Medical evacuation insurance a must for your foreign travel: Here's why

You're trekking in Switzerland's Kandersteg valley when your foot gets stuck in a rocky gap. You fall, and the pain in your leg confirms your worst fear — it's fractured. The nearest medical facility that can properly treat your injury is miles away, only accessible by air ambulance. It's moments like these that remind you why having medical evacuation insurance is pertinent.

Why consider medical evacuation insurance?

Medical emergencies abroad can be costly, particularly if you need to be transported to a hospital. This is where medical evacuation insurance comes into play. It helps cover the expenses of getting you to the nearest suitable medical facility and, if necessary, back home.

 

Mahesh Yelapure, Head of Health Underwriting & Health Claims at Go Digit General Insurance, puts it simply: "Medical evacuation insurance is part of broader travel insurance coverage. It complements other protections like medical expenses, accidental death, and hospitalisation."

What does emergency medical evacuation insurance cover?

Emergency medical evacuation insurance, often referred to as "medevac," is designed to cover the cost of transporting you to the nearest adequate medical facility. It may also cover your transportation back home if your doctor deems it necessary.

"There are two types of medical evacuation insurance—Overseas Medical Evac and Domestic Evac," explains Narendra Ganpule, partner at Grant Thornton Bharat. "Overseas Medical Evac is relevant for international travel, while Domestic Evac is for situations within the country."

How is medical evacuation insurance integrated into travel plans?

Medical evacuation insurance is usually included under comprehensive travel insurance policies. This makes it a part of the broader protection you have while travelling, rather than a standalone purchase.

Yelapure explains, "For example, under Digit’s travel insurance plan, the Sum Insured (SI) could be in the range of $50,000 to $100,000. However, the exact premium for such plans typically depends on factors like the traveller's age, destination, trip duration, and any additional coverage options."

What does medical evacuation insurance cost?

The cost of medical evacuation insurance can vary depending on several factors:

Transportation cost: The cost of getting you to the nearest suitable medical facility.

Nature and severity of the injury: How serious your condition is.

Nearest place of safety: The location of the nearest facility with appropriate medical supplies.

Enroute medical services: Any medical services required during transport.

Common coverages under medical evacuation insurance, subject to your policy's terms, might include:

Emergency transportation: This coverage provides for transportation to the nearest appropriate medical facility, whether by ambulance or air evacuation.

Return to home country: If your doctor recommends that you return to your home country for further medical treatment, the medical evacuation benefit can help cover the associated transportation costs.

Medical escort: If you need medical care during your return journey, this benefit typically covers the expenses for a nurse, doctor, or other healthcare professional to accompany you. It also includes their related costs, such as accommodation, meals, and their return trip.

Family or friends' transportation: If you are travelling alone, some policies may cover the cost of a round-trip ticket, accommodation, meals, and other transportation expenses for a family member or friend to stay with you while you are in the hospital, usually after a certain length of stay, such as seven days.

Companion reimbursements: If someone is travelling with you and wishes to remain close during your treatment, they may be reimbursed for expenses such as lodging, meals, and transportation.

Children's transportation: If you are hospitalised while travelling with children, this benefit can arrange for their transportation back home, although a minimum hospital stay might be required for this to apply.

Repatriation of remains: In the unfortunate event of death during your trip, this benefit can cover the costs of transporting your remains home, as well as related expenses like cremation, embalming, or other end-of-life arrangements.

Yelapure provides an example, saying, "Under Digit's Double Secure Asia travel insurance plan, for a 30-year-old travelling to an Asian country (excluding Japan and Korea) for 30 days, a plan with a sum insured of $15,000 would range from Rs 500-550. It offers comprehensive travel coverage, including medical evacuation."

For domestic situations, the insured amount typically ranges from Rs 1 lakh to Rs 5 lakh for medical evacuation. Ganpule points out that "the insurer will arrange road or air ambulance services to safely transfer an individual from one hospital to another."

Policybazaar has provided some travel insurance plans that you can consider:

Destination: USA

Duration: 14 days

Age of traveller: 55 years

Cover amount: $250,000

1. Tata - Travel Guard Plus: Rs 2,397

2. Niva - Travel Assure: Rs 1,918

3. Reliance - Value Care: Rs 2,687

4. Care - Explore Gold: Rs 2,575

5. ICICI Lombard - Gold: Rs 2,062

6. Digit - Happy Traveller Double Secure Plus: Rs 2,550

How do you claim medical evacuation insurance?

If you find yourself in need of a medical evacuation while travelling, the process is simple.

Meet Kapadia, Head of Travel Insurance at Policybazaar, advises, "In case a traveller needs medical evacuation, they should contact the insurer or broker immediately. After completing the required formalities, the claim can be approved."

The insurance Assistance Service Provider will arrange the evacuation using the most suitable means, depending on the urgency and location of the accident or illness.

"Depending on where you are, the evacuation could involve an air ambulance, land ambulance, airplane, or even a train," adds Dr Santosh Puri, Senior Vice President of Health Product and Process at TATA AIG General Insurance. He recalls a case where "TATA AIG helped airlift and evacuate a customer from Tajikistan back to India due to serious health issues and the lack of medical facilities."

Are there geographical limitations?

Yes, there are. Medical evacuation insurance usually does not cover travel to or through countries under United Nations (UN) sanctions, embargoes, or active war zones.

"For instance, under Digit’s policy, travel insurance to countries like Afghanistan, Congo, Cuba, Bangladesh, Pakistan, and Somalia is not provided," says Yelapure.

TATA AIG also restricts coverage in politically unstable or sanctioned countries.

Kapadia adds, "If a traveller goes against government advice or medical advice, or if they face a medical emergency due to prohibited substances, the medical evacuation can be denied."

How has the demand for medical evacuation insurance changed?

The demand for medical evacuation insurance has seen mixed trends.

"Health insurance and the insurance industry, in general, have seen growth since the Covid-19 pandemic. There’s been an increase in health and travel insurance policies due to growing health awareness, high medical inflation, and the ease of issuing policies digitally," says Puri.

"Also, with the Indian economy growing rapidly, more people are travelling abroad for education and tourism. As a result, travel insurance and medical evacuation cover are becoming more sought after," Puri adds.

However, Ganpule from Grant Thornton Bharat notes that the demand for medical evacuation insurance hasn't increased as much as one might expect. "Awareness is still low, and unlike in the developed world, people in India often rely on personal networks in emergencies rather than calling an insurer. There's also a fear of high costs. For example, if an air ambulance costs Rs 10 lakh and your insurance covers only Rs 2 lakh, you're left to pay the remaining Rs 8 lakh out of pocket."

He explains, "many people at the lower end do not see the benefit of medical evacuation insurance. But those who buy higher cover or sum assured do. Many insurers offer special features like emergency air ambulance for affluent customers. However, medical evacuation insurance is usually not bought separately and isn't available as a standalone policy. Some companies have started offering it as an add-on or rider benefit, especially in premium health products."

Policyholders should be also aware of certain exclusions. For instance, medical evacuation due to adventure sports is generally not covered.

Ganpule warns that "pre-existing conditions, like heart disease, are often not covered by medical evacuation insurance. Some permanent exclusions, such as cancer, where there's a high chance of relapse, are also not included."