Everything to Know About Credit Cards Travel Insurance Benefits

Benefits of Travel Insurance on Credit Cards

If you are still wondering, do credit cards have travel insurance? The answer is yes, some credit cards offer travel insurance, but not all. They offer basic coverage for the unpredictable situations a cardholder may find themselves in. As compared to comprehensive travel insurance policies, these plans do have limitations.Let's take a look at coverage of travel insurance offered by credit cards.

1. Trip Cancellation

   Most credit cards with travel insurance provide trip cancellation coverage for natural disasters, terrorist threats, bad weather, etc. They may even cover the non-refundable costs one may have incurred before delays or a premature end to the trip.

   The exact coverage offered by each credit card company will differ. That's why it is good to know the terms and features of travel insurance covered by credit card beforehand.

2. Loss of Luggage

   Usually, credit card travel insurance covers the incurred expenses in case of loss or theft of luggage. In case of losing the credit card too, it can be covered under credit card theft insurance. Some even cover costs incurred due to the delay of checked-in luggage. In addition to that, loss of personal belongings is covered up to a specific limit.

3. Accidental Death

   Generally, credit card travel insurance coverage offers a pre-decided sum assured that the cardholder would get in case of accidental death or dismemberment of a body part.

   Note- Death under certain circumstances is not covered such as heart attack or due to an existing medical condition.

4. Medical and Emergency Medical Help

   Travel insurance covered by credit cards cover the expenses incurred due to medical emergencies during a trip. The thing to keep in mind is, injuries caused due to activities like horse-riding, bungee jumping, skydiving, etc. are not covered under the insurance.

5. Trip Delay

   Most credit cards offering travel insurance cover the cost of accommodations, food, etc. in case your trip gets delayed due to the covered reasons.

6. Emergency Medical Evacuation

   If you get severely injured or fall immensely sick such that you need to be transported to some other speciality medical facility, most travel insurance by credit card covers the emergency medical evacuation cost.

Above-mentioned are some of the basic travel insurance benefits offered by credit card travel insurance. You must understand that this type of travel insurance cannot be altered and tailored to meet your needs. Travel insurance on credit cards usually provide domestic travel insurance coverage as well as international travel insurance coverage, so you must check the exact benefits offered by your credit card with travel insurance.

Which Credit Card Companies Offer Travel Insurance in India?

Now let us look at which credit cards have travel insurance and what are their unique features.

1. HDFC Regalia Credit Card

   It offers air accidental death insurance coverage of up to Rs. 1 crore, emergency hospitalisation coverage overseas of up to Rs. 15 lakhs, and Rs. 9 lakh credit liability cover.

2. Standard Chartered Priority Visa Infinite Credit Card

   This card comes with complimentary overseas air accident cover of up to Rs. 1 Crore and medical emergency insurance worth USD 25,000.

3. ICICI Travel Card

   It offers coverage for personal air accident deaths up to Rs.10 lakhs. In addition to that, loss of travel documents (passport, tickets, etc.) is covered up to USD 500, plane hijack coverage up to USD 3000 and missed connecting flights coverage of USD 300 is offered.

4. Axis Bank Privilege Credit Card

   It offers air accident coverage of up to Rs. 2.5 crore. In the case of loss of documents or delay in luggage check-in, it offers coverage of up to USD 300 each.

Why Opt for Travel Insurance?

While travelling provides a much-needed break from the daily routine, it also brings travel expenses along.

When you travel, online travel insurance provides a safety net for your finances. In case of any unfortunate incident on the trip, insurance comes to the rescue to cover the unforeseen expenses as per the applicable terms and conditions.

It is better to be safe than sorry when you are travelling. When you travel, you get exposed to various travel-related risks. Under various circumstances, overseas travel insurance provides you with financial security. Though the cost of your trip can rise by about 4%-8% depending on the opted coverage, it brings with it the necessary peace of mind and financial savings in case something goes wrong.

How Much Does Travel Insurance Cost?

When trips cost a hefty amount, some people are reluctant to pay a nominal travel insurance premium for financial protection during their trip. One may think - why should I pay for insurance premium? What if I don't need to avail of travel insurance coverage? Then the paid insurance premium will be a sheer waste. However, insurance experts advise opting for a travel insurance plan to secure your trip against unavoidable expenses that can burn a hole in your pocket, irrespective if your trip is short or long, expensive or inexpensive.

Over to You

While a credit card with travel insurance comes with pre-specifications, the coverage may vary from one company to the other. It is also to be noted that Policybazaar does not offer credit cards, but you can compare travel insurance plans from different insurers here. When buying travel insurance covered by credit card, ensure you thoroughly read the details of offered travel insurance coverage by the credit card company beforehand. What you need to understand is that it is not comprehensive travel insurance and will have its limitations. However, it is always good to have that extra level of security for yourself.