Three Real Life Cases Where Travel Insurance Saved Monies


In a world where unforeseen events can quickly turn a dream vacation into a nightmare, travel insurance can ensure you don’t have to lose sleep over financial security, especially when you are in a foreign land.  Let us try and understand the possible scenarios one could land in through three real life cases, the invaluable role of travel insurance in safeguarding individuals from unexpected expenses becomes evident.

From medical emergencies to unforeseen mishaps, the tales of Mr. Gupta, Naina, and John illuminate the diverse scenarios where travel insurance stepped in to save both finances and peace of mind. These narratives underscore the importance of prudent preparation and highlight how the foresight to invest in travel insurance can transform potential crises into manageable incidents.

Case I:

Mr. Gupta and his wife planned for a Europe trip for a month. They planned to cover all the major destinations in Europe. They had taken the Schengen visa specifically designed for people visiting the Schengen countries. Once they were done with their ticket and hotel bookings, they were reminded about travel insurance by one of their friend Mr. Naren who worked for an Insurance Broker.

After hearing the advantages of travel insurance and its mandatory requirement, they went for a higher sum Insured as advised by their insurance broker friend. Their travel insurance policy was issued based on their travel plans i.e. 1 month. This cost them about Rs.20,000.

Once in Europe, they visited Germany and France, before visiting Spain. When they checked into their hotel in Spain, they were delighted to explore the location as soon as possible. Unfortunately one day Mrs. Gupta slipped in her hotel room and was unable to walk, she was immediately rushed to a nearby hospital. After detailed examination it was found that she had a fracture in her leg which could take some time to heal.

She was admitted to the hospital and after required treatment, she was discharged from hospital. The hospital bill came around Rs. 2 Lakhs and was settled by Mr. Gupta. When they returned to India, Naren, their broker friend, paid them a visit.

When he got to know about the incident he immediately asked Mr. Gupta to file for a claim under the travel insurance policy. In the ordeal, the Guptas had forgotten about the policy. But after Narens advise, Mr. Gupta filed a claim under travel insurance policy. The claim for hospitalisation was settled.

Case II:

Naina was on her maiden solo trip to the Bahamas when she was attacked and bit by a pig. Bahamas, a picturesque country in the Carribeans is known for its eye fulfilling beaches. The main attraction in the Bahamas is swimming with pigs in the beaches which can be a fun activity for many visitors.

Naina was relaxing near the beach and having her lunch when one pig suddenly attacked her for food. Even though the attack was not fatal, it left Naina bleeding, requiring medical attention. Since it was a stray animal, she didn’t want to take the risk and went to the hospital for treatment.

She was examined by the doctors and given treatment for animal bite and she was discharged on the same day. The hospital charged her around Rs.3 Lakhs for the treatment, and she was surprised by the medical expenses in the Bahamas.

Fortunately, she had taken a travel insurance policy before leaving on her trip to the Bahamas. She raised a claim under her travel insurance policy and submitted the required documents after which the claim was settled within 7 days.

Case III:

Most of us would be of the opinion that we are healthy and would not need insurance that covers medical treatments. But this assumption can prove to be fatal. As it turned out for John. John, a 25 year aged football player was in the best health of his life.

He was on his personal trip to the U.S.A when he fell ill due to food poisoning and was admitted to a hospital nearby. He underwent all the required tests and was discharged after 2 days, following complete recovery. His hospital bill turned out to be Rs. 5 Lakhs which he paid from his own pocket.

Had he taken the travel insurance policy, he would have saved Rs.5 Lakhs as the policy could have taken care of the hospitalisation expenses. In addition to the hospitalisation expenses he was also forced to cut short his trip which resulted in cancellation of pre-booked hotels and airlines. This cancellation also cost him money that a travel insurance policy could have paid for.


  1. <strong>Can I get travel insurance if I have pre-existing diseases?</strong>

    It depends on the severity and type of pre-existing disease. You need to fill the proposal form before taking the policy and the decision to issue the policy is taken by the underwriter of the insurance company. It is always better to disclose all your pre-existing diseases at the time of taking the travel insurance policy so that you may not face policy cancellation in the future.

  2. <strong>Does my travel insurance policy compensate in case of my passport loss?</strong>

    Yes. Passport is an important document to verify your identity and would also carry the visa of the country you are visiting. If you have lost your passport, you could immediately inform the local police and your insurance company. You could get a duplicate passport from the Indian embassy in the location you are visiting. Travel insurance policy would pay up to $200 for availing duplicate passports and this amount varies from one insurance company to another.

  3. <strong>Can I pay travel insurance premium in instalments?</strong>

    No. Travel insurance premium should be paid before the commencement of the risk and that too in one go. Travel insurance plans do not permit the payment of premium in instalments unlike life insurance and health insurance plans. Section 64 VB of the insurance act states that the coverage for risk should start only after receiving the premium, which means that the insurance cover would start only after the premium is paid. If the premium is paid before the required policy date, then the policy would start on the required date. On the other hand, if the premium is paid after the required date, then the policy inception date would be the date of receipt of premium.

  4. <strong>I’m young and healthy, do I need travel insurance?</strong>

    Yes. Even a healthy person would need to take travel insurance as there is no correlation between the age and chance of falling sick. Even a young person could fall sick, like food poisoning or slipping in their hotel room etc. and may require immediate medical attention. In such cases your health insurance policy would come handy and cover your medical expenses up to the sum Insured limit.

  5. <strong>Is travel insurance mandatory?</strong>

    Not always. Travel insurance is mandatory if you are visiting any of the Schengen countries. There are nearly 52 countries including those that have made travel insurance mandatory including the Schengen countries. There are other countries that do not insist on travel insurance but it would be wise to take a travel insurance policy whenever you are travelling to a foreign country as your health insurance policy would not work in those countries.

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Susheel Agarwal