Explained: The importance of travel insurance in a shrinking world

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travelling abroad. Let us discuss what it covers and when one should buy it. Though the word “Travel Insurance" suggests that expenses related to travel only are covered but travel insurance covers more than that.

It also covers your hospitalisation while you are abroad which is important because the health insurance purchased by you in India generally covers your hospitalisation in India only. Some of the countries make the purchase of travel insurance a precondition before the issuance of a visa. Looking at the cost of medical treatments in some developed countries, it is a prerequisite for you to buy adequate travel insurance to safeguard yourself against a big hole in your pocket.

Generally, travel insurance covers your loss of checked-in baggage, the cost of treatment, and hospitalisation abroad. Though most of the insurers do not cover your pre-existing disease a few of the insurers cover the treatment in case of life-threatening diseases. This also covers loss suffered due to delay or cancellation of your flights.

It also covers any emergency arising out of delay or cancellation of flights. Since international travel insurance is supposed to cover majorly your hospitalisation, you should take into account the cost of hospitalisation in the country you are travelling to. Moreover, as it covers the loss of your checked-in luggage, you should take into account the value of your valuable belongings like your camera, laptop, etc.

which you are carrying with you. You also need to factor in the cost of ticketing as well as hotel stay in case of delay or cancellation of flights. In case you are a frequent flier, you can buy a Multi-Trip travel insurance that covers you for all future trips taken within a specific period,