Growing awareness about the benefits of travel insurance, its easy accessibility and the wide variety of available products is driving the growth of India’s travel insurance market. Expected to expand at a CAGR of 17.65%, the market is expected to surge from $1.5 billion in 2023 to $2.36 billion by 2028. But with such a variety of choices, finding just the right policy for your needs can be difficult.
What Does Travel Insurance Cover?
Travel insurance plans serve two purposes: one allowing the traveller to fund expenses incurred due to a medical emergency during a trip and, second, compensating for any losses suffered due to issues such as delay or cancellation of flights, loss or theft of luggage, and loss of passport. Insurance companies broadly offer two types of plans:
Standalone travel insurance mainly covers medical emergencies and the expenses related to them. It may cover hospitalisation expenses, compensation for partial or total disability, medical evacuation, and other associated expenses.
Bundled travel insurance covers expenses related to medical emergencies as well as financial loss incurred due to other factors, including delay or cancellation of the trip or flights. Losses attributable to loss of baggage or passport, or theft of the passenger’s belongings are also covered under bundled plans. Such plans cater to the insurance needs of different types of travellers with varying insurance requirements.
Since bundled travel insurance offers wider coverage for financial risks, it saves a lot of time and effort for travellers. By ensuring coverage for all potential risks under one policy, you also gain peace of mind and a sense of security, so that you enjoy their trip to the fullest without worrying about the impact of things going wrong.
Standalone vs. Bundled Travel Insurance
Standalone travel insurance plans usually cover fewer risks and are no-frills policies. On the other hand, comprehensive travel insurance policies offer greater coverage, which comes at an additional cost. Here’s a look at the key differences for an informed choice.
Standalone Travel Insurance | Bundled Travel Insurance | |
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Which Policy Should You Choose?
Some of the other factors that you should keep in mind while choosing between standalone and bundled travel insurance plans are whether you are travelling alone or with family and whether the trip is for business purposes or leisure.
Solo travellers may be more interested in medical insurance. After all, falling ill without friends or family close by is stressful enough without the added financial tension. So, they could consider standalone travel insurance that offer health benefits.
A group of family members with small kids should ensure that the travel insurance covers medical treatment for children too.
Business travellers are more concerned about the impact of delays or cancellations of flights or hotel bookings. So, check for such coverage, including baggage loss, theft and damage.
People travelling with important business documents or equipment should also consider policies that cover the loss or theft of documents and equipment during the travel.
To conclude, bundled travel insurance offers more benefits but tends to be costlier than standalone plans. So, keep your budget in mind and your risk-bearing capacity for an informed choice. Many insurance companies allow their customers to customise policies by choosing the benefits they are looking for. Do your research before finalising a plan.
