As international travel becomes an integral part of life for Indians—whether for leisure, business, or education—there has been a significant rise in travel insurance claims, especially due to health-related emergencies and operational disruptions. Popular destinations such as the US, Thailand, the UK, Germany, and others are seeing an increasing reliance on insurance coverage to mitigate these risks. Travel insurance has evolved from being an optional add-on to a critical component of the travel experience, offering peace of mind against the unpredictable nature of modern travel.
Recent claims data from TATA AIG General Insurance, released on World Tourism Day, reveals that medical emergencies, including both inpatient and outpatient treatment, represent more than half of all travel insurance claims filed by Indian travelers between April 2024 and August 2025. Alongside medical concerns, operational disruptions—such as flight delays and lost baggage—account for a significant portion of claims, highlighting the unpredictable nature of air travel.
Health-Related Claims Take the Lead
Medical concerns remain the dominant reason travelers purchase insurance. Whether dealing with unexpected illnesses, injuries, or common travel-related ailments like “Bali Belly,” health-related risks abroad have emerged as one of the leading causes of insurance claims. Medical expenses, both inpatient and outpatient, accounted for 55% of all claims during this period.
International travel carries inherent health risks, such as foodborne illnesses, altitude sickness, or exacerbation of chronic conditions. These risks can quickly escalate in foreign countries, leading to steep medical bills. As healthcare costs abroad can be significantly higher than those in India, travel insurance serves as an essential safety net, ensuring that travelers are not burdened with unexpected financial strain during a medical emergency.
Operational Disruptions on the Rise
Following closely behind medical claims, operational disruptions such as flight delays, cancellations, and lost baggage make up 23% of travel insurance claims. The frequency of these issues underscores the growing stress that travelers face due to logistical challenges in modern air travel. In recent years, weather-related disruptions, overbooked flights, and capacity shortages at airports have been common causes of delays.
Airports in major hubs like the US, the UK, and the UAE have struggled to keep pace with the increasing demand for air travel, resulting in frustration for passengers who experience long waits or missed connections. With these disruptions becoming more frequent, travelers are increasingly turning to insurance to cover the costs associated with lost luggage, delayed flights, and missed connections.
The Need for Comprehensive Coverage
Given the unpredictability of modern air travel, it’s more important than ever for travelers to invest in comprehensive travel insurance before their international trips. Whether protecting against unexpected medical emergencies or the logistical challenges that frequently occur, travel insurance offers crucial financial protection, allowing travelers to focus on enjoying their trips without worrying about potential setbacks.
As travel continues to grow, so does the need for robust insurance coverage. For many Indians traveling to destinations like the US, UK, Thailand, and Germany, ensuring their health and covering operational disruptions has become a key part of the travel planning process.
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