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What Does Travel Insurance Really Cover? Here’s What Travellers Need To Know In 2025
Whether it’s a volcano erupting in Indonesia, a flight stuck on the tarmac in Mumbai due to monsoon floods, or a lost passport in Rome, here's how travel insurance can save your trip and your wallet
What Does Travel Insurance Really Cover? Here’s What Travellers Need To Know In 2025. Credit: Canva
The tragic crash of Air India Flight 171, which claimed the lives of 241 people and left just one survivor, is set to become India’s costliest aviation insurance case to date. The death toll may rise further, as the aircraft also struck the BJ Medical College doctors’ hostel near Ahmedabad, resulting in additional casualties on the ground. While Tata Group has announced ex-gratia payments to victims’ families, there is more that you need to understand about personal travel insurance as well.
Whether it's volcanic eruptions in Indonesia, wildfires in Greece, monsoon flooding in India, and even tornado alerts in the U.S, comprehensive insurance can ensure you have peace of mind when you’re travelling.
Why Travel Insurance Has Become Essential In 2025
With extreme weather events, natural disasters, strikes, and technical failures becoming increasingly common, travel plans are more unpredictable than ever. The post-pandemic surge in travel demand has also exposed the fragility of the global travel infrastructure. Airlines are stretched, flights are overbooked, and even a minor hiccup can derail your itinerary. Unless, you opt for comprehensive travel insurance.
What Does Travel Insurance Typically Cover?
While coverage can vary depending on the insurer and the plan, most standard travel insurance policies cover the following:
Trip Cancellation or Interruption
If you fall ill, lose a family member, or face a natural disaster like a volcanic eruption that affects your destination, your non-refundable bookings (like flights or hotels) can be reimbursed.
Medical Emergencies Abroad
If you fall ill or get injured during your trip, your insurance can cover hospitalisation, outpatient treatment, and sometimes even medical evacuation.
Flight Delays and Missed Connections
If your flight is delayed for more than a certain number of hours (usually 6–12 hours), your policy can reimburse meals, hotels, and transportation. If a delay causes you to miss a connecting flight, the policy often covers rebooking costs.
Lost, Delayed, or Damaged Baggage
If your bags take a vacation without you, you may be reimbursed for emergency essentials like clothes, toiletries, and even medications. Permanent losses are also typically compensated up to a limit.
Natural Disasters and Weather-Related Events
If a typhoon hits your beach destination or an earthquake strikes just before your trek, you can cancel or cut your trip short and claim reimbursements. According to the website of PolicyBazaar: “Natural disasters refer to unpredictable natural or weather events that are beyond the control of mankind. For example, earthquakes, floods, cyclones, typhoons, etc. Hence, a travel insurance policy provides coverage for any damages or injuries sustained by the traveller during a trip resulting in monetary losses.”
Emergency Evacuation
Whether it’s political unrest, a tsunami warning, or a serious injury in a remote location, emergency evacuation can run into lakhs of rupees. A robust policy covers helicopter airlifts, ambulances, and relocation to the nearest hospital or safe location.
Accidental Death Insurance
Accidental death travel insurance typically covers death resulting from accidents, such as transportation mishaps, natural disasters, or unforeseen circumstances. The policy may also include coverage for medical expenses incurred prior to the traveller’s death. It has sub sections such as Accidental Death Benefit, Common Carrier Accident, Accidental Dismemberment and Repatriation of Remains.
24/7 Global Assistance
Most insurance companies now offer 24/7 helplines for emergencies abroad—be it losing your passport in Paris, or needing a hospital in Ho Chi Minh City.
Note: Cancellations by tour operators in package trips are not recoverable under most policies
What It Doesn't Always Cover
While the benefits are extensive, travel insurance does have exclusions and fine print. Be cautious about:- Pre-existing medical conditions (unless declared and specifically covered)
- Adventure sports injuries (you may need a special adventure cover add on)
- Claims without documentation (you need to keep proof—receipts, reports, photos)
- Voluntary cancellations (you can’t just change your mind and expect a refund)
- War-like situations: Travel insurance often comes with clear exclusions when it comes to politically volatile situations. For instance, Bajaj Allianz specifies on its website that its overseas travel policies do not cover "losses due to war, rebellion, or terrorism." Similarly, SBI General Insurance states that claims arising from "war, invasion, acts of a foreign enemy, hostilities (whether war is declared or not), civil war, rebellion, revolution, insurrection, or military or usurped power" are not admissible.
Do You Need Insurance For Domestic Travel?
In India, domestic travel insurance is gaining popularity. Airlines offer optional travel insurance during booking. It covers cancellations, missed connections, and personal accident insurance, even within India. This is especially helpful given the increase in weather disruptions and airline strikes.
Mallika Bhagat author
Mallika Bhagat dreams about travelling permanently and writing occasionally. For now, she writes extensively on travel, lifestyle and culture in her r...View More
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