You pick up a hatchback at Zurich airport, or a scooter outside a guesthouse in Bali. An hour later there is a dent in the bumper, or a scraped knee and a cracked mirror. The next question is who pays, and for many Indian travellers the honest answer is that nobody checked before the trip.
What your policy usually pays for after a crash
Most people assume their travel insurance will step in after a road accident abroad. It often does, but only for part of the damage. Overseas policies sold in India are built around the traveller: your medical bills, your emergency evacuation and, in many plans, a lump sum if you are seriously injured.
If you are hurt in a crash, emergency hospital treatment usually falls under the medical expenses section, subject to the policy’s conditions and deductible. Many plans also include personal accident cover, which pays a fixed amount for accidental death or permanent disability. Fault matters less here than legality. The insurer will want to know that you were allowed to drive that vehicle in that country, and that you were sober when you did.
That is roughly where the travel policy’s role ends. The rental car, the other driver and the other driver’s car are a separate problem, and they are often the expensive part.
What it usually leaves out
The biggest surprise for many buyers is the personal liability section. When you compare international travel insurance plans, personal liability usually appears among the benefits. Read the exclusions, though, and you will usually find that liability arising from owning, driving or using a motor vehicle is excluded. If you hit another car or injure a pedestrian, that section is unlikely to respond.
Damage to the rental car itself is the second gap. Standard overseas policies in India generally do not pay for repairs to a hired vehicle. Some insurers offer cover for the rental excess as an optional benefit, but it is far from universal, so check the policy schedule rather than assuming it is there.
Belongings left in the car are a third point. Baggage cover often excludes items stolen from an unattended vehicle, or attaches strict conditions, such as the items being locked out of sight in the boot.
Where the rental company’s cover comes in
With the travel policy stepping back, the rental agreement does most of the work. Rental rates in many countries include a collision damage waiver (CDW), which limits what you owe for damage to the car to a fixed excess. That excess can still be large, and rental desks sell an extra waiver to reduce it to zero or close to it. Read the waiver’s own exclusions as well, because tyres, windscreens and the underside of the car are often carved out.
Third-party liability works differently from country to country. In the European Union, motor insurance covering third parties is compulsory, so a rental car comes with it. In the US, minimum liability levels are set by each state and can be low, which is why rental counters there offer supplemental liability insurance. Before you decline any add-on, ask exactly what the base price already includes.
Your licence decides more than you think
An accident claim often turns on paperwork. Many policies exclude injuries or losses that happen while you drive without a valid licence for that country, or under the influence of alcohol or drugs. Some countries accept an Indian licence for short visits, while many expect an International Driving Permit alongside it. In India, the permit is issued by your regional transport office and is valid for one year. Check which format the destination recognises, too. India issues permits under the 1949 Geneva Convention, and some countries, Vietnam being the clearest example, recognise only permits issued under the 1968 Vienna Convention. There, an Indian permit may not make you a legal driver, which directly affects any claim.
Two-wheelers need extra caution. Renting a scooter in Thailand or Bali is easy, often with little more than a cash deposit. But if your Indian licence or permit does not cover motorcycles, or you ride without a helmet, a policy may decline the medical claim that follows. How easy it was to hire the vehicle tells you nothing about whether you are covered to ride it.
What to do after an accident
Call local emergency services if anyone is hurt, and get a police report even if the damage looks minor. Rental companies and insurers often ask for one, and it is far harder to obtain later. Tell the rental company straight away and follow its accident procedure, which is usually printed on the agreement or kept in the glovebox.
If you need treatment, call your travel insurer’s assistance helpline before or soon after you reach the hospital. Photograph the vehicles, the road and any documents, collect the other driver’s details, and keep copies of every bill you pay. Do not admit fault or sign anything you cannot read, and ask for a translation first.
One last practical point: traffic keeps to the left in the UK, Australia and Singapore, as it does in India, but to the right in the US and most of Europe. If you are used to Indian roads, give yourself time to adjust in a right-hand-traffic country, and avoid driving straight off a long-haul flight.
