By Sanjiv Bajaj
A few weeks back, a client called our office while waiting at an international airport. His flight had been delayed indefinitely after airlines began rerouting certain international sectors following developments in West Asia. His question was simple: If the trip gets cancelled, will my travel insurance actually cover this?
It’s a question we’ve heard more than once over the years. Global developments, whether geopolitical tensions, sudden travel advisories, or disruptions to supply chains have a way of entering everyday life much faster than we expect. For most households, these events don’t appear first in policy documents or financial plans. They appear in the form of a delayed flight, a rescheduled surgery, or a sudden financial uncertainty.
Insurance, of course, is designed precisely for moments when life doesn’t go according to plan. But what many people discover only when they need to make a claim is that their policy hasn’t been reviewed in years. A simple review across three areas of coverage can make a meaningful difference.
Travel Insurance: The Details That Matter When Plans Change
Travel insurance is often purchased quickly, sometimes minutes before a journey begins. Most travellers are aware that such policies cover medical emergencies abroad or lost baggage. But fewer realise that coverage for broader disruptions the kind global events often trigger can vary significantly. Over the past few years, we have seen travellers face situations ranging from sudden travel advisories to route diversions and emergency evacuations. While insurance cannot eliminate uncertainty, it can soften the financial impact if the coverage has been chosen carefully.
A few aspects travellers may want to look at more closely include whether the policy provides protection against cancellations triggered by official advisories, whether emergency evacuation or medical repatriation is included, and whether prepaid bookings such as airline tickets fall within the scope of coverage.
For frequent business travellers, it is also worth confirming that corporate travel policies extend to all destinations on the itinerary, particularly if routes change unexpectedly.
A five-minute review before departure can often prevent far more stressful conversations later.
Health Insurance: Has Your Cover Kept Pace With Healthcare Costs?
Another pattern I have observed over the years is how rarely people revisit their health insurance once the policy has been purchased.
Healthcare costs, however, evolve continuously. Medical inflation in India has been estimated in the low-to-mid teens for several years now. What felt like a comfortable sum insured five years ago may look very different against the cost of specialised treatment today.
During the pandemic, many families also became aware of how hospital networks and treatment availability can shift under pressure. While such situations are usually temporary, they highlight why policyholders should periodically confirm where and how their coverage works.
When reviewing a health insurance plan, it can be useful to check whether the sum insured still reflects current healthcare costs, whether the policy offers restoration benefits that replenish the cover after a large claim, and whether preferred hospitals continue to be part of the insurer’s cashless network.
For families with ageing parents, an additional top-up or super top-up policy can also provide an important financial buffer.
These are small adjustments, but they can significantly improve the resilience of a family’s healthcare protection.
Life and Income Protection: The Often Underestimated Foundation
While travel and health coverage often receive attention, the most fundamental layer of protection is still income security.
Global economic developments can sometimes influence industries, employment cycles, and business activity. For households managing home loans, education expenses, and other long-term commitments, even a temporary disruption in income can create pressure.
Yet many families purchase life insurance early in their careers and rarely review it afterwards. Over time, incomes grow, responsibilities expand, and liabilities change, but the coverage often remains the same.
A well-structured term insurance plan should ideally reflect a family’s current financial responsibilities, not those of a decade ago. In addition to life cover, riders such as critical illness protection or disability cover can provide an additional safety net by offering lump-sum support during major medical events.
Some families also find it useful to think beyond insurance and ask a simple question: could the household comfortably manage three to six months of income disruption if required?
This type of reflection often strengthens financial planning far more than any single product decision.
Preparedness Works Best Before It Is Needed
Insurance rarely feels urgent until the moment it becomes necessary. Yet the best time to review coverage is always before circumstances demand it.
Policy conditions evolve, hospital networks change, and personal financial responsibilities grow with time. Taking a short pause once a year to revisit these details can help ensure that protection keeps pace with life itself.
Global developments will always remain outside our control. What families can control, however, is how prepared they are when uncertainty arrives.
And sometimes, preparedness begins with nothing more complicated than opening an insurance document and reading it again, this time with fresh eyes.
(The author is Joint Chairman & Managing Director, BajajCapital Ltd)
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