Why Should We Buy Annual Trip Travel Insurance?


Why Should We Buy Annual Trip Travel Insurance?

An opportunity to travel abroad opens up new avenues of career growth and expansion. Be it for work or business, an international trip gives you a whole new perspective of different cultures and economies of scale, and makes you competent in today’s era of globalisation. 

However, an international trip is never devoid of financial and medical risks. This is why buying a travel insurance policy is essential before embarking on any journey. 

Especially for those who have to travel more frequently during the year, buying individual travel insurance policies can be very expensive. Hence, there’s an option for them to buy annual travel insurance in India for all the trips in a year. 

This article will elaborate on the meaning and significance of annual travel insurance in India and how it works.

What is an Annual Trip Travel Insurance Policy?

An annual Trip Travel Insurance Policy is one that covers more than one trip in a policy year. This type of travel insurance plan is ideal for frequent travellers who fly to different destinations for work or business purposes. A single premium is charged for all the trips covered during a policy year.

What is a Single Trip Insurance Policy?

A single-trip insurance policy covers a single journey to one or more destinations. In this type of travel insurance policy, the policy period ends after you return to your home country.

Difference between a Single Trip and Annual Trip Insurance Policy

Here are some major points of difference between a Single Trip and Annual Trip Insurance Policy:

Difference Single Trip Annual Trip
Policy Period As long as the duration of a trip is covered Continues for one year
What is covered? Covers only one trip Covers multiple trips in the entire year
Who should buy? Ideal for those who travel once a year Ideal for those who travel frequently during the year
Cost-benefit Usually cheaper than the Annual Trip Insurance Cost-effective if you want coverage for more than one trip in a single premium
Trip cancellation Maximum of one claim per insured can be paid Maximum of three claims per insured can be paid


How long should one trip be in multi-trip travel insurance?

In a multi-trip travel insurance policy, the maximum duration of one trip can be 30, 45, 60, or 90 days specified on the Policy document. 

How is a premium charged in a multi-trip travel insurance?

The premium charged under the annual trip insurance policy is decided upon the following factors:

  • Amount of sum insured, 
  • Duration of the trips (in days),  
  • Type of trip: Plans specific to the various destination types covering different scope of geographies, e.g. Asia, Australia & New Zealand (ANZ), Canada, Africa, Europe etc. 
  • Type of Coverage: Whether you’ve opted for Silver, Gold or Platinum type coverage.  
  • Health condition of the individual

Will I get a Refund of the Premium in case of Policy Cancellation before the Date?

Yes, you can get a partial refund of the premium if you cancel your annual trip insurance policy before the end of your policy period. The refund of the premium will be decided on the basis of how much policy period has been utilised. Accordingly, here are the limits of permissible refund:

Policy period utilised No. of trip days used Retained premium (% of Total Premium)

Up to 1 month

Up to 7


7 to 21


Above 21


2nd to 3rd month

Up to 21


21 to 35


Above 35

Full annual rate

4th to 6th month

Up to 35


Above 35

Full annual rate

After 6th month

Any period

Full annual rate

We can understand the above criteria with help of a case study:

Case-I: Suppose a policyholder A has purchased a policy on 1st December 2023. From 5th to 14th December, “A” went on 3 different trips of 3 days each. After completion of 9 days, A decides to discontinue his policy. In this case, the insurer will retain 50% of the premium he has paid so far, and he will get a refund of the remaining 50% premium.

Case-II: Another policyholder B has purchased a policy on 13th November 2023.  From 15th November to 14th December, B went on a month-long trip to different destinations. After one month, B has now decided to discontinue the policy. In this case, the insurer will retain 75% of the premium he has paid so far, and he will get a refund of the remaining 25% premium.

To Sum Up

It is a common saying- “Penny wise, pound foolish.” From the above, we conclude that if we intend to get coverage for multiple trips during a year, it is wise to opt for an integrated annual trip insurance policy. Such a travel insurance policy saves you much money on individual policy premiums. Here, you must pay only a single premium for multiple trips covered during the policy year. You may choose to buy the best annual multi trip travel insurance from a trustworthy insurer such as Care Health Insurance.

>> Also Read: All You Need to Know About Single-trip Travel Insurance

Disclaimer: Verifying the policy details and coverage with the official policy documents is essential. Also, kindly consult a professional medical expert to verify the details of health concerns.


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