺🇸 USA & Canada
👴 Senior-citizen travel
How much does travel insurance actually cost? What does it cover? What doesn't it cover? And when is the cheapest policy actually a bad deal?
I've put together a practical guide for Indian travellers, including current premium examples from major insurers and the important things to check before buying.
👉 Read this before your next trip—and especially before travelling abroad.
#TravelInsurance #IndianTravellers #TravelTips #TravelSmart #InternationalTravel #DomesticTravel #TravelIndia #TravelPlanning
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