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11 Reasons Why Travel Insurance Is Important for Every Traveller

Team AckoJul 14, 2025

Planning a dream vacation? Flights booked, bags packed, itinerary set, but unexpected issues like lost luggage, medical emergencies, or flight cancellations can ruin it all. That is where travel insurance steps in as your safety net. Often underestimated, it shields you from financial losses and stress. Whether travelling locally or abroad, this blog outlines 11 key benefits of travel insurance, proving why it is not just smart, but essential for every traveller.

Contents

List of 11 Reasons Why You Need Travel Insurance

List of 11 Reasons Why You Need Travel Insurance

Before you plan on purchasing a travel insurance policy for your next holiday, make sure to understand how travel insurance works and how it is beneficial:

1. Illness Expenses

People who travel are exposed to different settings, foods, and weather, which might result in unanticipated illnesses. Whether it is viral fever, food poisoning, or more serious illnesses, there may be a need to see the doctor.

Travel insurance covers the costs of medical consultations, diagnostic testing, and hospital stays caused by illness. The coverage guarantees that unforeseen health problems will not end your trip prematurely by enabling you to obtain prompt medical care without financial strain.

2. Accidental/Hospitalisation Emergency

Unexpected circumstances, strange surroundings, and road systems can all contribute to travel accidents. Travel insurance can significantly improve financial security by covering medical costs associated with unintentional accidents or emergency hospitalisations.

The coverage makes sure you get the care you need without having to pay for it all, whether it is a small injury or a catastrophic one that requires long-term care. Because of this safety net, tourists may concentrate on getting better rather than stressing about paying for medical care overseas.

3. Emergency Stay and Extension

If the insured individual is required to stay in a hotel as a result of a medical emergency during their trip, the travel insurance will cover the cost of the accommodation, subject to the maximum limit outlined in the insurance policy.

This benefit ensures that the policyholder is not burdened with unexpected lodging expenses arising from unforeseen health issues. The reimbursement amount will not exceed the coverage limit specified in the travel insurance document agreed upon at the time of purchase.

4. Physiotherapy Expenses

Injuries sustained during travel may sometimes require follow-up physiotherapy sessions to ensure complete recovery. These expenses are usually covered by travel insurance if the treatment is medically required and stems from an accident sustained while travelling.

This provision helps to speed up the healing process by enabling access to high-quality physical treatment without putting a strain on finances. Active vacationers or those who like physical activities will especially benefit from it.

5. OPD Expenses

Another key benefit of travel insurance is that not every medical condition necessitates hospitalisation; some may just require outpatient care, such as lab work, prescription drugs, or doctor visits. OPD coverage for illnesses or minor injuries received while travelling is frequently included in travel insurance packages.

This guarantees that you receive the required medical care without having to pay for tests or consultations out of pocket. Travel insurance offers more extensive assistance than many travellers anticipate, by paying for such typical but essential costs as per policy terms.

6. Flight Delay/ Cancellation/ Rescheduling

Unexpected cancellations or delays may severely impact your travel plans. Travel insurance policies, such as ACKO Travel Insurance, cover additional expenses if a flight is delayed for more than a certain number of hours.

Moreover, if your travel plans are cancelled for reasons beyond your control due to an unavoidable situation like an accident or hospitalisation, the insurance provider generally reimburses you for the costs as per the terms of the insurance plan.

7. Missed Flight/ Connection

Missing a flight because of unforeseen delays, long lines, or transportation problems may be expensive and distressing. However, if you miss your flight and book a new one within the specified time and with the required documentation, you can easily claim reimbursement as per the policy terms.

Similarly, the insurance provider may pay for the cost of booking a new flight, in case you missed your connecting flight due to a delay on the first leg, as per the policy terms and conditions. This coverage reduces journey disruptions and offers comfort.

8. Loss of Passport

Losing your passport while travelling abroad can be distressing and potentially serious, disrupting your plans and causing unexpected delays. Fortunately, with a comprehensive international travel insurance policy, you do not have to face it alone.

A proper travel insurance offers financial coverage for the costs involved in securing a duplicate passport, including application fees and documentation charges. The goal here is to ease your burden and help you resume your journey with minimal stress and interruption to your travel experience.

9. Total/ Partial Loss of Baggage

When considering the benefits of travel insurance for students, remember that losing or damaging your luggage can be frustrating and upsetting during the trip. Losing your luggage while travelling can cause serious inconvenience. A proper travel insurance plan offers fixed compensation for both partial and total loss of checked-in baggage.

Insurance providers understand that even minor damage or loss to your luggage matters. That is why if your baggage is damaged and needs repair, or if its contents go missing, the insurance provider will pay the amount specified in your policy schedule.

10. Adventure Sports Injuries

Although thrilling, adventure sports like paragliding, scuba diving, and skiing are risky. Hospitalisation or expert care may be necessary for injuries sustained during such activities.

Medical costs associated with adventure sports injuries are sometimes covered by optional add-on coverage offered by travel insurance. Those who prefer high-adrenaline activities would especially benefit from this protection, which gives them an extra degree of security against unanticipated injury.

11. Bounced Booking

Travellers may occasionally experience service denials from hotels or airlines despite having confirmed reservations because of overbooking or operational problems. Travel plans may be thrown off, and unforeseen costs may arise from these bouncing arrangements.

In some cases, the rebooking cost may be covered by travel insurance as per policy terms, guaranteeing that your vacation proceeds without further financial strain. During the busiest travel seasons, when last-minute bookings are costly and hard to make, this protection is crucial.

Bottom Line

Overall, travel insurance offers vital protection against unexpected disruptions, from medical emergencies to lost baggage or trip cancellations. Once you understand the benefits of travel insurance, you know that it brings peace of mind, ensuring your journey remains as stress-free as possible. Ultimately, securing travel insurance is a wise decision that safeguards both your well-being and the enjoyment of your travel experience.

FAQs

Below are some of the frequently asked questions on Actuary in travel Insurance

Is it okay if I do not have travel insurance?

It is not compulsory to have travel insurance for every place you travel. However, there are certain places where it might be a mandatory requirement, especially to get a visa, such as for Schengen countries.

Can I buy travel insurance online?

Yes, you can buy travel insurance online from the website or mobile application of the concerned insurance provider.

Is it important to get travel insurance?

Travel insurance is important, as it financially protects you against any accidents, such as lost baggage, illnesses, or more, on a trip.

Can I claim travel insurance for delayed baggage?

Yes, you can claim travel insurance for your delayed baggage, as per the policy terms.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet, and is subject to changes.