US Travel Insurance Online: How Indians Can Buy Easily After Tax Changes

Travelling to the United States is exciting, but healthcare costs there can be serious. Buying US travel insurance online India is a smart way to protect your trip and your wallet. Recent tax updates in India have also made it simpler to understand what you actually pay and when additional charges apply.

Here is a clear, human-to-human guide to help you buy travel insurance USA online with confidence.

What Changed in Taxes and Why it Matters

Here you will explore what changed in taxes and why it matters:

• 0% GST for individual “health insurance business” policies from 22 September 2025: 0% GST for individual “health insurance business” policies from 22 September 2025: The latest GST notification exempts individual policies under the health insurance business. The definition of this category now explicitly includes travel cover and personal accident cover, which means many standalone individual travel policies issued in India fall under this exemption. If you are buying US travel insurance from India, this applies when the insured is an individual or a family, not a group.
• Effective date confirmed: The GST Council’s recommendations take effect from 22 September 2025. If your policy is billed on or after that date and qualifies as above, the invoice should reflect the revised rate.
• TCS under LRS is separate from GST: Tax Collected at Source (TCS) applies to outward remittances under the Liberalised Remittance Scheme (LRS) and to overseas tour packages. The Budget 2025 raised the annual TCS threshold on LRS remittances from ₹7 lakh to ₹10 lakh. If you are paying an Indian insurer in Indian Rupees for a domestic policy purchase, that is not an LRS remittance, so TCS generally does not apply. If you pay a foreign insurer directly in foreign currency, or if your insurance is bundled inside an overseas tour package, LRS or tour-package TCS rules can apply.

Bottom line: If you purchase an individual travel policy online in India and an Indian insurer raises your invoice to you as an individual or family, you should see 0% GST from 22 September 2025 and no TCS, as there is no outward remittance involved in this transaction. Always check your invoice to confirm the tax line item.

Who Should Consider US Travel Insurance From India

Here, you will explore who should consider US travel insurance:

• First-time visitors, students, and frequent business travellers
• Families travelling with children or older parents
• Travellers planning adventure activities or multiple domestic US flights
• Anyone with pre-existing conditions who needs appropriate disclosures and add-ons

How to Buy US Travel Insurance Online in India

Here you will explore how to buy international travel insurance online India:

1. Shortlist Plans For The US: Use filters for destination, trip duration, single-trip or multi-trip, and family size.
2. Pick Sum Insured Wisely: US healthcare is expensive, so choose a limit that aligns with hospital costs in the states you will visit.
3. Disclose Pre-Existing Conditions: Answer medical questions honestly to avoid claim disputes.
4. Check the Network and Claims Process: Prefer cashless assistance networks with 24/7 helplines.
5. Review Deductibles And Co-pays: Lower premiums can mean higher deductibles; find your balance.
6. Understand Exclusions: Look for exclusions on adventure sports, high-risk activities, or unapproved treatments.
7. Pay in INR to an Indian Insurer: This typically keeps the transaction outside the LRS and avoids TCS, while your policy still covers you in the US.

Checklist: What to Look For in a USA Travel Policy

Here is the quick checklist of what to look for in a USA travel policy India:

• Medical cover for illness and injury during the trip
• Emergency hospitalisation and surgery are limited to US costs.
• Outpatient treatment and prescription medicines
• Emergency evacuation and repatriation
• Pre-existing conditions coverage, if offered, with clear terms
• Trip cancellation and interruption for ticket and hotel losses
• Baggage delay or loss with realistic sub-limits
• Personal liability for accidental third-party damage
• Cashless support and 24/7 assistance numbers
• Clear deductible and claims documentation requirements

Costs After The Tax Changes

Here are the costs after the tax changes:

• GST: For individual policies classified under the health insurance business, GST is nil from 22 September 2025. That can meaningfully reduce the invoice you see versus earlier bills that showed 18% GST. Group policies remain taxable and do not qualify for this benefit.
• TCS: Only relevant if your purchase involves an overseas remittance or an overseas tour package. The ₹10 lakh annual threshold applies to LRS remittances; tour packages have their own collection rules. Paying an Indian insurer in INR for your policy typically stays outside LRS, hence no TCS.

A Quick Real-World Example

You are a family of three from Kolkata planning a two-week holiday in the US. You compare plans online and buy an individual family travel cover in INR from an Indian insurer. Your invoice is dated after 22 September 2025, so the GST line shows 0% in line with the health-insurance-business exemption that includes travel cover. Since you paid domestically in INR and did not remit money abroad for this purchase, TCS is not triggered. If you had bundled the policy within an overseas tour package or paid a foreign insurer in USD, the tax treatment could differ due to LRS and tour-package TCS rules.

Common Mistakes To Avoid

Here are the common mistakes to avoid:

• Waiting To Buy Until You Fly: Buy soon after booking flights, so pre-departure covers like cancellation apply as per the terms.
• Under-Insuring For The US: Medical costs vary widely by state; choose limits that reflect US realities.
• Ignoring Exclusions: Read the list carefully, including adventure sports and pre-existing conditions.
• Assuming All Taxes Are Gone: GST relief applies to qualifying individual policies; group policies and tour packages follow different rules.

Final Thoughts

For Indian travellers, buying US travel insurance online has become simpler after the tax changes. Suppose you purchase a qualifying individual policy in India. In that case, your invoice should reflect 0% GST from 22 September 2025. Paying in INR to an Indian insurer usually keeps TCS out of the picture. Always verify your invoice date, policy classification, and payment route, then select benefits that truly align with your US itinerary.