Before you fly out: How to choose the right international travel insurance

Tips to pick the right international travel insurance and avoid costly surprises abroad

Planning an international trip involves a long checklist, from flights and accommodation to sightseeing plans. Amid all this, buying the right international travel insurance is often overlooked, but it can be crucial in handling unexpected situations abroad. 

Common mistakes to avoid

Vishal Gupta, chief executive officer at PhonePe Insurance, points out some frequent missteps by Indian travellers:

 

Inadequate sum insured

 

“For Schengen countries, the €30,000 requirement is a minimum for visa purposes, not for safety. In high-cost medical markets like the US or Europe, even a single day in an ICU can exhaust the sum insured, leaving travellers to bear costs running into lakhs,” he explains.

 

 

Non-disclosure of pre-existing diseases (PED) 

Gupta adds, “Many travellers hide conditions like diabetes or hypertension to save on premium. If hospitalisation occurs abroad and the condition is linked to an undeclared PED, the claim can be rejected immediately.”

 

Overlooking non-medical coverage

 

Travel insurance also covers inconveniences like flight delays, cancellations, and lost baggage.

Gupta notes, “If a flight is delayed by six hours, travellers could claim hotel stay and meals. Similarly, lost baggage claims require verified airline documentation; without it, insurers may reject the claim.”

 

Ignoring sub-limits 

A sub-limit is a cap on specific expenses such as room rent or surgery charges.

 

“Even with a high sum insured, sub-limits can significantly reduce claim payouts,” Gupta cautions.

 

Choosing the right coverage for your trip

 

The sum insured and coverage features should reflect your destination, travel purpose, and duration:

 

Destination matters: Gupta recommends, “Check the average medical costs at your destination. The US and Europe have high medical costs, while SE Asia or the Middle East is comparatively lower, though still significant.” 

Purpose of travel: Business travellers should prioritise flight delay, missed connections, and laptop/device cover, whereas leisure travellers may need adventure sports, car rental, or cruise coverage.

 

Senior citizens: “For seniors, full PED disclosure is critical. Cashless hospitalisation is essential, and the sum insured should be higher even for lower-cost regions,” Gupta advises.

 

Watch the fine print

Carefully read exclusions and policy clauses:

 

Adventure sports limitations: Coverage often applies only for leisure activities under licensed supervision. Professional events with prize money may not be included.

 

Deductibles and sub-limits: A deductible is the fixed amount you pay before insurance kicks in. Gupta highlights, “Travellers are often unaware that claims below the deductible will not be reimbursed.”

 

International travel insurance is not just a formality, it can save travellers from steep medical bills, trip disruptions, and logistical headaches abroad. Understanding the sum insured, policy inclusions, and exclusions, while choosing a plan aligned with your travel style, ensures better protection and peace of mind on every journey.