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Travel is exciting but can come with unexpected hiccups. Many credit cards now offer travel insurance as a built-in benefit, providing financial protection during your trips. For Indian travellers, understanding what these policies cover and how to use them can save money and stress when plans go awry.
Credit card travel insurance is a complimentary or included benefit provided by many credit cards, designed to protect cardholders from financial losses related to travel mishaps. When you book your trip using a credit card with travel insurance included, you gain access to coverage that can reimburse you for issues like trip cancellations, delays, lost baggage, and medical emergencies while travelling.
This insurance typically activates when you pay for your travel expenses—such as flights or hotels—using the credit card that offers the coverage. The scope of coverage varies by card and issuer, so it’s vital to review your card’s specific terms. Generally, this insurance supplements your existing health or travel policies, covering gaps especially when abroad.
Having credit cards with travel insurance is particularly beneficial for frequent travellers, offering peace of mind without the need to buy separate travel insurance policies. However, the level of protection depends on the card type, with premium cards usually offering more comprehensive coverage. https://www.livemint.com/money/personal-finance/what-types-of-travel-insurance-are-offered-through-credit-cards-credit-card-travel-insurance-11729599318078.html
Credit cards with trip insurance usually provide several key types of coverage to safeguard travellers against common travel risks. Here are the typical categories:
Trip Cancellation and Interruption: Reimburses prepaid, non-refundable expenses if you must cancel or cut short your trip due to covered reasons like illness or severe weather. This protects your investment in flights and hotels booked with your card.
Travel Delay: Covers additional costs such as meals, accommodation, and transportation if your trip is delayed for a specified number of hours. This helps manage unexpected expenses during long layovers or cancellations.
Lost or Delayed Baggage: Provides compensation for essential items if your luggage is delayed or for replacement if bags are lost or damaged during transit. This coverage is supplemental to airline liability.
Medical Emergencies: Offers coverage for medical and dental emergencies that arise during travel, including hospital stays and doctor visits. It often acts as a supplement to your primary health insurance, especially abroad.
Travel Accident Insurance: Provides benefits in case of accidental death or dismemberment during travel. This is not a life insurance policy but offers financial support in severe accidents.
Additional Benefits: Some cards also offer coverage for lost travel documents, passport protection, and emergency evacuation if medical treatment is unavailable locally.
These coverages vary widely depending on the credit card issuer and card type, so always check your card’s benefits guide for exact details.
Several Indian credit cards stand out for their comprehensive travel insurance offerings. Here are some recommended options:
Travel Insurance Benefits:
Air Accident Cover: Provides compensation for accidental death during air travel.
Emergency Hospitalisation: Covers medical expenses incurred during travel.
Card Liability: Offers protection against unauthorised transactions.
Travel Insurance Benefits:
Medical Coverage: Covers medical and non-medical emergencies during travel.
Purchase Protection: Insures purchases made with the card.
Credit Shield: Covers outstanding dues in case of disability or demise.
Travel Insurance Benefits:
Purchase Protection: Covers loss or damage to purchases made with the card.
Baggage & Document Loss/Delay: Provides compensation for lost or delayed baggage and documents.
Credit Shield: Covers outstanding dues in case of disability or demise.
Travel Insurance Benefits:
Travel Accident & Medical Insurance: Covers accidental death and medical emergencies during travel.
Delayed Flights & Lost Luggage: Provides compensation for delayed flights and lost luggage.
Travel Insurance Benefits:
Air Accident Insurance: Offers coverage for accidental death during air travel.
Fraud Liability Cover: Provides protection against unauthorised card transactions.
These cards not only offer travel insurance but also come with other travel-related perks like complementary lounge access, concierge services, and reward points on travel expenses.
Note: The benefits of the respective credit cards mentioned above are added with reference to the information available at the time of writing. For the latest updates, please visit the official website.
Activating and claiming your credit card travel insurance is straightforward but requires following specific steps:
Book Your Trip Using the Eligible Credit Card: Ensure all travel expenses (flights, hotels) are paid with the credit card that offers travel insurance.
Inform Your Credit Card Provider: Some issuers require you to notify them of your travel plans to activate coverage. Check your card’s terms for any such requirements.
Keep All Relevant Documents: Retain receipts, tickets, boarding passes, medical reports, and any proof related to the claim event (e.g., delay notifications).
Report the Incident Promptly: Contact your credit card’s insurance provider or customer service as soon as an incident occurs. Early reporting helps smooth claim processing.
Submit a Claim Form: Fill out the claim form provided by your card issuer or insurance administrator, attaching all required documents.
Follow Up: Stay in touch with the insurance provider for updates and provide any additional information if requested.
Receive Reimbursement: Once approved, the insurer will reimburse the eligible expenses as per the policy limits.
Always read your credit card’s travel insurance policy carefully to understand activation conditions, claim deadlines, and documentation requirements.
While credit card travel insurance offers valuable protection, it comes with certain exclusions and limitations. Being aware of these helps avoid surprises:
Pre-Existing Medical Conditions: Most policies exclude coverage for illnesses or conditions existing before the trip unless specifically declared and covered.
Known Events: Claims related to foreseeable events like known storms, epidemics, or travel restrictions imposed by governments are typically not covered.
Dangerous Activities: Injuries from high-risk activities such as extreme sports or hazardous adventures are often excluded.
Travel to Certain Destinations: Some cards exclude coverage for travel to countries or regions under travel advisories or sanctions.
Non-Card Booked Expenses: Only travel expenses charged to the credit card with insurance are covered. Bookings made with other payment methods are excluded.
Claim Limits: Coverage amounts have caps, such as maximum reimbursement limits for baggage loss or medical expenses, which vary by card.
Understanding these fine print details is crucial before relying on credit card travel insurance as your primary protection.
To get the most from your credit card travel insurance, follow these practical tips:
Always Book Travel Fully Using Your Card: This ensures your trip expenses are eligible for coverage.
Notify Your Card Issuer About Travel Plans: Some cards require advance notification to activate insurance benefits.
Keep Emergency Contact Numbers Handy: Save your card issuer’s insurance helpline for quick access during emergencies.
Retain All Receipts and Documentation: Proper paperwork is essential for hassle-free claims.
Understand Your Coverage Limits and Exclusions: Read your card’s insurance policy to avoid uncovered surprises.
Use Your Card for Related Travel Expenses: Some cards cover rental car insurance or lost travel documents if booked with the card.
File Claims Promptly: Timely reporting improves chances of claim approval.
By following these steps, you can confidently travel knowing your credit card’s insurance has your back.
Credit cards with travel insurance provide valuable financial protection against common travel risks such as trip cancellations, delays, lost baggage, and medical emergencies. For Indian travellers, choosing a credit card with travel insurance included can save money and offer peace of mind.
However, it is vital to understand the coverage scope, limitations, and claim process to fully benefit from this perk. With the right card and preparation, you can travel with confidence and security.
Travel insurance on credit cards activates when you book travel using the card. It reimburses expenses for cancellations, delays, medical emergencies, and baggage issues during your trip.
Coverage typically includes trip cancellation, trip delay, lost or delayed baggage, medical emergencies, travel accident insurance, and sometimes rental car protection.
It pays for non-refundable trip costs, additional expenses due to delays, medical treatment abroad, lost baggage replacement, and accidental death or injury benefits.
Many premium credit cards include trip insurance as a complimentary benefit, but coverage varies by card and issuer.
Yes, it offers convenient, cost-effective protection for travellers, especially when you use your card to book trips.
Exclusions often include pre-existing conditions, known events like epidemics, dangerous activities, travel to restricted areas, and expenses not charged to the card.
Cards like HDFC Regalia, Axis Bank Magnus, and SBI Card Elite are some great choices in India for comprehensive travel insurance benefits.
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Posted on 16 May
Roshani Ballal
Academy by Bajaj Markets
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