A travel insurance policy to cover theft, loss and medical problems is always highly recommended. Most policies will cover costs if you are forced to cancel your tour because of flight cancellation, illness, injury or the death of a close relative. This can protect you from major losses due to Bhutan's prepayment conditions and hefty cancellation charges.
Some policies specifically exclude 'dangerous activities', and these can include motorcycling, rafting and even trekking. Read your policy carefully to be sure it covers ambulance rides or an emergency helicopter airlift out of a remote region, or an emergency flight home. Many travel-insurance policies include repatriation and evacuation through the worldwide network of International SOS Assistance. Keep in mind that if you can't afford travel insurance, you certainly won't be able to afford to deal with a medical emergency overseas.
You may prefer a policy that pays doctors or hospitals directly rather than you having to pay on the spot and claim later. If you have to claim later, make sure you keep all documentation. Some insurance companies ask you to call them (they suggest reversing the charges, an impossibility from Bhutan) at a centre in your home country, where an immediate assessment of your problem is made.
Worldwide travel insurance is available at www.lonelyplanet.com/bookings. You can buy, extend and claim online anytime – even if you’re already on the road.