Should students purchase travel insurance in their home country or from the university abroad?

There are two financing options available to students planning to study abroad: either acquiring student travel insurance from their home country or obtaining it from the foreign university where they intend to study. The choice between these two options can significantly impact the level of protection and financial security while studying abroad.

“When a student opts for travel insurance from their home country before travelling, they receive comprehensive coverage that includes both medical and travel insurance. This means that in the event of a medical emergency or accident while travelling to nearby locations, such as a student studying in the US taking a trip to Mexico, the policy purchased from India typically covers in-patient and outpatient treatment, diagnostic tests, and, in some cases, facilitates repatriation to India if medically necessary. In contrast, insurance plans offered directly by universities often come with limitations. Most notably, medical coverage is typically limited to the university’s facilities, which can be a significant drawback, especially during travel or medical emergencies outside the campus,” said Manas Kapoor, Business Head–Travel Insurance, Policybazaar.com.

Another advantage of obtaining student travel insurance from India is the substantial savings it offers on premiums. These policies are generally more cost-effective compared to those provided by universities abroad, often costing a third less. While cost savings are significant, it is crucial to prioritize coverage. "I recommend a minimum coverage of approximately $250,000 for students studying in the U.S. and Canada and around $100,000 for those in the U.K.," said Kapoor.

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What about the claim settlement process? “Indian insurers often have an extensive network of medical service providers globally, making it easier to access quality healthcare during emergencies. Indian insurers also tend to have efficient claim settlement processes. They provide clear guidelines for claim submission and quicker turnaround times, making it easier for you to get reimbursed for covered expenses,” said Vivek Chaturvedi, CMO and Head of Direct Sales, Digit General Insurance.

Indian insurers typically offer language assistance services to help you communicate with medical professionals and navigate local systems, which might not be available with other insurers, added Chaturvedi.

Moreover, Indian policies may allow you to extend coverage if your study period is extended, a feature that may not be provided by other insurers. Additionally, some university-sponsored policies may be bundled deals that may not cater to all the requirements of the students. Therefore, it is essential for students to conduct thorough research, comparisons, and evaluations to ensure that they choose the best-suited policy that aligns with their needs and expectations.