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Is travel insurance a worthy proposition?


The travelling costs have gone up by almost double in the last few years. Be it rail or air, unless it is booked in advance, it burns a hole in your pocket. Also, don’t forget thousands of other charges that are applied with the ticket cost which make the travelling all the more expensive. If yours is an unplanned trip, you will also have to shell out more on your accommodation. Lastly, add up the sightseeing and airport/railway station transfer costs from hotel or home which is again an expensive deal. In so many expenses, do you even find travel insurance​ a worthy deal. It is quite natural for most of us to think that way as all the other expenses are way too high. Have you wondered whether it is a wise decision to skip buying travel insurance? Let’s know how worthy it is to buy travel insurance.

Unlike auto insurance, travel insurance is a voluntary expense which one makes to stay safe on trips. It is also not like health insurance or life insurance which is a vital need. However, it is quite a necessity considering the unpredictable times today. It covers a specific part of your life i.e. a holiday you take. Most people only consider buying travel insurance while they go abroad but how sensible it is to buy one when you are travelling within the country is the question. The answer is quite subjective as the requirements are different for different people. For some people, it may be really relevant but for others, it is a complete waste of money.
So let’s discuss which side wins.

First, let’s understand what a domestic policy covers –

Medical expenses
In case you meet with an accident at anytime of your trip, your travel insurance policy is liable to pay you a certain pre-specified amount depending on the cover. This is actually not something one would want as most of us are covered under health insurance which is anyway covering our health issues.

Trip cancellation/delay
If you cancel your trip or it gets delayed due to serious and unavoidable reasons, the insurance company pays you the cost of your booked tickets only if they find your reason authentic. However, if you have planned your trip at the last minute itself, there are hardly any chances of trip cancellation or delay. Hence, this benefit is not a real one.

Loss of baggage
This is quite self explanatory. If you lose your baggage or damage it while travelling, the insurer pays you a certain amount for your lost luggage. This is a superb benefit for all those who are carrying multiple high-end gadgets.

By looking at the points, you may feel that it is not that a great idea to buy travel insurance during domestic holidays. However, travel insurance is very useful in a country like India where there are a lot of uncertainties. 

Imagine a situation in the month of December; you are going for a holiday to Europe​. There are chances that your flight may get cancelled due to dense fog. In this event, travel insurance is a saviour. It covers your temporary accommodation expenses and rebooking expenses.

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