Q. As a frequent traveller, I find single-trip travel insurance costly. Could you explain the benefits of an annual multi-trip travel insurance policy and how it compares to single-trip plans? Additionally, how can I maximise the value of an annual policy?
-Raman
Raman, for a frequent traveller like you, an annual multi-trip travel insurance policy can be a game-changer in terms of convenience and cost savings. Travel insurance is typically categorised into two main types: single trip and multi-trip policies. A single-trip insurance policy is purchased for individual trips and provides coverage only for that specific journey. Once the trip ends, the validity of the policy also ceases. In contrast, an annual multi-trip policy, or annual travel insurance policy, offers coverage for multiple trips you undertake within a year ensuring that every journey is protected under a single plan. Depending upon the insurer, each trip is covered for a specific duration, typically up to 180 days, depending on the policy terms.
Benefits
The most significant advantage of an annual multi-trip policy is its convenience. It eliminates the hassle of purchasing a new policy every time you travel, which can be time-consuming. With just one policy, you are automatically covered for all eligible trips within the year. This simplifies your travel preparation and ensures protection worldwide, no matter where you are travelling. Whether you are on a business trip, a vacation, or visiting family abroad, your insurance remains active, even for last-minute plans.
From a financial perspective, an annual multi-trip policy is much more economical if you travel frequently. The cumulative cost of buying single-trip policies for multiple journeys can be significantly higher than opting for one annual plan. By consolidating coverage for all your trips into a single policy, you save money while enjoying comprehensive protection.
Coverage
An annual multi-trip travel insurance policy has various benefits, especially for frequent travellers. These policies typically cover travel disruptions such as flight delays, missed connections, or trip cancellations, compensating travellers for unforeseen flight schedule changes or unexpected cancellations due to illness or emergencies. It also addresses issues like loss of belongings, including baggage or essential documents like your passport, and assists in obtaining replacements. Furthermore, the policy encompasses medical expenses incurred while travelling, including hospitalisations and emergency evacuations in cases of serious illness or injury. Many policies offer financial protection in case of theft or burglary of personal belongings during the journey. Apart from all these benefits, one of the standout features of a multi-trip policy is that your insurance coverage limit is reinstated at the start of each new trip. This means that even if you make a claim during a previous trip, your policy resets, allowing you to claim the same coverage again on your next trip.
Tailor your policy
Raman, if you would like to maximise the value of an annual multi-trip policy, it’s essential to tailor the coverage to suit your specific travel needs. For instance, if your travels involve adventure sports or require coverage for business equipment, you can opt for relevant add-ons to enhance your policy benefits. Understanding the policy’s coverage limits, particularly for medical expenses, trip cancellations, or baggage loss, is essential to ensure the policy aligns with your travel requirements.
For international travel, ensure the policy covers all the regions you plan to visit. Additionally, most insurers offer 24/7 emergency assistance services, which can help you manage medical emergencies, arrange for replacements of lost documents, or provide support during disruptions, ensuring a smooth travel experience.
An annual multi-trip travel insurance policy is a smart investment that ensures seamless protection across all your journeys. Beyond just cost savings and convenience, it offers you the confidence to travel worry-free, knowing that unexpected disruptions, medical emergencies, or lost belongings won’t derail your plans. By customising the policy to fit your specific travel patterns and leveraging the right add-ons, you can maximise its benefits. With such a policy in place, you can focus on what truly matters, exploring new destinations, building experiences, and making the most of every trip.
The writer is MD&CEO, Bajaj Allianz General Insurance
Published on June 7, 2025
