Europe, US Trips Surge This Summer: Why Skipping Travel Insurance Could Cost You Lakhs

Travel Insurance

Summer is the prime time for travelling out of India. A report shows that 1 in 2 Indian travellers prefer travelling during this period. Most Indian travellers visit Europe and the US, particularly between the period of April to September.

The boom in travel during this time also led to an increase in the purchase of travel insurance. Expert industry observations point out that insurance is no longer a formality but a necessity for safeguarding against unforeseen circumstances. Thus, if you're planning to visit these destinations during this season, make sure not to avoid purchasing travel insurance.

How many Indians visit Europe and the US?

Compared to the winter season, most Indians visit Europe and the US during the summer season. During summer, around 23-29% of travellers visit Europe between April and September. However, in winter months, the number of travellers decreases to 20-23%. As for the US, around 10-14% of travellers visit during the summer, whereas for winter it is 5-8%.

Travel insurance as per your preference

While travelling to Europe and the US, most people prefer customising their travel insurance policy based on the destination. Whether you're going to a beach or a mountainous region, customising the insurance can play an essential role in saving money in the long run. In case you're visiting tropical areas, get the necessary coverage for food poisoning or emergency evacuations.

People travelling in groups or families often need to be extra careful. Even if one of them is exposed to a risk, the entire group will be affected. Skipping your Europe travel insurance while visiting the destination can eventually lead to significant loss due to unforeseen circumstances. Uncertain situations like loss of personal documents, trip delays and health emergencies will require you to pay lakhs.

Why do you need travel insurance while travelling to the US and Europe?

Once you plan to explore the destination and make memories, you have to be careful about cancellation, delays and baggage loss. Anything can happen during the trip, but with travel insurance, you'll receive maximum coverage.

With trips to the US and Europe surging during the summer, you'll need insurance for the following reasons:

• Trip cancellation or plan change

Unforeseen circumstances can arise, leading to a change of plans. Whether you're sick or something urgent comes up, you'll have to cancel the trip. The flight ticket is non-refundable, which means all your money goes to waste. But if you have insurance, you don't need to worry; coverage will be provided by it.

• Baggage loss adds to the stress.

In international destinations, when you lose your bag, you're losing more than just a bag. Such situations can increase stress. With insurance in place, you'll get coverage that will help you buy what you need.

• Medical bills can cost you a fortune.

What if you accidentally fall sick in the US or Europe? The medical bills will be soaring into the sky. Even a decent hospital can cost you a fortune, often making you lose all your savings. However, when you have an insurance policy, all your treatment costs will be covered.

• Loss of passport

Losing your passport in an international destination can pose severe risks. It adds up to the stress, which can keep you occupied often. Your insurance can help you get a new passport immediately (costs covered)!

What does your travel insurance cover?

Experts suggest that travel insurance is no longer an option for travelling abroad, but 'as essential as packing your bags'. If you've never experienced theft or a medical emergency abroad, you would still consider insurance to be optional, but it's otherwise for the people who have faced this situation.

• It is best to get travel insurance that covers the following:
• Medical emergencies and hospitalisation
• Loss of documentation
• Trip cancellation due to unforeseen scenarios
• Trip delays due to on-ground incidents
• Terrorist attacks in the destination or the home country

There are specific exclusions in travel insurance, too, like pre-existing conditions and political unrest. Experts recommend purchasing an insurance policy whose coverage aligns with the destination you're visiting.

Medical and political risks can cost you lakhs.

Political unrest or unforeseen medical circumstances abroad will require you to pay in lakhs. In recent times, political turmoil has happened frequently across Europe, which can affect your travel plans. Conflicts and protests can hurt your vacation.

If you don't have travel insurance in such scenarios, you'll be on your own, which is a risk that not many want to take. A comprehensive Europe travel insurance offers coverage against these scenarios. Thus, what could have been a major disaster during your trip can be easily ignored as a minor hiccup.

How does a travel insurance plan help?

Your travel insurance plan is your saviour during your trip to the US and Europe. While you know the reasons you should be getting them, here are some of the key ways through which it can help:

• The insurance plan reimburses for meals, accommodation and transport in case of trip cancellation or delays.
• The insurance plan covers hospital expenses, emergency treatments and even air ambulance.
• Prepaid amounts are reimbursed by international travel insurance in case of last-minute plan changes.
• The insurance policy provides cash to purchase basic items, payment for lost items and assistance in replacing or making new documents like passports.
• The Europe travel insurance policy covers hefty costs for evacuation in case of terrorist attacks or political unrest.
• Some international travel insurance can also protect against lawsuits as personal liability coverage.

For Schengen countries, the UAE and Turkey, it is mandatory to have proper travel insurance to get a visa. If you're visiting Schengen countries, you need to show proof of insurance of at least €30,000 for medical costs. So, stay prepared and get your insurance even before applying for the visa to increase the chances of approval.

How to choose the best international travel insurance?

Without a proper travel insurance policy, you're at risk of losing lakhs of rupees. Thus, it is highly crucial to be mindful while choosing the policy. This includes:

• Destination:

Always choose a policy that can help cover the expenses of the destination you're visiting. Some countries have made travel insurance mandatory.

• Trip details:

What type of trip are you going on? Is it adventurous? Just a regular vacation? Your trip can be anything. So, verify your trip details and choose insurance coverage accordingly. You may also customise these to fit your needs.

• Inclusions and exclusions:

Keep an eye out for the inclusions and exclusions of the policy. Your Europe travel insurance must cover trip delays or cancellations, baggage loss, emergency medical needs and baggage delays.

• Coverage:

A trip to Thailand wouldn't cost the same as a trip to Europe. Now, since you're visiting Europe, make sure that the policy you choose matches the expense rate destination. Neither should you get higher coverage nor lower coverage.

Conclusion

Skipping travel insurance should never be an option, especially when you're visiting Europe and the US. Most people visiting these destinations consider their travel insurance policies to be their guaranteed safety net. From minor to enormous difficulties, the insurance can protect you against all, giving you peace of mind. So, go through the coverages, benefits, and premium rates to find the best policy fit before heading out on the trip. After all, it's better to pay a few thousand rupees as a policy premium than lose out on lakhs during the trip.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

Moneycontrol Journalists are not involved in creation of this article.