Travel insurance claims face significantly higher rejection rates compared to other insurance categories, primarily due to inadequate disclosures and poor documentation practices. According to Girish Sehgal, chief–health UW & claims, customer service & operations at ICICI Lombard, lack of awareness around timely intimation and complete documentation can lead to higher rejection rates compared to other insurance categories, even as fewer claims are filed against policies being sold. The insurance industry emphasizes that travel insurance is fundamentally a contract requiring honest disclosures at purchase and clear understanding of what is covered versus excluded. As per Policybazaar, travel insurance is often treated as an afterthought while booking flight tickets, with many travellers simply comparing premiums and opting for the cheapest option that fits their budget, especially for destinations where insurance is mandatory.
Medical emergencies abroad represent the most common claim triggers but are also among the most frequently rejected due to non-disclosures. As explained by Manas Kapoor, business head of travel insurance at Policybazaar, hypertension patients who fall sick abroad and require hospitalization will have treatment covered if it's life-threatening, but if blood pressure is controlled with normal medicine, it's not covered. Insurance consultant Neeraj Khushalani notes that some insurers such as Tata AIG, ICICI Lombard, and Bajaj General Insurance may extend coverage up to around 10% of the sum insured for life-threatening PED-related emergencies. Most travel insurance policies include deductibles for both inpatient and outpatient treatments, with some insurers now offering OPD coverage without deductibles at higher premiums. In medical emergencies, travellers should inform the insurer or global assistance provider immediately, with admission occurring without prior intimation requiring immediate reporting. As per Bajaj General Insurance, it is always wise to check whether the hospital is in-network and inform the insurer at the earliest.
Travel disruption covers require detailed attention to policy thresholds and documentation requirements. According to industry experts, most policies define minimum delay thresholds of 4-6 hours or more before compensation becomes applicable, with delays shorter than this threshold generally not covered. A delay certificate from the airline is essential for filing claims, and receipts must be preserved for reimbursement of additional costs such as meals or hotel stays. For missed connecting flights, layovers below 6 hours are generally accepted only when flights are part of a single itinerary, as separate bookings result in no-show scenarios for the second airline. Coverage for missed flights or trip cancellations due to personal reasons is generally not available, but may be covered if caused by specified unforeseen events such as illness, medical emergencies, natural disasters, or technical issues. Flight cancellations due to extraordinary events such as war and terrorism are not covered, while natural disasters are often excluded or subject to conditions depending on policy wording.
Baggage-related covers are among the most frequently used travel insurance benefits but are also among the most misunderstood. According to insurance consultant Neeraj Khushalani, baggage delay and baggage loss are two separate covers under most travel insurance policies, typically with limits ranging from ₹500 to ₹2,000 depending on the insurer. The Property Irregularity Report (PIR), an airline-issued document required for lost, delayed, or damaged baggage, is essential for claims. For high-value items such as jewelry, claims involving high-value items require independent proof such as bills and are usually directed toward airline liability rather than insurance. Insurance protection for high-value items is available but typically requires prior declaration and additional costs. Baggage delay coverage typically ranges between ₹250 and ₹500 and covers essentials such as clothing, toiletries, and medicines when baggage is delayed beyond a threshold, usually 12 hours.
Timely filing remains crucial for successful travel insurance claims, with most rejections stemming from procedural gaps such as delayed reporting, incomplete documentation, or claims not aligning with policy timelines. As recommended by Rakesh Kaul, chief distribution officer-retail business at Bajaj General Insurance, claims should be filed within 24 hours of the incident, though delays can complicate the process and increase rejection chances. While claims may still be accepted after 90 to 180 days in exceptional cases, delays can complicate the process and increase chances of rejection. Notably, IRDAI has not prescribed a maximum claim-filing timeline, with acceptance of delayed claims largely at the insurer's discretion. In medical emergencies, travellers should inform the insurer or global assistance provider immediately, with admission occurring without prior intimation requiring immediate reporting. Travellers are also advised to keep emergency assistance contacts handy, as these global assistance providers are essential for understanding circumstances under which to contact them.
