Personal Finance

Going for a trip? Here's why you should get a travel insurance

Updated : January 23, 2020 12:50 PM IST

Benefits like missed connection flights and accidents during travel are some of the other benefits available under travel insurance.

Besides conventional protection services, leading players are now facilitating custom insurance plans for their consumers.

The need for insurance in India is largely triggered by the flight delay and serves to safeguard against any undue hassle.

Nobody wants to have a hostile experience while travelling. However, problems are inevitable and it can slink anytime and destroy an otherwise perfect journey. Tourists cannot be totally invincible to issues, but they can surely ensure to take some curative actions in advance to overcome such issues. Here arises the need for travel insurance, which safeguards travellers against the risks and uncertainties associated with travelling.

Here are key things to know about travel insurance and its growing demand:

Benefits of travel insurance

According to Sunil Gupta, managing director and chief executive officer of Avis India, travel insurance offers additional flexibility and convenience.

"By opting for travel insurance, travellers can protect themselves from the hefty costs that they may have to incur abroad due to an unforeseen change of plans such as flight cancellations/delays and medical emergencies,” he said.

Benefits like missed connection flights and accidents during travel are some of the other benefits available under travel insurance.

"Lost luggage issue is also covered by the insurance policies, so one cannot only book, but also travel with some peace of mind," said Varun Chadha, chief executive officer of TIRUN.

How it helps the travel companies

For travel companies and insurance service providers, these products provide an additional revenue stream and improve the overall customer experience.

"It is a win-win proposition for all stakeholders in the travel value chain," Gupta of Avis India said.

The current scenario

Besides conventional protection services, leading players are now facilitating custom insurance plans for their consumers. The goal is to enhance the travel experience by making travellers feel safer in unfamiliar locations, with 24-hour access to all-round support.

"This focus has sparked synergies between mainstream and niche players, which brands are actively leveraging as a strategic advantage. Now brands cannot only offer cost-efficient and personalised subscription travel-insurance opportunities but also reward repeat customers and drive loyalty," said Dharamveer Singh Chouhan, co-founder and chief executive officer, Zostel.

Is travel insurance mandatory

According to Balu Ramachandran, senior vice president at Cleartrip, insurance is mandatory in many destination countries to cover for any medical emergency,

"This is especially true for developed countries where this cost can be exorbitant," he said.

In India, however, it is not compulsory to have travel insurance when travelling abroad. Although it is always advisable to get it, experts suggest. The need for insurance in India is largely triggered by the flight delay and serves to safeguard against any undue hassle.

Going for a trip? Here's why you should get a travel insurance

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