Planning an international vacation? Here's why you need travel insurance
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An upcoming international vacation is always a reason to rejoice. You get to visit faraway lands, explore new cultures and check off a thing or two on your bucket list. Needless to say, it takes a great deal of planning (and packing) to get yourself and your family ready for a trip abroad. 

You may have to book your flight tickets weeks or months in advance. You’ll need to do a fair bit of research on the weather, so you have the appropriate accessories and clothing necessary. And you will even have to prepare an itinerary for your international vacation. 

Despite all this meticulous planning, it is often easy to overlook one extremely essential aspect. And that is travel insurance. 

An international travel insurance plan is not just beneficial. It is a necessity when you are planning to take a vacation abroad. Check out the top 5 reasons you need travel insurance.

  • You may lose your baggage 

Imagine this. You are travelling to a particularly cold destination. And you’ve packed all the essentials in your check-in baggage, including a nice set of jackets and boots, some thermal wear and a pair of snug gloves. But when you eventually arrive at your destination, you are greeted by some unwelcome news - your baggage is either delayed or is lost in transit. Not only is this inconvenient, at best, but it also causes a financial loss.

A travel insurance plan can help you recover the loss, thanks to the reimbursement that your insurer pays out in case of a loss of or a delay in your baggage. This can help you purchase all the essential items that were lost or delayed in transit, without spending for them out of your own pocket. 

  • You or your loved ones may fall sick abroad

A vacation may be the most inconvenient time to fall ill. But it can definitely happen. You or someone in your family may be sick unexpectedly. Or worse, you could be involved in an accident that requires immediate medical attention. Depending on the country you are in, the costs of treating a medical emergency could be extremely steep. And since it would be an unplanned expense, you may have to use up quite a bit of your savings. 

With a travel insurance plan, however, you need not worry about this, because your insurer will take care of these medical costs for you. The best travel insurance policies even offer cashless settlements in case of hospitalisation, so you do not have to spend out of pocket. 

  • Your flight could be delayed or cancelled

A delay in your main flight or your connecting flight could put your vacation plans in jeopardy. Worse still, a cancelled flight could mean that you may have to put off your vacation. It also undoubtedly results in a financial loss, since international flight tickets can be quite expensive. In addition to this, the cost of accommodations you may have booked for your trip may also not be refundable. 

But a travel insurance plan can change all of these unfortunate situations for the better. In case your flight is postponed, your insurance provider will offer financial benefits to compensate for any additional expenses you may incur due to the delay. Or, if your flight has been cancelled, your insurer will reimburse the cost of the flight tickets and hotel accommodations.

  • You may face an unexpected personal liability

Due to an accident or any other unforeseen development, you may unintentionally injure a third party or cause some damage to another person’s property. In such situations, you will have to compensate the third party for the costs of repairing the damage or treating the injuries. In an unfamiliar territory abroad, a scenario like this could not only be emotionally stressful, but will also result in unplanned financial liabilities.

If you have a travel insurance plan that covers such personal liabilities, your insurance provider will cover these liabilities on your behalf. So, you need not worry about these financial outlays, and you can continue to enjoy your vacation as planned. 

  • It may be a mandatory requirement

Some countries also include travel insurance as a mandatory requirement for travellers visiting from abroad. If you are visiting one such destination without a valid travel insurance plan, you may be stopped from entering the country at the immigration counter. Furthermore, countries like the United Kingdom, Greece, Austria, Spain, Portugal, Germany, France, Belgium, Netherlands and Luxembourg require proof of travel insurance while issuing a visa itself.

So, in case you plan to visit any of these international travel destinations, you will have to purchase a travel insurance policy to meet the mandatory requirements in place. This, apart from the many benefits outlined above, is another pressing reason to get your international vacation adequately covered. 

Summing up

The great thing about a travel insurance plan is that you only need to purchase it as and when you need it. So, if you are planning an international vacation sometime soon, make sure that you allocate a part of your budget to securing your trip with insurance. 

The premium will depend on the destination you are travelling to, the duration of your trip, the number of people travelling and their age or general health. Before you make your purchase, remember to check the inclusions and exclusions of the policy thoroughly. 



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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.