Travel insurance: High sum insured may not cover all medical costs; check these sub-limits

A travel insurance policy with a high sum insured may appear to offer extensive financial protection, but travellers could still have to pay part of their medical bills if the policy imposes sub-limits on individual benefits.

Insurers may place separate caps on expenses such as hospital room rent, intensive care unit (ICU) charges, surgery, doctor consultations, diagnostic tests and ambulance services. As a result, the overall sum insured is not the only factor travellers should consider while choosing a policy.

The premium, extent of coverage and limits attached to specific benefits can determine the actual protection available during a medical emergency overseas.

What are sub-limits in travel insurance?

A sub-limit is the maximum amount an insurer will pay for a particular benefit, even when the policy's overall sum insured is substantially higher.

For example, a travel insurance plan could provide extensive medical coverage but impose a separate daily limit on hospital room rent or ICU expenses. If the actual cost exceeds the specified limit, the traveller may have to pay the difference, subject to the policy's terms and conditions.

Experts advise travellers to examine benefit-wise limits rather than comparing policies solely on the headline sum insured.

These limits may apply to:

• Hospital room rent per day
• ICU charges per day
• Operation theatre and surgery expenses
• Anaesthetist charges
• Doctor consultations and follow-up visits
• Diagnostic tests
• Ambulance expenses

Sub-limits may also apply to expenses related to specific illnesses or accidents. Such limits are commonly used across insurance products and allow insurers to offer policies at different price points.