Travel plans often involve uncertainties such as flight delays, baggage loss, or medical emergencies. To protect cardholders from such unexpected situations, many banks offer complimentary travel insurance with select credit cards. While this benefit is extremely useful, it is often misunderstood or overlooked.
Understanding how credit card travel insurance works can help you avoid unnecessary expenses and ensure financial protection during your journey.
Credit card travel insurance is a complimentary insurance cover provided with certain travel and premium credit cards. The coverage becomes active when you book your travel tickets using the eligible credit card, subject to the bank’s terms and conditions.
Unlike standalone travel insurance, this cover is automatically linked to your card and does not require a separate premium payment.
Most credit card travel insurance policies include protection against common travel-related risks. Coverage generally includes:
Flight delay compensation for delays beyond a specified time
Loss or delay of checked-in baggage
Loss of travel documents such as passport or visa
Overseas medical emergencies and hospitalization
Accidental death or permanent disability during travel
The coverage amount and inclusions vary based on the credit card type and issuing bank.
In most cases, the travel insurance cover is activated only when travel tickets are booked using the same credit card. Some cards also require a minimum portion of the fare to be paid using the card.
The insurance coverage usually applies only during the travel period and may be restricted to international trips for certain cards.
Although useful, credit card travel insurance comes with certain limitations. These may include lower coverage amounts compared to standalone policies, limited medical coverage, exclusions for pre-existing illnesses, and restricted claim conditions.
Some policies may not cover adventure sports, high-risk activities, or long-duration travel. It is important to carefully read the policy wording before relying solely on card-based insurance.
In case of an incident, cardholders are required to inform the insurance provider within a specified timeframe. Supporting documents such as boarding passes, medical reports, baggage delay certificates, or airline communication may be needed.
Since the insurance is provided through a third-party insurer, claims are handled directly with the insurance company and not the bank.
Credit card travel insurance works well for short trips and frequent travellers who want basic coverage without additional cost. However, for long international trips, family travel, or destinations with high medical expenses, standalone travel insurance may offer better and more comprehensive protection.
Choosing between the two depends on your travel frequency, destination, and coverage requirements.
This benefit is ideal for solo travellers, business travellers, and short international trips where basic coverage is sufficient. Premium cardholders who frequently travel can save on insurance costs by making full use of this facility.
However, travellers with specific medical needs or extended travel plans should consider additional coverage.
Credit card travel insurance is a valuable yet underutilized benefit. When understood and used correctly, it can provide essential financial protection and peace of mind during travel. Always review your card’s insurance terms before travelling to avoid surprises later.