Ensure your summer holiday is protected by understanding the ins and outs of your travel insurance policy, including coverage for cancellations, medical emergencies and baggage loss.
Key Points
- Travel insurance policies typically exclude losses arising from war or armed conflict but may cover disruptions due to airline operations or weather.
- Missed connection benefits usually apply to delays caused by operational, technical or weather-related issues, with insurers often requiring a minimum four-hour gap between flights.
- Travel insurance may offer cashless treatment for hospitalisation abroad depending on the insurer's network hospitals and pre-approval.
- Baggage loss or delay is typically covered when caused by the airline but coverage for cash and valuables is often excluded or capped.
The conflict in West Asia is affecting travel plans. Airlines have been rerouting flights that pass through Gulf hubs, leading to longer travel times.
“While most services are operating, the risk of delays and missed connections has increased,” says Rakesh Kaul, chief distribution officer, retail business, Bajaj General Insurance.
Indians travelling abroad this summer need to acquaint themselves with what their travel insurance policy covers and what it does not.
Understanding trip cancellation coverage
Travel policies typically exclude losses arising directly from war or armed conflict. “Disruptions due to airline operations, weather or technical issues are usually covered as long as they are not directly caused by conflict,” says Kaul.
If flights are delayed or cancelled due to operational changes, insurance may cover incidental costs such as extra stay, meals and alternative travel arrangements within limits.
Trip cancellations due to travel restrictions or orders issued by a government or aviation authority are typically covered, provided these were not known when the policy was purchased.
Navigating missed connections and travel advisories
Missed connection benefits typically apply when delays arise from operational, technical or weather-related issues.
“If you choose to travel despite being aware of an ongoing war and your flight is cancelled, leading to a missed connection, the claim is unlikely to be covered,” says Chandrakant Said, vice president, consumer underwriting, Tata AIG General Insurance.
Insurers usually require a minimum four-hour gap between connecting flights.
Kaul says insurance may cover rebooking and accommodation in eligible cases.
The insurance policy covers additional expenses such as accommodation, meals, local transport and other incidentals.
Look out for travel advisories from the government.
“Travel insurance typically excludes cover for travel to countries against which India has imposed travel restrictions,” says Said.
Trip cancellation claim
For a trip cancellation claim, insurers typically require proof of bookings and payments, along with cancellation confirmations.
“Supporting documents depend on the reason for cancellation -- medical reports or a doctor’s certificate for illness, a death certificate for family emergencies or employer communication if relevant. Additionally, a filled claim form, policy copy, Know Your Customer (KYC) documents, and bank details are needed,” says Manas Kapoor, business head, travel insurance, Policybazaar.
Flexible bookings alone do not provide adequate protection against war-related disruptions, since they may come with conditions and offer limited refunds. “The best approach is to pair flexible bookings with an insurance plan,” says Kapoor.
Understanding flight delay
Travel insurance typically pays for flight delays only if the delay exceeds a minimum threshold, usually of three to six hours, and is caused by a covered reason.
Compensation may be a fixed amount for each delay period or reimbursement for expenses such as meals or accommodation, depending on policy terms.
“No payout is made if the delay is due to exclusions such as war, civil unrest, pre-known strikes or prior notification. Benefits are also subject to caps on time and amount,” says Kapoor.
Hospitalisation cover
If a traveller falls ill abroad and needs hospitalisation, travel insurance policies offer cashless treatment if the policyholder informs the insurer or its third-party administrator (TPA) before admission.
Cashless settlement depends on whether the insurer has tie-ups with network hospitals in the destination. It is likely to be available in major cities.
“To check coverage, refer to the policy document, the insurer’s list of network hospitals or the websites of global assistance partners,” says Kapoor.
The traveller may need to pay upfront and later claim reimbursement if prior intimation is not possible or the hospital is outside the network.
Pre-approval from the insurer or TPA is crucial.
“Delays in intimation may reduce the claim payout. Typically, expenses beyond a specified limit (for example, US$1,000) require prior approval even if the claim is filed after returning home,” says Shilpa Arora, co-founder and chief operating officer, Insurance Samadhan.
For planned or elective treatment, lack of approval can result in claim denial.
Travel insurance covers emergency medical evacuation. “It may pay for medical repatriation to India and reimburse non-refundable expenses for cutting the trip short,” says Arora.
Special considerations for senior citizens
Many health policies have age-based caps and sub-limits for senior citizens. They should watch for co-payments, room rent limits, and exclusions on modern treatments.
As for pre-existing medical conditions, standard policies often exclude them. Limited coverage may be offered in the case of a life-threatening emergency. However, the illness should have been stable for a defined period before travel.
Lost/Delayed baggage coverage
Travel insurance typically covers baggage loss or delay when it is caused by the airline. For delays, cover applies only after a minimum waiting period, usually six to 12 hours, and allows reimbursement for essential purchases up to specified limits.
“In case of permanent loss, compensation is provided based on item value, subject to sub-limits and exclusions. A Property Irregularity Report (PIR) from the airline is usually required. Coverage for cash and valuables is often excluded or capped,” says Adhil Shetty, CEO, Bankbazaar.
He informs that baggage that customs or government authorities detain or confiscate is generally not covered.
Finally, reading the policy document is essential. “Trigger thresholds, payout limits and benefits can differ across policies. Review triggers, waiting periods and exclusions before travel,” says Shetty.
© 2026