Didn't buy travel insurance? Some premium cards cover overseas medical emergencies

Generally, high-end credit cards from Amex and HDFC come with travel Insurance inbuilt where they have partnered with the insurers and cover the same benefits

Thirty-five year old Arjun Singh decided to head to Thailand last minute when the country announced a waiver on visas for Indians till June 2024. Since it was a spur-of-the-moment decision, Arjun had forgotten to opt for an overseas travel insurance plan. During the trip, Singh had an allergic reaction to lobster and had to be rushed to the hospital and was admitted overnight at the Bangkok Hospital. His wife, however, was not very worried about the huge medical bill because she had a Platinum credit card from American Express, which also covered any emergency medical hospitalisation anywhere in the world. The only condition was that the card company had to be notified at the time of hospital admission, and all the hospital documents had to be emailed to the company within 30 days of hospitalisation. 

While travelling, there’s always the chance of a lot of things going wrong. This is why it’s always a good idea to purchase travel insurance online beforehand to provide a safety net to fall back on in case of any unforeseen incidents such as theft of luggage, injury caused due to any risky adventure activity, etc. In India, Currently, not all credit cards offer travel insurance. While some do offer basic coverage, their benefits are often limited as compared to traditional travel insurance policies available online.Credit card insurance policies usually tend to cover the expenses of only the cardholder, whereas, travel insurance policies bought online have the option to provide coverage to other co-travellers under the policy.

"Complimentary insurance cover for overseas medical emergency hospitalisation is generally offered with premium credit cards and covers any kind of bodily injury or sudden unexpected illness during international travel. This feature can only be availed by primary cardholders and that too only when the flight booking for that trip has been made using the same card. Card providers may also impose other eligibility conditions. For example, the card should have been used at least once in the past 30 days or the medical emergency should fall within 7 days of the international trip," cautioned Rohit Chhibbar, Head of Credit Cards Business, Paisabazaar.

In most cases, the cardholder is required to directly contact the partner insurance company to register their insurance claim within the given timeline after the incident. The claim procedure and conditions vary depending upon the credit card provider and the card type you own.

Here are some credit cards that do cover medical emergencies too: 

1. HDFC Bank Diners Club Black Credit Card

Annual Fees: Rs. 10,000 (Waived off on annual spend of Rs. 5 lakh)

Emergency overseas hospitalisation cover of Rs 50 lakh

The card covers any medical expenses because of any Bodily Injury or sudden unexpected sickness only for international travel outside India. Medical expenses incurred due to any pre-existing illness will not be covered. Claim payment to the customer will be made in INR as per applicable exchange rate as on the date of payment to hospital / medical establishment. 

2. American Express Platinum Card

Joining Fee: Rs. 60,000

Overseas medical insurance of $50,000 for the first 7 days of the trip

Puneet Bhatia, Vice President, Acquisition and Product Management, American Express Banking Corp explains the insurance benefits that come with the card: 

Platinum Charge

Air Accident Insurance Cover of 5 Cr.

Card Members can use their card with confidence the world over, knowing they have the powerful backing of American Express no matter where they are 24x7. The American Express Platinum Card Membership gives protection to Card Members when they travel and also saves them travel insurance premiums. Under Air Accident Cover, the primary card is insured with the sum of Rs 50,000,000 when the ticket is purchased on their card.

Overseas Medical Insurance of $50,000

 Medical Insurance: Complimentary* Overseas Medical Insurance for US$ 50,000 for the first seven days of the trip, when travelling abroad with tickets purchased with Platinum Card

Cover against inconveniences like Loss or delay of Baggage, Loss of Passport

Purchase Protection: Rs 5 Lacs

Cover your belongings like Consumer Durables for any loss or damage even in residential premises for the first 90 days

Platinum Reserve

Air Accident Insurance Cover of 1 Cr

 Card Members are automatically insured against loss of life in an air accident for up to Rs.1 crore when they purchase their air ticket with Platinum Reserve Credit Card.

Standard Chartered Ultimate Credit Card

Joining Fee: Rs 5000 

Emergency medical expenses coverage of up to $25,000 with a deductible of $100

Marriott Bonvoy HDFC Bank Credit Card

Joining Fee: Rs. 3,000

Emergency medical expenses cover of up to $18,750

HDFC Regalia Gold Credit Card

Joining Fee: Rs. 2,500 (Waived off on annual spend of Rs 4 lakh)

Emergency overseas hospitalisation cover of up to Rs. 15 lakh

There are various shortcomings when it comes to the sort of coverage offered by credit card travel insurance when compared to traditional travel insurance offered online. Trip cancellation policies offered under credit card insurance are often limited to certain circumstances such as injury or death. Death due to any pre-existing health condition is not covered unlike that offered under a travel insurance plan. 

"Reimbursement of expenses incurred due to any unforeseen accident too is limited under the terms and conditions. Injuries caused by adventure activities such as kayaking, horse riding, etc are not covered under such plans. Credit card insurance policies usually tend to cover the expenses of only the cardholder, whereas, travel insurance policies bought online have the option to provide coverage to other co-travellers under the policy.The geographical range of protection offered under credit card insurance is often limited when compared to online travel insurance," according to HDFC Ergo.

"Generally, high-end credit cards from Axis Bank, Amex, and HDFC come with Travel Insurance inbuilt where they have partnered with the insurers and cover the same benefits. Terms and coverages are generally similar to what is being offered by the normal retail product with benefits such as coverage for trip cancellations, delays, medical expenses, missed connections, and loss of checked-in baggage. However, it is always recommended to travel overseas with appropriate travel insurance that covers you comprehensively," said Manas Kapoor, Business Head - Travel Insurance, Policybazaar.

Theft or loss of high-value goods such as jewellery and electronics among other belongings might also not be covered under credit card travel insurance. It is more than likely that one’s credit card insurance will only cover the purchases made with the credit card during the period of travel.

"If you’re specifically looking for health insurance coverage in India, you should consider purchasing a separate health insurance policy. Health insurance policies are designed to cover medical expenses, including hospitalization, surgery, and other related costs. However, relying solely on credit card benefits for medical coverage may not be sufficient. It’s advisable to have a dedicated health insurance policy for comprehensive coverage," said Adhil Shetty, CEO, Bankbazaar.com