Travel insurance provides financial protection against unexpected events during a trip. Depending on the policy, it can cover expenses arising from accidental hospitalization, personal accidents, trip disruptions, and other specified travel-related risks.
Keep reading to find out more about what travel insurance covers and its policy exclusions.
Key Takeaways
- IRDAI specifies standard domestic travel plan variants (Plans A to E) based on distance and transport mode, with Plan E covering multi-modal domestic trips (round-trip journey) for up to 30 days, whereas Plans A–D cover single-way journeys for specific modes (road, rail, air).
- Domestic travel policies may include sub-limits and room-rent caps (e.g., 2% of Sum Insured for room rent, 4% for ICU per day) on accidental hospitalization claims, while specific additional benefits like trip cancellation carry fixed deductibles. Check the policy document for details.
- Pre-existing medical conditions may require an add-on, with pricing varying by insurer.
- GST on individual, family, and student travel insurance policies purchased or renewed on or after September 22, 2025, is 0%, down from the earlier 18%.
- Policy exclusions vary by insurer, so always check the full policy wording.
What is Travel Insurance?
Travel insurance may be structured as an indemnity or benefit-based policy, depending on the cover, designed to mitigate financial losses incurred during a trip.
This includes situations such as flight disruptions, missing baggage, or medical emergencies abroad where standard domestic health insurance may provide limited or no coverage.
Premiums are driven by factors such as the traveller's age, destination, trip duration, and chosen level of coverage.
Why do You Need Travel Insurance?
Medical emergencies occurring away from home often incur substantial healthcare costs.
Similarly, unforeseen illnesses, accidents, or family emergencies can force last-minute trip cancellations when tour operators or airlines enforce strict non-refundable windows.
While baggage loss can cause significant inconvenience and, depending on the belongings involved, material financial loss, insurers offer compensation for lost belongings and essential replacement expenses. Geopolitical events, civil unrest, or natural disasters can trigger sudden evacuation orders or widespread flight groundings, leaving stranded travellers exposed to inflated last-minute travel costs, risks that a comprehensive policy helps offset.
Domestic Travel Cover Under IRDAI's Standard Product
To bridge the gap in domestic travel protection, the IRDAI issued guidelines for a Standard Domestic Travel Insurance Product, commonly known under industry frameworks as Bharat Yatra Suraksha, offered by general and health insurers.
The product features 5 variants structured around the mode of transport and journey distance:
| Plan | Mode of Travel | Distance Limit | Trip Coverage | Tenure |
| Plan A | Taxi, cab or bus | Up to 100 km | Single journey, origin to destination | Duration of the journey |
| Plan B | Taxi, cab or bus | Beyond 100 km | Single journey, origin to destination | Duration of the journey |
| Plan C | Reserved train travel | No limit | Single journey, origin to destination | Duration of the journey |
| Plan D | Flight | No limit | Single journey, origin to destination | Duration of the journey |
| Plan E | Any mode, or a combination | No limit | Return journey, origin to destination and back | Up to 30 days |
Core Structural Terms
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Waiting Period: Under the standard domestic travel policy, coverage typically begins from the start of the journey as defined in the policy, subject to the specified period of insurance for each plan variant.
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Age Eligibility: Eligibility criteria, including minimum and maximum entry age, vary by insurer and plan. Check the policy wording before purchase. Under IRDAI guidelines for the standard domestic product (Bharat Yatra Suraksha), no entry age restrictions (min/max) apply.
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Available to anyone aged 18 or older, with no upper age limit.
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Distribution: Designed primarily for digital acquisition, enabling quick online issuance.
What Does Travel Insurance Cover?
Under the standard domestic framework, accidental death compensation ranges from ₹1 lakh to ₹1 crore, depending on the selected sum insured.
Policies also cover repatriation (bringing back) of mortal remains (ranging from ₹20,000 to ₹1,00,000, excluding Plan A) and permanent total or partial disability. Accidental hospitalisation is included subject to policy-defined sub-limits and room-rent caps.
International travel policies incorporate broader provisions, such as emergency medical evacuations, trip interruptions, missed connections, and rental vehicle damage.
Because inclusions vary significantly between providers, the label "comprehensive" requires careful verification of the underlying document.
Travel Insurance Exclusions
Standard domestic policies exclude hospitalisation resulting from pre-existing medical conditions, self-inflicted injuries, accidents arising from travel on two-wheelers, or where the insured person is travelling in their own motor vehicle rather than as a passenger on a common carrier.
For international policies, common exclusions include trip cancellations initiated by tour operators rather than the traveller, damages arising from war, civil unrest, or similar excluded perils, subject to any applicable insurer-specific add-on or endorsement, adventure sports injuries, and unverified pregnancy complications.
GST and the Cost of Travel Insurance
Individual, family, and student travel insurance policies purchased or renewed on or after September 22, 2025, are exempt from Goods and Services Tax (GST), aligning with broader tax rationalisations on retail life and health lines.
Prior to this shift, premiums attracted an 18% tax rate (for example, raising a base premium of ₹2,000 to ₹2,360 inclusive of tax). Group- or corporate-sponsored travel covers may still be subject to standard GST rates, so confirm at purchase.
Pre-existing medical condition coverage is not automatically included and requires an underwriting review and an extra rider cost, which varies by insurer without a mandated regulatory ceiling. Full disclosure of health history remains vital to protect claim validity.
How to Buy Travel Insurance?
- Choose the Right Plan: Match the variant to your transport mode (road, rail, or domestic air) or choose a broad worldwide/regional policy for international travel.
- Purchase Promptly: Secure coverage shortly after finalising travel bookings to protect against early trip interruption risks.
- Declare Health Details Honestly: Accurately disclose all pre-existing medical histories during onboarding to prevent post-claim rejections.
- Review Policy Documentation: Scrutinise the sum insured, deductibles, sub-limits, and exclusions before executing payment.
Conclusion
While travel insurance cannot prevent logistical disruptions like flight delays or lost belongings, it serves to cushion travellers against severe financial loss. Aligning policy parameters with actual travel itineraries and reading fine-print exclusions ensures the selected coverage performs as expected when unexpected events arise.
