Understanding What Travel Insurance Covers
Are you on the verge of preparing for your next big trip? If yes, then you may have booked your air tickets, made hotel reservations, even planned your sightseeing itinerary. But have you thought of Travel Insurance? What is the purpose of owning a travel insurance?
Despite the easy accessibility of travel insurance policies online, only around 20% of travelers currently opt for an International Travel coverage plan. And most purchase insurance where it is mandatory for obtaining a visa, or else opt not to go ahead with insurance. Therefore, most of us probably will never end up purchasing a travel protection plan. Which is an unfortunate scenario because Travel Insurance is so critical for you have a stress free trip abroad.
In this blog, let us learn in detail about what travel insurance covers in general and what factors to look at before selecting one.
Understanding Travel or Trip Insurance
So, let us first address this question - what is travel insurance?
A travel insurance policy is a tailored financial protection tool specifically designed for travellers going abroad or traveling within India to cover for any unexpected emergencies which are medical or non medical in nature. It covers the expenses that may arise from potential mishaps during a trip. Such misfortune events can be medical emergencies, trip cancellations, or lost baggage during traveling.
Travel insurance is all about giving you the necessary financial strength so that you can focus on your trip without stressing about emergencies. Simply put, it is a backup plan in case something goes wrong.
What Does Travel Insurance Cover?
When you do not purchase a travel insurance cover, you may have to bear expenses for medical and non medical exigencies if anything goes wrong during your trip. Based on the specifics, a travel insurance policy will offer reimbursements for various expenses incurred, subject to the policy terms and conditions.
Most travel insurance companies include coverage for :
●Lost or Delayed Luggage in the custody of the Airline
●Emergency Medical Costs, like the treatment expenses abroad either Inpatient or Outpatient
●The non refundable expenses of Airline Bookings, Hotel Reservations etc incurred in case of Cancellation of trip due to covered reasons
●Travel disruptions, like Flight Cancellations or Delays or Missed Connections
●Legal expenses under Personal Liability coverage, such as those incurred if you are sued for unintentionally and accidentally damaging property or inflicting injury on another person
However, the exact coverage varies greatly for different insurance companies and their individual policy types. Thus, it is crucial to be accustomed to some of the terms of a travel insurance plan before buying a plan.
What Your Travel Insurance Coverage May Exclude?
Undoubtedly, there are many reasons to own a travel insurance plan, especially when travelling abroad. However, certain aspects may not be protected under a regular travel protection policy. This part largely depends on the insurance company you go for. Some of the regular exclusions under the Travel Insurance are as follows:
1.travel against medical advice or
2.any Pre-Existing Condition or
3.with the intention of receiving medical treatment or
4.after a terminal prognosis has been made or
5.if the Insured is aware of any circumstances that could reasonably be expected to give rise to a claim
6.Winter Sports or the use of dry ski slopes
7.Manual work of any kind
8.Direct participation in riot or civil commotion.
9.War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, insurrection or military or usurped power
For instance, if a person is above the age of 70 or has pre-existing illnesses, then such information has to be disclosed to the insurer beforehand.
In addition, potentially dangerous activities like winter sports, bungee jumping, or other forms of adventure sports are not typically covered in a standard insurance travel plan. So, if you want to include them, the insurance company will charge an extra premium.
Apart from the above scenarios, travel insurers typically exclude expensive or luxury items like jewellery, laptops, cameras, or watches, as these things often exceed the 'single item price limit' for a standard travel protection plan.
What are the Different Types of Travel Insurance?
Although travel insurance plans vary a lot in terms of coverage, generally, the plans fall under one of the below-mentioned categories:
●Single-Trip Plan: This travel insurance policy covers the beneficiaries for a one-off tour for a predetermined period.
●Annual Travel Protection Plan: These are cost-effective solutions that cover the beneficiaries for as many trips they take throughout the year. If someone is about to take more than one vacation or business trip within a year, this policy can save them a significant amount of money.
●Family Travel Protection Plan: A family travel policy typically covers two adults and multiple children, but the exact number and eligibility criteria depend on the insurer. Some premium discounts are available for family travel policy.
●Worldwide and Rest of the World Plan: Usually, two types of worldwide travel insurance coverage policies exist - those covering America and Canada, and those covering the rest of the world (RTW). The geographies are bifurcated based on the cost of medical treatment for any hospitalization. USA & Canada have the highest cost of medical treatment across the world and hence premiums for travelers to these destinations are higher.
●Schengen (European) and African Travel Insurance Plan: These are travel insurance plans which are specifically available for the European and African continents. The Schengen area covers 27 countries across Europe and travel insurance is mandatory for the purpose of obtaining a visa to any of these countries. Also they have a minimum Sum Insured requirement for Accident & Sickness of 30,000 Euros and this is made available by the insurance company. Some insurers offer coverage for all benefits in Euros, given that this policy is only applicable there. Similarly given that there in a surge in travel by Indian tourists to African destinations, some insurers have rolled out an African specific plan.
Benefits of Travel Insurance Plans
The various useful travel insurance benefits are listed down below:
●It Allows to Save Money on Cancellations of Trips
Nobody can be 100% sure about how their upcoming trip will go. Many scenarios can come up at the last minute that can cause a trip cancellation especially of there is a family medical emergency. In those cases, a travel insurance plan helps to cover the non-refundable prepaid expenses for bookings of air tickets, hotel, transfers etc as per your policy terms.
●You Can Get an immediate Medical Evacuation From Any Part of the World.
Suppose you face a medical emergency while away from India, and the attending doctor physician recommends treatment either abroad or to return to India, a comprehensive travel coverage plan will cover all the costs involving emergency evacuation services will be borne by the insurance company.
●You Can Travel Even After Losing Your Luggage
Particularly in international trips, the loss of luggage is fast becoming a common occurrence in large airports with mutiple airlines. A reliable travel insurance cover can protect you from this mishap by paying for up to 50% of the amount assured through your trip policy for each of your delayed bags, and covers upto two bags per passenger.
●There is cover for Personal Accidents as well
Accidents occur unannounced and if a person's trip involves risky events like adventurous sports, it is highly advised to avail an accidental cover under travel insurance. This will protect them against costly medical bills and ensure they receive the best medical facilities whether it be in India or abroad. Some insurance plans also cover Accidents that occur in common modes of transport like Airlines, Metro stations etc.
●It Helps Get Money Back on Flight Delays or Missed Flights
Winters are often a time when multiple flights can be delayed due to unfavourable weather conditions. A traveller can lose a significant amount of money if their connecting flight is missed due to a delay in the arrival of the first flight. Thus, to be on the safer side, it is advised to get a travel coverage plan that pays for flight delays or cancellations.
These are only some of the benefits that are covered under Travel Insurance, kindly go through the insurance company travel insurance brochures, or their websites to understand all benefits covered under the policy, which you decide to purchase.
Final Words
When purchasing travel insurance online, it is important to know about how to get the right travel insurance among all the insurance plans available across companies. There are many comparative website which also compare travel insurance plans across multiple companies which make it easier for the traveller to make an informed decision regarding the optimum plan. However, you have the option to avail the best travel insurance from Star Health by comparing all of our travel plans. Star Health’s Travel Insurance plans also over specific advantages like coverage for pre existing conditions and no medical sublimits, kindly refer their Terms & Conditions before purchasing the same.
While making your final choice, please ensure that your requirements are met by ensuring that the plan opted for has all the coverages you believe are required under the comprehensive travel insurance plan. If in doubt, you can get in touch with the experts by calling 044 6900 6900 and clarify your doubts.
