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Credit cards are one of the most prominent financial assets used by young generations when it comes to managing their finances. Apart from offering instant credit, a credit card also offers various bonuses, discounts and helps you build a good credit score. One of the benefits that the premium credit cards offer is insurance. For instance, if you book your flight tickets through a credit card, you will probably be offered credit card travel insurance.
From unexpected flight delays and lost luggage to unplanned injuries or illnesses, travel insurance will provide you with financial coverage for everything. But is this travel insurance sufficient, or should you consider a comprehensive plan?
In this article, we'll examine the benefits and coverage of both Travel Insurance and Credit Card Travel Insurance to help you select the best option before you book your next international trip.
What is Comprehensive Travel Insurance?
Travel insurance is a financial tool that helps you stay financially stable when an emergency occurs during your international trip.
Travel Insurance policy usually covers you from the moment you leave your home country until you safely return. Whether you're travelling for vacation, study, or work, having travel insurance is essential for enjoying a memorable trip across different destinations.
What Does International Travel Insurance Cover?
Travel insurance policies provide financial protection in the event of an emergency while you are abroad. Below are the major coverage offered by one of the best travel insurance plans in India.
- Hospitalisation expenses
- Coverage for life-threatening conditions due to Pre-existing disease
- Personal accident cover
- Loss of checked-in baggage
- Trip cancellation
- Trip interruption
- Automatic extension
- Upgradation to business class
- Daily allowance
- Personal liability
What is Credit Card Travel Insurance?
Credit card travel insurance is a supplementary benefit provided to the credit cardholders. It is activated while you make the travel-related arrangements, such as booking your flight tickets, accommodations such as hotels and resorts and other events or activities planned for the trip. The specifics of the coverage and terms vary based on the card issuer and the type of credit card.
What Does Credit Card Travel Insurance Cover?
Booking your trip with an eligible credit card grants you access to built-in travel protections. These benefits may include:
- Trip Cancellation/Interruption
- Lost or Delayed Baggage
- Trip Delay
- Medical Emergencies
- Personal Accident Insurance
- Rental Car Insurance
- Lost or Stolen Documents
The terms & conditions of each credit card determine the coverage provided by the credit card travel insurance.
Travel Insurance vs Credit Card Travel Insurance: 6 Key Differences
To understand the difference, here's the comparison between Travel insurance vs credit card insurance:
| Features | Comprehensive Travel Insurance | Credit Card Travel Insurance |
|---|---|---|
| Cost | Purchased separately | Offered when making travel-related purchases with an eligible credit card |
| Medical Coverage | Up to the Sum Insured | Limited |
| Trip Cancellation | Covered | Limited Coverage |
| Lost Baggage | Full Coverage | Limited Coverage |
| Adventure Activities | Add-ons (Optional) | Not Covered |
| Claim Process | Easy | Through Card (Sometimes problematic) |
Do you know? When you apply for a visa, whether it’s a Schengen visa, a UK visa, or a Canadian visa, credit card travel insurance isn't accepted. Instead, you’ll need to purchase International Travel Insurance separately.
Best Credit Cards for Travel Insurance in India
Not every credit card provides the same travel coverage; some offer extensive benefits, while others only have basic insurance. If you're dependent on a card-based travel protection, here are some of the best travel insurance credit cards in India that come with valuable insurance benefits to consider.
Marriott Bonvoy HDFC Credit Card
This HDFC credit card provides strong travel protection for international trips. It features comprehensive air accident coverage, flight delay coverage, loss of travel documents coverage, delay or loss of checked-in baggage coverage, loss liability coverage, and more. It is perfect for frequent travellers looking for additional security.
Marriott Bonvoy HDFC Credit Card Fees
- Joining fee: Rs 3000 + GS
- Annual fees: Rs 3000 + GST
ICICI Bank Emeralde Credit Card
This ICICI bank credit card offers travel protection with high coverage limits, including accident, plane hijacking, loss of checked-in baggage, credit shield, medical expenses, loss of passport and travel-related documents, delay in baggage, missing connecting international flight during transit, and more. The card is ideal for individuals who don't have separate travel insurance.
ICICI Bank Emeralde Credit Card Fees
- Joining Fees: Rs 12000 + GST
- Annual Fees: Rs 12000 + GST
Axis Bank ATLAS Credit Card
The Axis Bank ATLAS Credit Card provides complimentary travel insurance for air accidents, lost baggage, and emergency medical expenses. Cardholders also get coverage for travel delays and trip interruptions, and access to a travel portal featuring discounts and extra Edge Miles on bookings.
Axis Bank ATLAS Credit Card Fees
- Joining Fees: Rs 5000 + GST
- Annual Fees: Rs 5000 + GST
HSBC TravelOne Credit Card
HSBC credit card insurance provides various travel benefits, such as coverage for lost or delayed checked-in baggage, missed connecting flights, and lost passports or travel documents. It also covers air accident insurance and travel inconvenience insurance.
HSBC TravelOne Credit Card Fees
- Joining Fees: Rs 4999 + GST
- Annual Fees: Rs 4999 + GST
American Express Platinum Travel Credit Card
The American Express credit card is among the best travel insurance credit cards. It offers several travel insurance benefits, including trip delay, lost baggage, and travel accident insurance. If a commercial carrier loses or delays your baggage, the card offers tracking assistance and updates.
American Express Credit Card Fees
- Joining Fees: Rs 5000 + GST
- Annual Fees: Rs 5000 + GST
Bonus Tip: Always check the credit card's official benefits guidelines before assuming you’re covered.
International Travel Insurance and Credit Card Trip Insurance: Do you Need Both?
You don't need both, but relying only on credit card travel insurance can be risky. The right choice depends on travel style, destinations, and risk coverage that you require. Here are some situations to help you decide when to choose which travel insurance.
| Situations | Best Travel Insurance To Choose |
|---|---|
| For a Domestic Trip | Credit card trip insurance can be enough |
| For International Trip | Need to purchase International Travel Insurance |
| Travelling with Family | Purchase Family Travel Insurance with add-ons that suit your travel needs |
| For Frequent Business Trips | Multi-Trip Travel Insurance can be better |
| Travelling to a remote place with limited medical facilities | Must buy International Travel Insurance |
| For Studies | Student Travel Insurance is the best choice |
Travel Safely, Not Carelessly!
Travelling is an adventure. We often spend weeks preparing the perfect plan, thinking about everything from flights and hotels to destinations and outfits. In all the excitement, sometimes we overlook the most valuable part of our trip–Travel Insurance. With coverage for medical issues, trip cancellation and lost baggage, it acts as our safety net. A comprehensive travel insurance policy ensures your trip is enjoyable and peaceful. After all, when things don't go as planned on your journey, it's the most dependable backup option.
Want Help Choosing the Best International Travel Insurance?
At Care Health Insurance, we believe an international trip deserves peace of mind and not panic at the airport! Therefore, we offer region-specific international travel insurance plans coupled with accessible coverage, an easier claim process and a humble support team!
>> Also Read: How Does International Travel Insurance Work?
Disclaimer: Plan features, benefits, coverage, and underwriting claims are subject to policy terms and conditions. Please refer to the brochure, sales prospectus, and policy documents carefully.
