The Hidden Trap in ‘Free’ Travel Insurance with Holiday Packages

Travelling abroad is exciting — whether it’s for a vacation, business trip, studies, or medical treatment. But with international travel comes unexpected risks like medical emergencies, flight delays, baggage loss, or even passport misplacement.

That’s where an International Travel Insurance Policy becomes essential. It provides financial protection and 24×7 assistance when you’re in a foreign country, helping you handle medical costs, travel disruptions, and personal liabilities without stress.

Many countries now require travel insurance as a visa condition, and even if it’s not mandatory, having one ensures peace of mind throughout your journey.

International Travel Insurance is a specialized insurance policy that provides financial protection, emergency support, and coverage for unexpected situations when you are traveling outside your home country. It ensures that your trip — whether for leisure, business, education, or medical reasons — remains secure and stress-free, even when things don’t go as planned.

The Hidden Trap: “Free” Travel Insurance with Packages

Travel agents often bundle “complimentary” insurance with holiday packages. But here’s what they don’t tell you:

1. It’s Never Free – The cost is hidden in your package price.
2. Bare Minimum Coverage – Usually ₹50,000-₹1 lakh. A single day’s hospitalization in the USA costs ₹5-10 lakhs!
3. Pre-Existing Diseases NOT Covered – Have diabetes, BP, thyroid, or heart condition? You’re NOT covered. This is the biggest trap for Indians.
4. Reimbursement Hassle – You pay lakhs upfront → collect bills → file claim after returning → wait 60+ days → often get rejected. No cashless facility.
5. Limited Benefits – Focuses on baggage/delays, not medical emergencies (which matter most).
6. No Customization – One basic policy for everyone, regardless of age, health, or destination.
7. Hidden Commissions – Agents earn 20-40% commission, not necessarily giving you the best policy.

Package vs Standalone: Quick Comparison

Feature	Package Insurance	Quality Standalone Policy
Medical Coverage	₹50K – ₹1L	₹5L – ₹50L+
Pre-existing Disease	❌ Not Covered	✅ Can be covered
Payment	Reimbursement (you pay first)	Cashless at network hospitals
Claim Process	Through agent (complicated)	Direct with insurer

1. Emergency Medical Expenses : If you fall sick or meet with an accident abroad, the policy pays for hospital, doctor, and medicine bills.
2. Trip Cancellation : If your trip is cancelled due to illness, death in the family, or natural disaster, you get a refund for non-refundable bookings.
3. Emergency Hospitalization : Covers in-patient treatment, room rent, ICU charges, surgery, and tests if you’re admitted to a hospital.
4. Repatriation of Mortal Remains : In case of death, the insurer pays for returning your body to India or arranging local cremation.
5. Medical Evacuation (Shifting to another hospital): If needed, the policy covers shifting you to a better hospital or back to India using air ambulance.
6. Personal Accident Cover : you or your family receive a lump sum amount in case of accidental death or permanent disability abroad.
7. Trip Interruption : if you have to return home mid-trip due to an emergency, the unused trip costs and return travel are covered.
8. Baggage Theft or Damage : If your suitcase or bags are stolen, lost, or damaged while traveling, the insurance will pay for the value of your items.
9. Loss of Passport : Covers the cost of applying for a new passport or temporary travel documents.

👨‍🎓 Students going abroad for education
👨‍👩‍👧‍👦 Families on international holidays
🏥 Patients seeking treatment overseas
💼 Business travelers
✈️ Frequent flyers (annual multi-trip plans)
👴 Senior citizens visiting family abroad

Real Scenario: Why It Matters

Situation: You have a heart attack in Dubai. Hospital bill: ₹15 lakhs.

With Package Insurance:
❌ “Pre-existing condition not covered”
❌ You pay ₹15 lakhs from your pocket

With Standalone Policy:
✅ Cashless treatment approved
✅ Hospital gets paid directly
✅ You pay ₹0

Don’t Risk Your Trip with Wrong Insurance

A standalone travel insurance policy costs very less but can save you from a ₹10-20 lakh crisis abroad.

The problem? Most people don’t know which policy actually covers their needs, destination, and health conditions.

FAQ

– Is travel insurance mandatory for a Schengen visa?
Answer: Yes
– Can I buy travel insurance after booking my tickets?
Answer: Yes
– What if I have diabetes – can I still get covered?
Answer: Yes
– Can I use this Insurance for claim in India?
Answer: No you have to buy different personal health insurance – Check importance of health insurance (Health Insurance)

Planning to travel soon? Don’t book your flight until your insurance is sorted. DM me today for a free policy review — I’ll ensure you’re properly covered before you board.

-Kaushal Bagrodia
💬 DM me for free consultation
📱 Call/WhatsApp: 7738434373