War-related risk not covered
Most standard travel and health insurance policies exclude losses arising from war, war-like situations, riots, civil unrest, military action, and so on. So, the coverage during such events is restricted to non‑war related medical or travel emergencies. “The situation has reinforced the need for clearer communication of exclusions and more robust geopolitical risk assessment by insurers,” says Ramit Goyal, Chief Distribution Officer, Generali Central Insurance. To be sure, if you are in a war-affected region, but need treatment for an illness or injury unrelated to the fallout from the hostilities, your policy will reimburse the expenses.
Travel insurance takes a hit
Many travellers have had to abandon plans due to soaring airfares on international routes. This has also affected the issuance of travel insurance policies. “The conflict in Iran has led to a sharp drop in travel to the region, which in turn has kept both claims and new travel insurance purchases subdued. Travellers are largely avoiding high‑risk corridors, limiting immediate exposure for insurers,” says Goyal.
Despite Europe not being the hot spot of conflict, Indians are shunning the popular EU tourist destinations. “It’s the European (tourist) season at present. Hence, the impact is evident. However, since the Middle East is a mid-point for airlines, the pricing has risen sharply, affecting the entire industry,” says Meet Kapadia, Head, Travel Insurance, Policybazaar.com, an insurance aggregation and broking firm. According to him, soaring airfares and travel risks in the current scenario have resulted in the travel insurance business taking a 15-20% hit.
In fact, several insurers have completely stopped issuing policies to travellers headed to the Gulf region, including the United Arab Emirates (UAE), Saudi Arabia, Oman, Qatar, and, indeed, Iran. “Most insurers are declining fresh policy proposals covering travel to this region,” says chartered accountant and insurance consultant Mayank Gosar.
Suspending coverage to conflictaffected countries, besides locations where the Indian Foreign Ministry’s advisory against travel is in place is a standard practice. “While insurance for international trips is a challenge due to the geopolitical tensions and flight disruptions, domestic travel, too, is affected due to high airfares. In any case, travel insurance uptake for travelling within India is limited,” says Kapil Mehta, Cofounder, SecureNow, an insurance broking firm. However, parents—especially seniors visiting families in the US—are likely to stick to travel plans. This is the region where healthcare costs are among the highest. This is where lesserknown clauses in most travel policies become critical, as their stay usually tends to extend to three to six months.
15-20%
Impact on travel insurance business due to war-linked risks, disruptions and high flight fares.
$10,000-20,000
Absolute capping on preexisting disease coverage for senior citizens.
What you should know
- Conflict risks, subdued travel demand dent travel insurance business.
- Insurers suspend cover for the hostilityhit destinations.
- War-related losses constitute standard insurance exclusions.
- For elderly travellers, pre-existing disease (PED) clauses remain key risks.
- Make note of PED payout conditions, including sublimits and caps.
- Insurers do not entertain undeclared PED claims.
- Maintain supporting proof for flight delay, baggage loss, etc.
Keep an eye on the fine print
The foremost aspect you need to clarify is the pre-existing disease (PED) clause. This is particularly important for senior citizens. “Many travel to meet their children in the US during this period, and buy travel insurance to cover their medical expenses, should any arise, there,” says Gosar. However, awareness around coverage for PED is low.
“Many policies either exclude PEDs or offer only limited, conditional coverage tied to stability clauses or additional premiums. This remains the biggest gap between customer expectations and actual policy design,” says Goyal. Typically, travel policies reimburse treatment expenses for PED only when the circumstances are lifethreatening. “Common conditions, such as blood pressure, diabetes, and high cholesterol, usually fall under PED coverage limits. Even if the overall sum insured is higher, the PED cover for those over the age of 60 may be restricted to a small proportion of the overall coverage— for instance, 3% of the sum insured, subject to a maximum cap of $10,000- 12,000,” adds Gosar. Certain premium variants offer larger coverage of up to $20,000. In such cases, he believes, buying health insurance locally in the destination country, if available, is an option worth considering. “This may offer better coverage without stringent caps. Another strategy is to buy two policies to enhance the overall coverage, though policy terms need to be examined carefully,” he says.
Also bear in mind that even with policies that cover treatment for PEDs under life-threatening conditions, you need to have declared the ailments at the time of policy purchase. Undisclosed PEDs will not be covered. “Policyholders should also understand the sub-limits in hospitalisation and room rent, which vary by the insurer,” adds Kapadia.
Dos and don’ts
While filing a travel insurance claim, documentation is critical. Insurers often ask for extensive paperwork, and claim approval can depend on how carefully these documents are maintained. “For instance, in the event of lost baggage, travellers must file and share the airline’s baggage loss report or acknowledgement. Meticulous details, including the bag’s colour, identifying marks, and the list of items kept inside it, will be needed. Fill out the claim form with care and preserve supporting documents such as baggage tags, boarding passes and a copy of the visa,” says Gosar.
In case of flight cancellations or delays, if the airline itself arranges alternative accommodation or reimburses expenses, those costs typically cannot be claimed again under the travel insurance policy. “A common area of confusion is when passengers make their own alternative travel arrangements. Any such expenses may not always be reimbursed. Insurers may treat this as a self-chosen alternative routing, particularly if the final destination or route was changed at the traveller’s discretion,” says Gosar.
