Study abroad gone wrong? Insurance now covers visa, job loss for Indians

Business Standard

22-05-2025

When Sakshi, a student from Lucknow, moved to Canada to study business administration at a private college in Quebec, she thought she had her future sorted. But in 2023, the college shut down after running out of funds. With no alternative, Sakshi had to return to India, and her family had to pay for her return flight and resettlement.
To protect against such experiences, Indian insurers are now offering travel plans that cover events like visa cancellation, university closures, and job loss — risks that were not usually accounted for in traditional student insurance.
What's covered in these new insurance policies
'For Indian students studying abroad, navigating potential visa cancellations or job loss requires specialised insurance coverage,' said Vivek Chaturvedi, chief marketing officer and head of direct sales at Digit Insurance.
Most plans still revolve around emergency medical coverage, but newer offerings also cover situations that disrupt a student's academic stay abroad.
'For instance, if a university is declared insolvent, some insurance policies may cover the student's cost for temporary accommodation and a one-way economy ticket home,' said Chaturvedi. 'The same applies if their visa is revoked as a result of the university's closure.'
Ajay Shah, head of distribution at Care Health Insurance, added, 'Coverage typically kicks in once the student has entered the host country. In the event the university becomes insolvent during the course, policies cover accommodation expenses and/or return travel to India.'
Limitations and exclusions
Like all insurance, these policies come with exclusions. Some insurers restrict coverage for students going to countries with diplomatic tension or immigration instability. 'Policy issuance may be limited in such cases,' said Parthanil Ghosh, executive director at HDFC ERGO General Insurance.
Ghosh said students should always read the policy document carefully. General exclusions often include:
* Self-inflicted injury or suicide
* Injuries sustained during adventure sports
* Terrorism and war-related incidents
'Visa revocation due to a student's own fault — such as academic misconduct, disciplinary issues, or exceeding work-hour limits — is excluded from coverage,' said Meet Kapadia, head of travel insurance at Policybazaar.
Kapadia added that immigration restrictions or visa bans imposed by the destination country are also not covered. 'Similarly, if the student fails to meet course requirements or engages in illegal activity, the insurer will deny the claim,' he said.
Fine print on job loss and reimbursements
Job loss is not automatically included in most student insurance packages, but some insurers offer it as an optional add-on. 'It's intended for involuntary job loss — like layoffs due to restructuring or company shutdowns. It won't apply to poor performance or resignation,' Kapadia said.
Shah said reimbursements linked to university insolvency usually include one-way return airfare and temporary lodging. However, coverage is capped — often at $7,500 — and only applicable in certain circumstances.
For instance, HDFC ERGO only provides repatriation in case of accidental death, Ghosh said. Medical evacuation is covered during health emergencies.
Making a claim: documents required
To file a claim under these policies, students typically need:
* A declaration confirming compliance with university rules
* A copy of the complaint filed against the university
* Original receipts for travel and lodging expenses
* A valid visa showing the same university name
For medical or death-related claims:
* Original bills and prescriptions
* Hospital or physician's certificate
* Death certificate or police FIR, if applicable
Kapadia said, 'Most claims take 7 to 30 working days to be processed, depending on the insurer and whether all required documents are submitted.'
Sample plans for students
Digit Insurance offers the 'On The Move' policy for students, which includes coverage for return travel and accommodation in case of medical emergencies, natural calamities, or family issues. The plan also covers up to $1 million in medical expenses and offers benefits like trip cancellation, loss of personal belongings, and study interruption.
Care Health Insurance has two products: 'Student Explore' and 'Student Explore Health Unlimited'. These cover:
* Medical and dental care
* Mental health and sponsor protection
* Bail bond assistance
* Unlimited sum insured in some plans
* Coverage for trip interruptions, liabilities, and study disruption
Reliance General's student travel insurance includes coverage for medical evacuation, passport loss, trip delays, and emergency repatriation. Life-threatening pre-existing conditions may also be covered if declared in advance.
Niva Bupa's TravelAssure Student Plan offers hospitalisation, outpatient treatment, and maternity benefits as an option. The plan also includes sponsor protection, study interruption, and compensation for lost baggage or documents.
What's excluded
Across most policies, the following are excluded:
* Self-harm or substance abuse
* Pre-existing conditions not disclosed earlier
* Illegal activity or criminal charges
* Travel to countries under advisories or sanctions
* Medical travel against advice of a doctor
Premiums vary depending on:
* Age of the student
* Destination country
* Trip duration
* Coverage selected
With more Indian students pursuing higher education in countries like the US, UK, Canada, and Australia, the need for robust insurance coverage has grown. Traditional international insurance policies are often expensive and do not cater to the specific needs of Indian students.