Travel Insurance Vs Visitor Insurance: How They Are Different And Their Benefits And Exclusions

Safety should be your first priority when you are on an international trip – foreign land, unfamiliarity with local laws, language and customs. The list could be quite exhaustive.  

A travel or visitor insurance can mitigate your stress to quite an extent by keeping you covered and protected from unforeseen circumstances – from hospitalisation, baggage loss, theft or robbery to getting stranded because of natural disasters or events, such as civil unrest, riots, and so on.  

Two of the commonly available insurance options are travel insurance and visitor insurance, but they cater to different needs and situations.  

Here’s a look at how they differ. 

Travel Insurance: These are designed for individuals travelling overseas and offer a wide range of coverage tailored to meet the requirements of travellers. They offer all-inclusive coverage, and provide cover against medical emergencies, loss of baggage, and even passport loss. 

Visitor Insurance: These are offered by international companies. In most cases, non-residents visiting a foreign country purchase visitor insurance. While such insurance policies cover medical emergencies, they do not provide coverage for other critical aspects, such as trip cancellations, delays, or loss of personal belongings. Hence, such policies are more commonly bought while visiting countries with high healthcare costs, such as the US. 

Says Meet Kapadia, head, travel insurance: “An Indian senior citizen traveller can secure a travel insurance policy with a coverage amount of $250,000 for a two-month trip to the US for Rs 15,000-20,000, while a similar policy bought in the US might cost upwards of Rs 50,000 for the same level of coverage. This significant cost difference makes Indian travel insurance a far more attractive option, particularly for those looking to maximise coverage without overspending.”

Benefits Of Travel Insurance 

According to Kapadia, travel insurance offers a multitude of advantages that make it an obvious choice for Indian travellers.  

“The comprehensive nature of these policies ensures that travellers are well-protected against a wide range of potential issues, from medical emergencies to trip disruptions. These plans also offer coverage for multiple geographies, whereas, visitor insurance coverage is restricted to the country where you’re buying it from,” adds Kapadia.  

When Should You Buy Visitor Insurance 

Travellers who have already arrived in the destination country without travel insurance, may buy a visitor insurance. Travel insurance from India is typically required to be purchased before departure or while still on Indian soil. This means that individuals who are already abroad cannot buy a travel insurance and will have to take a visitor insurance if they want to take an insurance cover abroad. 

Things To Consider Before Buying Visitor Insurance 

Here are a few things you need to consider before buying a visitor insurance abroad. 

Medical Cover Limits: Some visitor coverage plans offer fixed benefits, meaning the plan will cover only up to a certain amount per service or treatment. This type of coverage can lead to significant out-of-pocket costs.  

Dental Coverage And Pre-Existing Conditions: Check whether the plan covers dental treatments and pre-existing conditions before purchasing visitor insurance. 

Hospital Network: The hospital network or list of covered hospitals plays a crucial role in insurance plans, as it can affect cashless claims and coverage limits. Verify the hospital network in advance. 

Trip-Related Coverages: Some visitor plans with limited coverage may not include trip-related coverages such as trip cancellation, trip curtailment, baggage loss, or baggage delay. Check for these coverages before purchasing the plan. 

Disadvantages Of Visitor Insurance 

Non-medical coverage is one of the main limitations of visitor travel insurance. Such policies do not provide coverage for non-medical issues, such as trip cancellations, delays, or loss of baggage, which is a grave concern for most travellers. This can make it less attractive for budget-conscious travellers.  

Exclusions Of Travel And Visitor Policies  

Under both insurance plans, the exclusions are the treatment of certain pre-existing medical conditions, such as cancer, heart-related conditions, and planned surgeries. If you are traveling against the government or medical advisory, that’s not covered either.