Travel insurance is often an afterthought for Indian travellers - until something goes wrong. As an agent, recommending (and sometimes bundling) travel insurance protects your client AND reduces your own liability. Here's what you need to know.
When is travel insurance mandatory?
| Scenario | Insurance required? |
|---|---|
| Schengen visa application | Yes - minimum €30,000 (approx. ₹27 lakh) medical coverage |
| UK visa | Recommended but not mandatory |
| USA visa | Not mandatory but strongly recommended |
| Thailand/Singapore/UAE | Not mandatory |
| Domestic travel | Never mandatory |
| Adventure activities (trekking, scuba) | Strongly recommended; required by some operators |
| Cruise travel | Required by most cruise lines |
Key point: For Schengen visa applications, insurance isn't optional. It must cover the entire trip duration + 15 days, with minimum €30,000 medical coverage and repatriation.
Types of coverage
Medical coverage
- Emergency hospitalization abroad
- Doctor consultation fees
- Ambulance charges
- Repatriation (flying back to India for medical treatment)
- Coverage range: ₹5 lakh to ₹50 lakh depending on plan
Trip-related coverage
- Trip cancellation (flight/hotel cancelled due to covered reasons)
- Trip delay (compensation for delays over 6–12 hours)
- Baggage loss or delay
- Passport loss (emergency passport assistance)
- Personal liability
Adventure sports coverage
- Not included in basic plans
- Must be added separately or chosen in premium plans
- Covers: trekking, scuba diving, skiing, bungee jumping, paragliding
What to recommend by destination
Europe (Schengen countries)
- Minimum: €30,000 medical + repatriation (visa requirement)
- Recommended: €50,000 medical + trip cancellation + baggage
- Cost: ₹1,000–₹3,000 for 10-day trip
USA/Canada
- Minimum: $50,000 medical (healthcare is extremely expensive)
- Recommended: $1,00,000 medical + trip cancellation + baggage delay
- Cost: ₹2,000–₹5,000 for 10-day trip
Southeast Asia (Thailand, Singapore, Bali)
- Minimum: $25,000 medical
- Recommended: $50,000 medical + adventure sports (if applicable) + baggage
- Cost: ₹500–₹2,000 for 7-day trip
Middle East (UAE, Oman)
- Minimum: $25,000 medical
- Recommended: $50,000 medical + trip cancellation
- Cost: ₹500–₹1,500 for 5-day trip
Domestic (India)
- Not mandatory but useful for: trip cancellation, medical evacuation from remote areas (Ladakh, Northeast), baggage loss on flights
- Cost: ₹200–₹500 for 5-day trip
Popular insurance providers in India
| Provider | Strengths |
|---|---|
| ICICI Lombard | Good claim settlement, wide network |
| Bajaj Allianz | Affordable, covers adventure sports |
| HDFC Ergo | Good for families, covers pre-existing conditions (premium plans) |
| Care Health (formerly Religare) | Budget-friendly for Southeast Asia |
| Tata AIG | Good for Schengen, fast certificate issuance |
| Digit Insurance | Quick online purchase, good for last-minute |
How to integrate insurance into your packages
Option 1: Bundle it (recommended)
Include basic travel insurance in your package price. The cost (₹500–₹2,000) is minimal compared to the package value, and it:
- Reduces liability for you
- Shows you're a professional agent who thinks of everything
- Adds perceived value
Option 2: Offer as add-on
Present insurance as a line item with "recommended" tag. Some clients will decline, but at least you've documented that you offered it.
Option 3: Mandatory for certain destinations
For Schengen packages, insurance is non-negotiable anyway. Frame it as: "Insurance is included as it's required for your visa application."
Commission for agents
Most insurers offer 15–30% commission on travel insurance sold through agents. For a ₹2,000 policy, that's ₹300–₹600 per booking. Not a fortune individually, but across 50 bookings/month, it adds up to ₹15,000–₹30,000/month in extra income with zero additional effort.
Handling claims - your role as agent
When a client faces an issue abroad:
- Emergency number: Ensure client has the insurer's 24/7 helpline saved before travel
- Documentation: Advise client to collect ALL receipts, medical reports, police reports (for theft)
- Timely reporting: Most policies require incidents reported within 24–48 hours
- Your involvement: You're not obligated to manage claims, but helping the client navigate the process builds loyalty
Common client objections (and responses)
| Objection | Response |
|---|---|
| "Nothing will happen to me" | "It's ₹1,500 for a ₹2,00,000 trip. If something does happen, medical bills abroad start at ₹50,000 for a simple consultation." |
| "I already have health insurance" | "Domestic health insurance rarely covers international medical expenses. Even if it does, it won't cover trip cancellation or baggage." |
| "It's too expensive" | "For your 7-day trip, insurance is ₹1,200 - less than one restaurant dinner in [destination]." |
| "I'll buy it myself" | "I can include it in your package at our agent rate, which is usually 10–15% cheaper than retail." |
Things to watch out for
- Pre-existing conditions: Most basic plans exclude them. If your client has a known condition, they need a premium plan with declaration.
- Adventure sports exclusion: If your client is doing scuba, paragliding, or skiing, confirm the policy covers it. Default plans usually don't.
- Age limits: Premiums increase significantly for travellers above 60–65. Senior citizens may need specialized plans.
- Policy start date: Must cover from departure date to return date. For Schengen, add 15 days buffer.
- Alcohol-related incidents: Most policies void claims if the insured was intoxicated during the incident.
How TripDraft helps
Add travel insurance as a line item in your quotes with the recommended coverage level for each destination. The PDF shows clients exactly what's covered and positions you as a thorough, professional agent.