JOIN USYou are on your preferred travel portal, booking your flight to that long-awaited holiday in Greece. A pop-up on your screen prompts you to apply for travel insurance and you close it almost immediately. Perhaps, you should have given this some thought because if you thought your domestic mediclaim policy covers you outside India — you are wrong.
However difficult it may be to digest the possibility of health issues ruining your vacation, it is a precautionary measure that will save you from unnecessary hassle during your short or long break. Applying for a travel insurance policy has become more of a necessity than a need.
Protecting yourself
Purchasing a travel insurance policy that meets your requirement is the first step towards protecting yourself while you’re traveling abroad. Most general insurance companies are trying to educate travellers about the importance of travel insurance.
In fact, some countries have made it mandatory for travellers to be adequately covered under travel insurance. For example, Schengen countries insist on travel insurance as part of a traveller’s visa documentation.
Even Australia has made it mandatory for people above a certain age to apply for this cover. Additionally, students travelling abroad for further studies are usually advised to apply for a travel insurance cover.
In India, the concept of travel insurance has still not been explored due to unawareness among majority of the population.
However, of late, travel insurance is gaining ground, with more cash being available at one’s disposal combined with relatively cheap fares. Also, with the increase in the number of online ticketing platforms and cheaper airfares; online insurance offered by general insurance companies, have added to the growth in the sale of travel policies.
In order to compare the varied plans, factors such as the cover options, premium amount, medical cover, upper age limit should be given prior consideration.
The premium for an insurance plan depends on the location, the travel period, age of the traveller and the level of coverage chosen. One has to shell out more for protecting themselves to travel to North and South America vis-à-vis other countries.
Many insurance companies also provide exclusive covers which offer specialised protection to customers. Baggage loss and baggage delay are the most common problems encountered while flying, which travel insurance covers.
However, one should note that coverage is offered only when it is in the custody of the common carrier, which in most cases is the airline. One must keep in mind that it will cover only checked-in baggage and delay in receiving baggage outside Indian boundaries. This means that if there is a delay in receiving baggage in India; the policy wouldn’t respond.
Travel insurance policies also have features which cover inconvenience caused due to trip delay, trip cancellation, missed connections and loss of passport. The possibility of personal liability is also covered which may lead to litigation in the foreign country. Insurance companies also provide cover if his unattended house in India is burgled, while the policyholder is abroad. This is covered under the home burglary benefit.
Did you know that if you are in the age bracket of six months to 70 years, you are eligible to purchase travel insurance. People who are of 71 years and above can still purchase travel insurance but would have limited cover.
The duration of travel insurance policies are up to a maximum of 180 days per trip. Premium is determined by the amount of Medical Expenses Sum Insured and it varies from $50,000 to $500,000.
Pre-existing ailments
Pre-existing ailments are normally excluded in travel insurance and the premium is calculated basis country of travel, age group and trip band. Further, both outpatient and inpatient treatments are covered under travel insurance whilst the insured is abroad. Insured may apply for reimbursement of expenses when they return to India in case of outpatient claims.
Students can avail of a specialised cover which is in compliance with institutes abroad and it can be opted for a period of one year. A student cover also includes mental and nervous disorders, rehabilitation for drug and alcoholic addiction, sponsor protection, study interruption and compassionate visit. But students would do well to check whether the travel policy they intend to buy is recognised by their institute.
In conclusion, always remember to purchase a travel policy from a respected insurance brand, which has an international presence and a strong track record. One should also take into account the claim settlement record of the insurer. It is advisable that all travellers opt for a travel policy to avoid any unforeseen contingencies which may take place and turn their trip into a nightmare abroad.
(The writer is President – Insurance at TATA AIG General Insurance)