Importance of Travel Insurance

Importance of Travel Insurance

Written by Yogi (Yogendra Puranik) PhD on 01 July 2026

Traveling to Japan is a dream for many, with its rich culture, stunning landscapes, and advanced technology. However, while tourists often plan for sightseeing, food, and accommodations, one crucial aspect they sometimes overlook is travel insurance.

Japan has one of the world's best healthcare systems, but it is also expensive for foreign visitors. An unexpected medical emergency can lead to significant financial burdens, disrupt the trip, and cause stress. To illustrate the importance of travel insurance, let’s investigate a real-life case.

Importance of travel insurance

Rakesh, a 52-year-old tourist from India, embarked on a week-long vacation to Japan with his wife, excited to explore Tokyo. However, on the fourth day of his trip, Rakesh collapsed on the floor. His wife and people around him gave him CPR and called an ambulance (dial 119 or 110). Within minutes, an ambulance arrived. However, no hospital was ready to admit him as he was a foreigner who could not speak Japanese.

By the time he was taken to a private hospital, he was almost normal. To see him and do nothing, the doctor charged him USD 1500. Rakesh had to pay this amount out of his pocket as he was not covered by health insurance. Buying insurance in India would have barely cost Rakesh INR 1500.

Lesson No.1. Buy your travel insurance without fail. If you don't have travel insurance, hospitals can charge up to 300% of the normal rate.

However, the government has also given you a safety net. In Japan, many hospitals offer medical services at fixed cost (Muryo-Teigaku Iryo Seido) even to foreign travelers. However, many a time, the ambulance services do not introduce such hospitals to foreigners. The list of these hospitals is available on the internet.

Negotiating the invoice amount

In another case, an Indian tourist who experienced a heart attack was admitted to a hospital in Tokyo. The tourist held travel insurance; however, it was not accepted for a certain reason. The lady was admitted to the hospital for 2 nights and 3 days, and handed over a bill of USD 8,000. The lady contacted me for help. We called the medical social worker (MSW) at the hospital, who helped us reduce the bill to approximately USD 2,500.

Lesson No. 2. If the hospital hands over an unreasonably high bill, do not pay it. Do not worry, as the hospital will not take any legal action immediately.

As a first step, speak to the medical social worker (MSW) available at the hospital. MSW will confirm the details of the treatment given and negotiate the bill.

If the MSW is not effective, as the second step, speak to your insurance company. They will negotiate the bill with the hospital. As the third step, contact the medical safety support center (Iryou Anzen Shien Senta-) in your area. And as a fourth escalation, you can contact the consumer support center (Shouhi Seikatsu Senta-) in your locality.

One more important thing. Sometimes, hospitals are unable to calculate the exact cost of services offered on the spot, at the time of your release from the hospital. In such a case, they ask you to submit a higher amount as guarantee.

If you are unable to pay the guarantee amount or the bill right away, or unable to produce your travel insurance on the spot, you are allowed to present your insurance and settle the bill within 10 days of your release from the hospital. If the hospital is stubborn, ask them to call upon the MSW.

Negotiating the payment cycle

A lady living in Japan was admitted to the hospital and operated urgently. The bill was very high. The lady did not have as much savings. We first negotiated the bill amount to almost one-fourth of the invoice, and then negotiated a payment cycle of JPY 100,000 a month.

Lesson 3. If you do not have enough cash to pay the hospital bill in full, you can negotiate the payment cycle. Explain your situation and show willingness to pay the total amount.

Please find some useful information here.

https://www.jnto.go.jp/emergency/eng/mi_guide.html

I hope people take advantage of this information. Do not take any undue advantage of this information. You must get travel insurance when you travel overseas for a short term. You must join the health insurance scheme as suggested by the local authorities when you migrate overseas.

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