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Travel insurance claims ₹1 crore cover, but your medical bill payout can be much lower — here's why | Factors explained
Mint 1 hr ago·4 Oct 2026, 7:49 am
Travel insurance policies often promise a high coverage amount, but the actual cash payout for medical bills can be significantly lower. This happens because insurance companies set specific sub-limits for different types of expenses, such as room rent, ambulance charges, or specific medical procedures. These limits are usually a percentage of the total sum insured, meaning if your policy covers ₹10 lakh, the actual payout might be capped at ₹5 lakh for hospital room charges. This discrepancy between the claimed cover and the final payout is a common point of confusion for travelers.
For investors, this highlights the importance of reading the fine print before buying travel insurance. It is crucial to understand the specific sub-limits and co-pay clauses, as they directly impact the financial protection offered during a medical emergency abroad. Ignoring these details can lead to unexpected out-of-pocket expenses. Investors should monitor how insurers adjust these terms based on inflation and medical costs, as this can influence the competitiveness of insurance products in the market.
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