Need a Schengen visa? A guide to the travel insurance you must have

More Indians are heading to Europe this year—and if a Schengen trip is on your calendar too, you’ll need travel insurance before applying for a visa.

 

“Travellers should remember that travel insurance is more than just a formality—it’s a smart, practical safeguard that provides financial protection and peace of mind when unexpected disruptions occur,” said Meet Kapadia, head of travel insurance at Policybazaar.com.

 

Insurance is mandatory for Schengen visa applicants

 

Travel insurance is a requirement for anyone applying for a Schengen visa. It must cover at least €30,000 in medical expenses, evacuation, and repatriation, according to Schengen rules.

 

 

“The regulation requires coverage of at least 30,000 euros for medical emergencies, evacuation, and repatriation. But the real value of travel insurance goes far beyond a visa formality,” said Alok Kumar Agarwal, managing director and CEO at Zurich Kotak General Insurance.

 

“Many travellers visit Schengen countries for adventure sports, medical treatments, or cultural exploration—each of which carries unique risks,” he said.

 

India was the third-highest source of Schengen visa applications

 

India submitted 1.1 million Schengen visa applications in 2024, according to data from the European Commission released on May 16. Of these, 936,748 were approved and 165,266 were refused, putting India’s rejection rate at 15%.

 

Insurance providers say travel insurance can reduce the financial burden in case of trip disruptions.

 

“From sudden illnesses and injuries to last-minute cancellations or missed connecting flights, a travel insurance policy can help travellers steer through financial setbacks. It also protects against natural events like floods or earthquakes at the traveller’s home or destination,” said Kapadia.

 

What travel insurance usually covers

 

According to insurers, here’s what a standard Schengen travel insurance policy often includes:

 

Emergency medical treatment and hospitalisation

Personal accident coverage

Loss or delay of baggage

Trip delays or cancellations

Passport loss or theft

24/7 emergency assistance

 

“For example, if a traveller misses a connecting flight due to a delay or their luggage is lost in transit, travel insurance can help cover the costs and inconveniences,” said Agarwal.

 

“Even events back home—like a burglary while the insured is abroad—can be covered under certain plans,” he added.

 

Read the fine print

 

There are exclusions to be aware of. “Normal wear and tear, negligence, and certain high-value items like fine jewellery or collectibles may not be covered unless specified,” said Agarwal.

 

Kapadia said travellers heading to politically unstable regions should check whether their policy includes coverage for those risks. “Many standard policies exclude war-like situations or political unrest. It’s best to opt for extended coverage if you’re travelling to higher-risk areas.”

 

Travel insurance demand rising with outbound travel

 

According to Policybazaar, Schengen-bound travel from India rose by 18.95% in the first quarter of 2025 compared to the same period last year. Germany, France and Switzerland continue to be among the top five destinations.

 

More Indians are now choosing insurance plans with higher cover and add-on features. In 2023, with a rejection rate of 15.7%, Indian travellers lost nearly €12.1 million (₹109 crore) in non-refundable visa fees. About 20% now opt for insurance riders that refund this fee if a visa is denied.

 

Other trends include:

 

< 62% of Indian travellers now opt for insurance coverage of $250,000 or more

< Senior citizens prefer policies with cover of over $500,000 for hospitalisation

< Comprehensive plans covering pre-existing conditions and evacuation are more popular

 

“With 62% of travellers now choosing $250,000+ coverage, it’s evident that customers are prioritising peace of mind over cost,” Kapadia said.

 

A look at some available plans

 

ICICI Lombard offers a plan called Trip Secure Plus – Gold, which costs ₹1,299 (including GST) and provides coverage of USD 250,000.

 

Tata AIG has the Schengen Silver Plus plan, priced at ₹1,074. The exact sum insured was not listed.

 

Care Health provides the Explore Gold plan for ₹1,119, and Reliance offers the Value Care policy for ₹1,656.

 

Feature comparisons across plans

 

Some of these plans cover medical expenses up to $250,000 or even $300,000, with a typical deductible of $100. Baggage loss cover ranges from $300 to $750 depending on the plan, with some offering no deductible and others applying a $50 one.

 

For loss of passport, most plans offer $250 to $300 in coverage, with deductibles between $25 and $50. Trip cancellation benefits vary from $500 to $1,000, and are sometimes provided without a deductible.

 

In terms of personal accident coverage, ICICI Lombard offers $15,000, while Tata AIG quotes ₹15 lakh. Some other plans may not include this benefit at all.