What Does a Standard Travel Insurance Policy Cover?

Traveling is an exciting experience, but it comes with uncertainties. From flight cancellations to medical emergencies, unexpected events can disrupt your plans and lead to financial losses. That’s where travel insurance comes in—it acts as a safety net, ensuring you’re protected against unforeseen circumstances.

1.Medical Emergencies and Evacuation

 This is arguably the most critical aspect of any travel insurance policy. Imagine falling ill or suffering an injury in a foreign country where you don't speak the language and are unfamiliar with the healthcare system. The costs can be astronomical. For instance, medical expenses abroad can easily go up to ₹5 lakhs per day in developed countries like the USA, where an average heart attack treatment can exceed ₹6 crore.

 A standard policy typically covers:

Emergency medical treatment: Hospitalization, doctor's fees, prescription medications, and emergency dental care for acute conditions.

Medical evacuation: If your medical condition requires transfer to a better-equipped facility or even back to your home country, this incredibly expensive service (which can cost tens of thousands of dollars, or even hundreds of thousands if an air ambulance is needed is often covered.

Repatriation of remains: In the unfortunate event of death, the policy covers the costs of transporting remains back home.

2.Trip Cancellation, Interruption, and Delay 

Life is unpredictable, and sometimes, even the best-laid travel plans can go awry. This is where your travel insurance truly shines.

Trip Cancellation: If you have to cancel your trip before it even begins due to covered reasons (like sudden illness, a natural disaster at your destination, or a family emergency), the policy can reimburse you for non-refundable expenses such as flights, accommodation, and tours. Recent reports from May 2025 indicated a surge in trip cancellations by Indian travelers to certain destinations, with cancellation rates reaching 22% for Turkey and 30% for Azerbaijan due to geopolitical tensions.

Trip Interruption: Should your trip be cut short after it has begun due to a covered event, the policy helps cover the costs of returning home early and compensates for the unused portion of your trip.

Trip Delay: Flight delays are a frustrating reality. Around 37% of flights experienced a minor or major delay in 2024. A standard policy often provides reimbursement for additional expenses incurred due to significant delays, such as extra accommodation, meals, or alternative transportation, often after a specified waiting period (e.g., 6 or 12 hours).

3.Baggage Loss, Delay, and Theft

 The fear of lost luggage is universal among travelers. International flights are five times more likely to lose luggage than domestic flights, and the airline industry spends approximately $2 billion annually managing delayed or lost items.

Lost or Stolen Baggage: Reimbursement for the value of your checked luggage and its contents if permanently lost or stolen.

Delayed Baggage: Coverage for essential items (like toiletries and basic clothing) you need to purchase if your checked luggage is delayed for a specified period (e.g., 6-12 hours).

Theft of Valuables: Coverage for stolen personal belongings, although often with sub-limits for high-value items like electronics or jewelry.

4.Loss of Passport and Important Documents

 Losing your passport while abroad can turn into a bureaucratic nightmare. A standard policy often provides financial assistance and guidance for obtaining an emergency replacement passport, covering associated costs like application fees and travel to the embassy/consulate.

5.Personal Liability

 While less common, accidents can happen. If you accidentally cause injury to a third party or damage their property during your trip, personal liability coverage can protect you from potential legal and financial repercussions.

Travel insurance is more than just a precaution—it’s a necessity for any traveler. Whether it’s medical emergencies, trip cancellations, or lost baggage, having a policy in place ensures peace of mind. Before you embark on your journey, make sure you’re covered—it’s a small investment that can save you from massive financial setbacks.