Travel insurance is a type of insurance that reimburses a financial loss that may occur due to the risksassociated with travel. Travel insurance tries to help you enjoy your holiday without worrying about the risks attached to travel. While traditionally travel insurance was mostly used to cover trips outside the country, there are now insurance plans for domestic travels as well. A few risks that maybe covered by your travel insurance policy are -

·Baggage loss
·Flight and hotel cancellations and rescheduling
·Medical expenses
·Document (passport) loss
A travel insurance policy can provide you with cover for combination of above given risks.

b) Domestic Travelers

Traditionally, travel insurance was synonymous only with foreign or overseas travel. That is logical given than medical and emergency expenses while travelling overseas can be expensive. However, in the last few years people are slowly seeing the benefits of opting for travel insurance even when they are travelling domestically.

In the past 5 years or so, there has been a steady rise in domestic travel insurance in India. Travel insurance market in India is a budding market which is growing at about 15% each year. India is a diverse country and destinations can include cities, beaches, mountains and even deserts. For example – Sara had made plans to travel within India and it did not even strike her to purchase travel insurance. However, her friend explained that the trekking and camping trip she has planned in north India may have more travel risks as compared to a trip to Singapore. This was when she opted to buy a domestic travel insurance policy.

c) International Travelers

Travelling is usually an enjoyable experience, but foreign travel can be challenging because of the additional risks that you face. A new country can be intimidating, and the cost and risks may be completely different from our expectations. Here are the few interesting facts that may demonstrate the need for travel insurance:

·In countries like Singapore, US, Netherlands and Canada hospital beds cost around ₹ 20,000 to ₹ 40,000 for a night

·In the year 2015, 18% of flights were delayed while around 2% of flights were cancelled
·Around 8 bags per 1000 were misplaced in 2014
All these facts and figures will keep changing but they also show that there are certain risks and costs involved with foreign travel. Hence, taking insurance for foreign travels may be logical.

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