The coverage and the cost i.e. the premium you pay for travel insurance depends on the country of your visit. Travel insurance plans and their corresponding coverage limits are essentially country specific.

The purpose of travel insurance is to keep you covered from all possible travel-related contingencies. This could be a trip or flight cancellation at the last minute, sudden illness and/or need for medical assistance during the trip or loss of luggage, wallet, passport or other important documents. It is important to note that the cost of keeping you covered in such situations varies across countries and so does travel insurance.
Let us see why:

Prevalent conditions

Travel insurance companies offer plans based on the risks covered. A country which is a popular tourist destination and witnesses a large number of footfalls every year is relatively low on risk than a country which is witnessing political instability or is just out of a war-torn condition.

For instance, travel insurance for a trip to Afghanistan might cost more than that for Singapore. This is because conditions in Afghanistan are normally less conducive to travel than Singapore.

Medical treatment cost

Cost of medical assistance, ambulance charges, consultation fees and hospitalization charges are not the same in every country. They vary as per the prevailing economic conditions and the accessibility or availability of the services.

For instance, the cost of medical aid in the US is much higher than various other countries across the globe. So, coverage and premium for a travel insurance policy would be much higher for the US compared to other nations.

Flight expenditure

Keeping you covered for the cost of cancelled flights is one of the basic benefits offered by almost all travel insurance policies.

Evidently, the premium would be higher for such destinations for which airfare is higher. Also, in case your destination requires multiple connecting flights, your travel insurance may witness drastic changes in terms of premiums and coverage offered.

Laws and regulations of the country

There are some countries which mandate travel insurance. For example, travel insurance is mandatory for Schengen countries and Australia. However, it is not mandatory for travel to Dubai. Naturally, buying travel insurance for Schengen countries will be more expensive compared to others.

Also, countries with stringent laws for travellers might see insurers including additional clauses or coverages which might result in shelling out higher premiums and changes in the policy’s terms and conditions.

Before embarking on a foreign trip, know the applicable code of conduct for tourists and make sure your travel insurance policy hedges you against all the possible contingencies arising out of its violation mistakenly.

Click here to know more about travel insurance.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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