There have been several cases of Indian students contracting illnesses in a foreign country. Sometimes such illnesses are serious and/or need a long period of hospitalization. In addition to treatment at the hospital, it is sometimes required that you need a personal friend / relative / family member to be by your side. It just makes you feel better and recover faster.
With Compassionate Visit benefit, in the event your being hospitalized for more than 7 consecutive days (could be different depending on your plan), and your medical condition does not allow repatriation to India, and if no adult member of your immediate family is present, then the insurer after obtaining confirmation of need for a companion from the attending doctor, will provide a) a round trip economy class air ticket, or first class railway ticket, to allow one immediate family member (your Mom or Dad, say), during the entire period of insurance, to be at your bedside for the duration of stay in the hospital, and (b) expenses towards the person's stay during this compassionate visit.
Now, doesn't that sound really comforting?