Definition

Travel Insurance refers to the type of insurance policy which provides you financial protection from any loss or damage caused due to unforeseen circumstances that may arise while you travel, whether in the country or abroad.

Why should you buy travel insurance?

Consider you have planned a trip, whether for work, for studies, or just as a vacation. No matter how well you may have chalked out all the little details of your trip, certain untoward circumstances may arise without warning, such as:

• Emergency medical conditions that may need hospitalisation such as meeting with an accident or catching an illness
• Getting stranded in a remote location
• Flight related issues such delays or luggage loss/damage
• Personal liabilities you may incur accidentally

Travel insurance protects you from these eventualities by providing you financial coverage against all such adverse situations. Additionally, having a travel insurance policy is mandatory for visiting certain countries. Purchasing this policy gives you the peace of mind necessary for you to enjoy yourself during your travels without worrying about you or your belongings.

Benefits:

Getting a travel insurance is always recommended because it gives you a huge array of benefits while you travel. Coverage benefits of travel insurance policies commonly include:

• Medical Expenses: All medical expenses including hospitalisation as well as daycare for treatment of diseases or due to accidents.
• Medical Evacuation In case of severe medical conditions that cannot be treated locally or accidents etc., the policy covers the cost of emergency transport to the closest medical facility that provides these services.
• Repatriation of Remains In case of the unfortunate demise of the insured while travelling, the insurance covers the costs of a funeral, as well as transportation of the mortal remains back to the country.
• Daily Cash: In case of hospitalisation of the insured for treatment, the policy arranges for a fixed cash amount to be disbursed to cover the regular day to day expenses.
• Accidental Death or Disability: If an accident while travelling leads to permanent disablement or death of the policyholder, compensation is paid to the insured or to the next of kin.
• Loss of Baggage: If your check-in baggage is lost or misplaced during transit, the insurance compensates your losses. Further, if the checked-in baggage arrives late, the policy reimburses any emergency expenses you may have had to incur on clothing, personal requirements, etc.
• Missing Connecting Flight: If your inbound flight is delayed for any reason, leading you to miss a connecting flight to your final destination, the travel insurance policy covers all your losses and expenses for further arrangements.
• Trip Cancellation & Curtailment: If unforeseen situations arise just before your journey and you have to cancel or postpone your trip, travel insurance covers the losses you incur from flight and accommodation reservations already made.
• Loss of Passport: If your passport is lost or stolen while travelling abroad, costs of issuing a duplicate or replacement is covered.
• Personal Liabilities: Unforeseen events may happen anytime, and some of them may not cause you any harm, but to the person or property of a third party. Travel insurance policies cover all these liabilities, including legal expenses.
• Compassionate Visits: If you are a student studying abroad and you have to be admitted to the hospital due to an accident, a travel insurance policy will not only cover the medical expenses, it will also cover the travelling and accomodation of an immediate family member. Conversely, the policy also covers the travelling costs if you have to travel back to India due to hospitalisation of a family member.

Apart from these, travel insurance also gives you coverage against a number of other unfortunate situations you may face.

Key features:

Travel insurance plans vary among different insurance providers. However, policies from all providers have a few features in common. These key features include:

• Emergency Medical Expenses: All travel insurance policies provide you coverage against medical expenses incurred due to daycare or hospitalization, whether for treatment of ailments or caused due to accidents. In case of hospitalization, cashless facility is often provided, where all medical bills are settled directly by the insurance provider without you having to pay anything.
• Compensation for Flight-Related Issues: Whether it be loss or misplacement of baggage, delay in baggage arrival, or missing connecting flights, travel insurance commonly covers all expenses due to the same.
• Loss of Documents: Travel insurance policies cover the expense of getting duplicates or replacements of your travel documents (passports, identity cards, etc.) issued in case you lose them during your travels.
• Trip Curtailment: If your trip needs to be canceled or postponed at the last minute for unforeseen reasons, travel insurance covers all the losses you will face out of cancellation of hotel reservations, flights, etc.
• For Frequent Flyers: If you are a frequent traveller or need to make multiple long trips in a year, travel insurance can be very expensive for you. Travel insurances thus accomodate you by long term plans which provide coverage for multiple trips instead of just one.