Why Comprehensive Personal Liability is a Must in Travel Insurance?

• Written by Gungun Bhatia

  Reviewed by Rashmi Rai

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Imagine you're on your dream vacation abroad, soaking in the sights, when an unexpected accident occurs—someone gets hurt, and you're held responsible. The costs? Potentially astronomical. Legal complications? Even worse.

This is where comprehensive personal liability cover in your travel insurance steps in like an unsung hero. As complicated as it may sound, personal liability is an incident that can force you into financial loss for an accident occurring in a foreign land, whether intentionally or not.

The good news is that you can easily get through this tough phase of liability by opting for the right travel insurance plan. In this blog, we’ll break down why comprehensive personal liability is not just a “nice-to-have” but a must-have in your travel insurance plan.

What is Personal Liability?

Suppose you accidentally spill hot coffee, burning an old lady’s hand during your international flight. While the accident was unintentional, the elderly may/ may not demand for compensation and further escalate the issue till court– making it your personal liability.

Personal liability is an individual’s legal responsibility to compensate for the loss caused to a third party. Before we get into the technicalities, let's clarify what personal liability insurance is in detail.

What is Personal Liability Insurance?

Personal liability coverage in travel insurance is a benefit offered by travel insurance companies, under which the insurer reimburses the amount for any unintentional liability charges or those caused by specified reasons. Under the personal liability coverage in travel insurance, the insured can seek assistance from the insurer to be released from the liability charged to them in a foreign land.

Although some travel insurance companies offer personal liability coverage at an additional premium, Travel Insurance by Care Insurance provides personal liability coverage as part of the standard policy benefits without any extra charges. But what does personal liability coverage actually cover? Let’s explore.

What Does Comprehensive Personal Liability Typically Cover?

Most travel insurance with personal liability cover includes:

• Injury to a third party (unintentional physical harm caused by you)
• Damage to third-party property (e.g., broken electronics, hotel furniture)
• Legal expenses (defence fees, court costs, and settlements)
• Compensation awarded to the injured/damaged party
• Incidents caused by insured family members (as per policy terms)

However, every policy has its limits and exclusions, so you must always refer to the policy terms and conditions.

How Does Personal Liability Coverage in Travel Insurance Work?

Being charged with liability in a foreign country can be stressful, given that you are not aware of the laws and provisions of the new country. However, here are steps you can take to get out of a third-party liability issue with the help of International travel insurance:

Step 1: Incident Occurrence

Once you have been charged for personal liability, make sure to check whether the charges are false or not. You must always remember that your personal liability travel insurance will only cover liability that is “false” or “unintentional”. Any charges for intentional harm caused by you may not be covered under your travel plan.

Step 2: Contact the Insurer

As soon as you make sure the charges are false, or you did not intentionally harm the third party, contact your insurer and narrate the issue. You should reach out to the insurer through the given emergency numbers.

Step 3: Provide the Right Documentation

Once you inform your insurer, they may ask you to provide a few documents or proof of innocence. Once the insurance company has done all the verifications, you should let the insurer talk to the third party as your formal representative.

Step 4: Settlement

You should cooperate with your insurer and let them persuade the third party for the settlement. If the third party agrees for an out-of-court settlement, then the insurer shall pay the decided settlement amount to the third party from the sum insured of your travel insurance plan.

Step 5: Legal Procedures

In case the third party takes the matter to court and does not agree upon an out-of-court settlement, the insurer shall help you financially to get through the legal procedures.

If the third party agrees upon an out-of-court settlement, and you decide to take the matter to court, please note that your insurance company will no longer be liable to pay for the expenses incurred in the procedure.

*Please note that the steps mentioned above may differ occasionally; for accurate details, please refer to the policy documents or talk to your insurer.

What's Usually Not Covered?

Like every insurance component, personal liability cover has its boundaries. It typically doesn’t cover:

• Intentional damage or criminal acts
• Injury/damage to your own family or belongings
• Liabilities arising from professional activities (e.g., business work)
• Damage caused while operating motor vehicles (separate motor insurance required)
• High-risk sports or activities, unless covered by add-ons

Understanding these exclusions is critical so you are not stranded during the emergency.

Who Should Opt for Personal Liability in Travel Insurance?

Short answer: Everyone. But it’s especially essential for:

• Families travelling with kids (accidents happen!)
• Senior citizens (more prone to unexpected falls or incidents)
• Adventure travellers (skiing, mountain biking, etc.)
• Frequent international travellers
• Business travellers staying in expensive accommodations

No matter how cautious you are, accidents and misunderstandings can happen, and it’s better to be prepared than to be underinsured.

How to Choose the Right Travel Insurance with Personal Liability Cover?

Here are key tips:

• Look for “Comprehensive” Coverage – Not all travel insurance plans include liability protection. Choose plans that mention comprehensive personal liability in their features.
• Check the Coverage Limit – Go for at least USD 100,000 liability cover if travelling to Western countries where living expenses are higher than in India.
• Include Family Members – Ensure dependents like children or elderly parents are included in the coverage scope.
• Read the Fine Print – Know what’s excluded. Activities like skiing or scuba diving may need additional coverage.
• Emergency Support – Opt for insurers offering round-the-clock global assistance. Legal help on foreign soil can be critical.

If you are looking for robust travel insurance with personal liability cover, Care Health Insurance offers plans that not only protect against medical emergencies and baggage loss but also cover third-party liabilities abroad. This makes Care Health Insurance a dependable companion for safe and worry-free international travel.

Wrapping Up

While you pack your passport and itinerary, don’t forget to include comprehensive personal liability in your travel insurance plan.

Personal Liability in travel insurance provides coverage for mishaps such as personal liability to date. Moreover, you should know that you do not have to pay a higher premium to buy travel insurance with personal liability coverage. You can simply buy travel insurance plan from Care Health Insurance and get covered for personal liability in the base plan. 

>> Also Read: Compassionate Visits and Travel Insurance

Disclaimer: All plan features, benefits, coverage, and claims underwriting are subject to policy terms and conditions. Kindly refer to the brochure, sales prospectus, and policy documents carefully.