What is travel insurance?
An insurance product designed to cover the costs and losses, and reduce the risk associated with, unexpected events you might incur while traveling. It’s often pitched as the best protection for those traveling domestically or abroad. Many online companies selling airplane tickets or travel packages allow consumers to purchase travel insurance (also known as travellers insurance) as an added service. Some travel insurance policies cover damage to personal property; rented equipment, such as a rental cars; or even the cost of paying a ransom in the case of a kidnapping.
Why travel insurance is important?
If you are travelling overseas, or even domestically, taking out travel insurance is highly recommended by the Australian government and smartraveller.gov.au.
Getting help overseas
Thousands of travellers experience some kind of trouble when holidaying overseas each year.
Having the right level of travel insurance cover is critical when travelling. If you fall ill or have an accident while overseas, travel insurance can ensure that you get the best quality of care and you can be moved, either back home or to a better medical facility, if needed.
Travel insurance provides you with protection from medical costs
If you require medical attention while travelling, you may be liable for the cost of your treatment if you don’t have travel insurance.
Medicare will not pay or reimburse you for any medical expenses you incur overseas.
Travel insurance can cover disruptions to your trip
It’s no secret that when you travel, there is much that’s out of your control. Flights can be delayed or you might need to return home if an emergency occurs.
Without travel insurance, disruptions to your trip can end up costing you a fortune. In many cases, you lose the money you’ve already paid, and have to pay for new bookings too.
Many travel insurance packages will cover you for incidents that are out of your control, so that you don’t have to spend your own money if something goes wrong.
You can be reimbursed for your losses and expenses
If your luggage is stolen, lost or damaged overseas, you can end up significantly out of pocket – and if you don’t have travel insurance, you will be responsible for replacing your items.
If you take out the right insurance, however, you can be reimbursed for your losses and expenses, meaning that you won’t lose money due to an airline or hotel blunder, or a thief’s wrongdoings.
Types of travel insurance:
➡ Travel Accident Insurance
The purpose of this insurance is to provide term life and accidental death and dismemberment protection for you and your family. This covers unexpected and sudden losses that occur because of travel or flight accidents. Some other emergency assistance benefits might cover baggage loss, evacuations, medical and dental expenses, pre-existing medical conditions and repatriation. The benefits apply while you are on a trip that is insured or during the coverage period. This type of trip insurance is ideal for frequent world travellers, particularly those who visit risky regions.
➡ Travel Medical Insurance
General health insurance doesn’t protect you when you travel abroad, but travel medical insurance acts as a sort of extension to cover medical, dental and evacuation costs during your travels. This trip insurance is very affordable because it doesn’t cover a host of other incidentals such as trip cancellations. However, some plans include benefits for delayed or lost baggage or delayed trips. You can usually purchase travel medical plans for a single trip or multiple trips over a certain period.
➡ Medical Evacuation Insurance
This type of plan focuses on covering the cost of evacuations and repatriation. If you are hospitalized while traveling with your family, it may cover the cost of an emergency medical reunion and the return of any minor children home. Some plans may also provide term life and AD&D benefits to protect your family as well as coverage for lost luggage, adventure sports and trip interruptions.
➡ Package Travel Insurance
Compared to travel accident, evacuation and medical insurance plans, package travel insurance is much more comprehensive, which is why it’s the most commonly purchased? Package plans are customized according to the different needs of various travellers. A typical plan includes coverage for evacuations, luggage problems, medical and dental costs, returning minors home, and trip cancellations, delays and interruptions. Some plans also cover adventure activities, credit card and passport services, identity theft assistance, pet care, pre-existing medical conditions, rental car collisions, roadside assistance and sports equipment.
➡ Annual and Specialty Travel Insurance
Annual travel insurance is similar to package travel coverage, but instead of covering a single trip, it covers all of your trips for an entire year. Some of these plans are renewable. Specialty travel insurance provides coverage for certain aspects of a trip, such as car rentals and term life, to supplement the benefits that you already receive. This type of plan is ideal when you are concerned about a specific risk.
Factors affecting Travel Insurance:
What a travel insurance plan has to offer?
One of the most vital offerings of a travel plan is it covers the evacuation cost if needed. If the insured traveller falls ill during the trip the travel plan provide cashless hospitalization. Aside from health issues, travellers also come across a number of hazards while on vacation. Risks like loss of passport or checked-in baggage, interruption or cancellation are well protected by a travel policy. Furthermore, travel plans also pay for the legal assistance that travellers need in time of a monetary emergency.
All these safeguards are available if you opt for a travel policy. You can never predict what will happen to you during your vacation so it is wiser to prepare for the worst. And, the best form of protection is a travel insurance. You will not only be insured by spending some money but will also get best assistance in an unknown place, if required.
Finding a suitable travel plan in India
There is no dearth of travel policy in India. There are scores of insurers who are ready to offer you a myriad of plans. The tricky part is finding the best travel policy that looks perfect in all aspects. To locate the best policy you need to understand your needs and budget. The premium rate is one of the most crucial factors and here is a detailed discussion on those aspects that have an effect on premium of travel insurance plans in India.
Sum insured amount influence premium rates
At the time of availing a travel cover, you need to select a particular sum insured amount. The amount of sum insured chiefly depends upon the geographical area where you are supposed to fly to. Typically, if you want to visit countries with expensive medical services you should opt for a higher sum insured. A higher sum insured also triggers higher premium amount as well.
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