Applying for Schengen visa? Get add-on insurance to avoid monetary loss

If you purchase travel insurance that covers trip and/or flight cancellations, you are eligible for a refund on flight cancellations

As summer approaches, countless Indians are planning trips to Schengen countries. However, prolonged waiting times, uncertainty regarding visa approvals, and visa denials have left many travellers feeling frustrated and anxious. Recently, Delhi-based Mayank Sharma lost Rs 3.5 lakh in flight and hotel bookings after his Schengen visa was denied.

Here's what Indian travellers must know:

Take additional travel insurance

"There are currently a few plans available that offer the added benefit of refunding visa fees in case of rejection," says Manas Kapoor, Business Head – Travel Insurance at Policybazaar.com. If a visa is rejected due to circumstances beyond the customer's control, and all necessary documents were submitted according to embassy guidelines, the customer is eligible to make a claim.

 

Refunds for flight cancellations

If the visa gets rejected, only the visa fee is refunded. However, if the customer has purchased travel insurance that covers trip and/or flight cancellations, they are eligible for a refund on flight cancellations. The specific reasons for which they can avail of refunds include sickness, injury, or death of the traveller, a travelling companion, or an immediate family member.

Note: Insurance refund typically applies when the cancellation is due to reasons beyond the traveller's control, such as unforeseen emergencies or medical situations. If the flight cancellation occurs for reasons unrelated to these specific circumstances, the eligibility for a refund may vary based on the terms and conditions of the insurance policy.

The same conditions apply to non-refundable hotel fees too, says Manas.

Travel insurance plans for Schengen visas

According to the embassy, customers must have a minimum coverage of either 30,000 euros or an equivalent $50,000 plan. This not only fulfils the visa requirement but also ensures adequate protection while travelling in European countries.

"Interestingly, there has been a 40 per cent decrease in customers opting for euro plans, partly due to embassies now accepting coverage in dollars, with many choosing dollar plans instead," Manas explains. 45-50 per cent of PolicyBazaar customers travelling to Europe this season are opting for even higher sum insured coverage, such as $200,000 and $250,000.

Travel insurance plans

For instance: The travel insurance plans for a 6-day trip to the Netherlands

Care offers the "Explore Gold - Excluding US & Canada" plan with a premium of Rs 839, Niva Bupa provides the "Travel Assure" plan at Rs 494, Bajaj Allianz's "Travel Ace Lite - Gold" plan costs Rs 513, and ICICI Lombard's "Gold" plan is priced at Rs 874.

Coverage amounts range from Rs 1,67,02,190 to Rs 2,08,77,737. Add-ons for visa fee refunds are available with Care at Rs 1,418 and Niva Bupa at Rs 46, but not with Bajaj Allianz and ICICI Lombard. Benefits across all plans include baggage loss (Rs 41,755 to Rs 83,510), loss of passport (Rs 25,053), and trip cancellation (Rs 41,755 to Rs 208,777).

Significant losses due to visa rejections

"Too many applicants faced with a proportionately lower number of visa processing staff is the biggest problem faced by Indian applicants," say immigration lawyers Miriam Fozia Rahman and Khalid Arshad.

"This leads to various logistical and administrative issues relating to overwhelming the system of appointments, scrutiny, and processing of visa applications," they add.

According to Teleport, an integrated logistics solutions provider, over 100,000 Indians faced Schengen visa rejections in 2022. This resulted in a loss of Rs 87 crore due to non-refundable trip expenses.

"This is an institutional issue to be addressed by the sovereign countries and their dedicated visa offices. Streamlining services, hiring additional staff, and investing in AI-powered technologies to schedule online appointments and provide real-time wait times are necessary steps. Efficient visa offices should consider these measures to make the scheduling of visa appointments easier," Miriam Fozia Rahman and Khalid Arshad said.