TRAVEL INSURANCE – WHY IS IT SO IMPORTANT !!

An overview of the features of overseas travel insurance – why everyone MUST buy it

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Consider the below scenarios which can occur quite frequently during travel.

SCENARIO 1 

Mr and Mrs  Sharma  were travelling through USA on a much needed holiday. Both of them in their late fifties, with kids settled in respective jobs , were enjoying a much needed vacation. Suddenly one morning while having breakfast, Mr Sharma started complaining of chest pain. He was rushed to the nearest hospital where he underwent a lot of tests and finally an angioplasty was done on him. All this required a huge amount of money that too in US dollars,  but because both Mr and Mrs Sharma had adequate and proper travel insurance cover, their hospitalization happened in a cashless manner!! Otherwise just imagine the kind of hassles they would have had to face in raising the huge amount of money required for such a operation in the United States. 

SCENARIO 2 The Ziplining activity that Mehak was doing suddenly developed some fault and she got injured in the accident. But because her Travel insurance covered adventure activities her treatment including transportation to the hospital from the remote adventure location, was totally cashless!!

SCENARIO 3 Manoj was a student studying design in a 2 years course in a college in Milan, Italy. He was lucky that his father could sponsor the whole cost  for his studies so it became very easy to get the visa and come to Italy. Unfortunately his father passed away within 6 months of the course starting! Now who would have supported Manoj’s studies – his student travel insurance came in handy!!  Because he had opted for a specific add on to the normal travel insurance plan, even though his sponsor (in this case his father) was no longer available , the insurance company would take care of his expenses of the course!!

All the above examples illustrate how  important the Travel Insurance component should be in your travel plans !!

What is Travel Insurance ? Why is it so important ? Why do we recommend everyone planning to go abroad to include Travel Insurance ?

First of all lets debunk one MYTH  that travel insurance is ONLY to cover medical expenses if you get ill or injured on tour. 

That’s just one part of the whole bouquet of coverages in the insurance. Travel insurance also covers some aspects of your air travel, hotel bookings, sightseeing, luggage, adventure activities etc and also includes any help that you may need in case of loss of passport, trip cancellation, postponement and a host of other benefits. 

SURPRISED ??

Read on as we delve into the nitty gritties of travel insurance to unravel  the hidden features as also clarify on a lot of dos and donts while buying a travel insurance policy. 

WHAT IS COVERED IN A TRAVEL INSURANCE POLICY ?

Emergency Medical Expenses / Hospitalisation/Accident/Death Coverages

• In case you fall ill while on tour,  the emergency treatment expenses are covered. Expenses covered include ambulance charges OPD charges, hospital room charges etc  etc.  Treatment is cashless , you have to call a call centre number and tell them the policy number and city you are calling from. They will tell you the network hospital where you can go to avail cashless facilities. 
• Please note any illness resulting from any pre existing medical condition is not covered. 
• In case you get injured while indulging in adventure activities like rafting, ziplining, bungee jumping, desert safari etc ,  expenses incurred towards treatment is covered. 
• In case of death, the cost incurred in bringing the body or mortal remains back to India is covered; additionally the cost for a relative to travel to the foreign country to bring back the mortal remains is also covered.
• Basic dental expenses like pain due to a recent infection or tooth extraction to relieve pain are covered. Please note expenses towards repair of dentures, fixing of crowns and bridges, cementing or filling are not covered !!
• Similar to the mediclaim in India, in case of hospitalization, the insured is paid a lumpsum amount by way of daily allowance. 
• You are on tour and a immediate family member is hospitalized or there is a death in the immediate family then the cost of your travel to India  is also covered. 
• Like the Personal Accident policies we have in India, travel insurance policies also pay the  benefit amount shown in the policy in case an insured dies due to any visible violent external means like a car accident or any other accident.

Travel related coverages

• In case of death or hospitalization of immediate family member,  if the tourists wants to cancel the tour, then the cancellation fees charged by the airline as well as by the travel company
• You miss a flight due to any adverse weather conditions or any technical issues with the aircraft (both quite common nowadays) , then the cost incurred towards food and accommodation is covered.
• If flight delay is caused by inclement weather, riots, strike, industrial actions, or any delay solely by the airlines, then the cost of booking alternate flights and accommodation is also covered (after deducting the refunds from airlines)
• In case you have connecting flights and you miss the connection because of delay in one flight then insurance company will pay for the cost of new tickets or the difference of cost between the old and new tickets in case the connecting flight is missed due to the incoming prior flight.
• In case of overbooking by the airline, and they are unable to a lot a seat to you, then the cost of booking alternate flights is also covered.
• Loss of baggage is covered if it is misplaced while in custody of the airline. Please note theft of baggage while on tour is not covered!!
• Delay of baggage is only covered when you are going out of India. On the return trip to India , if the baggage is delayed then there is no compensation
• You reach a hotel with a confirmed reservation and the hotel is unable to provide you  the rooms booked by you  inspite of confirming it earlier, then you can be compensated the cost to upgrade to a higher room category. 
• Situations like Hijack, cost incurred in evacuation in case of political turmoil, cost of new bookings in case the overseas agent who has booked your tour becomes insolvent , loss of international driver licence, debit or credit card fraud, – all this is covered.
• Loss of Gadgets like mobile, laptop or loss of passport due to theft or robbery is also covered!!
• You have a 8- 9 days cruise booked; but you fall sick and cannot join the cruise on the starting day since you are in hospital. The cost of rejoining the cruise is also covered !!

After reading all this you must be thinking that travel insurance is only for Overseas Travel – that is not true. Travel insurance is also there for Domestic (within India) travel.

Insurance coverage here includes many of the clauses that are there for International Travel Insurance like expenses on hospitalization, trip cancellation, trip delay, flight delays, missed connections, loss of check in baggage, delay of checked in baggage etc.

IMPORTANT THINGS TO REMEMBER WHILE BUYING A TRAVEL INSURANCE POLICY

• Do not buy policies sold online at just the click of a button. Always fill up the proposal form with the correct details as also information about pre existing diseases. Most portals nowadays and even travel agents  issue policies without properly verifying all your details as mentioned earlier. In case of any discrepancy, your claim may get rejected!!
• Depending on what all you are going to do on your trip, check if the policy covers all intangibles that could arise in the trip
• Mention the nominee name and the relationship correctly
• Understand the inclusions and exclusions
• Ensure the travel policy is valid till the date you return back to India
• Always carry a hard copy of the policy along with a soft copy also.

HOW TO FILE CLAIMS

In case of a claim, every insurer has a special help center phone number and email id. Immediately call, tell them your name and policy number and the city you are calling from. In case of hospitalization, they will tell you the nearest Network hospital which will offer Cashless treatment. In case of other types of claims, they will help you on the procedure to be followed. 

HOW TO DECIDE WHICH POLICY IS SUITABLE FOR ME ?

• Travel insurance policies have premiums based on age, number of days (calculated from date of departure from India to date of arrival in India), and the part of the world you are visiting.  Premiums increase with age and also with increasing number of days. 
• Premium rates are lowest for travei in Asian Countries, slightly higher for travel in Europe and highest for travel in USA and Canada. Coverage  amounts range from a minimum of USD 25,000 for Asian countries to a high coverage of USD 5,00,000 for USA/Canada and Europe.
• For people above the age of 60, some insurance companies ask for medical tests to be done – so check once with your insurer. Many insurance companies don’t provide travel insurance to people aged 70 and above, and those that do have very limited cover and that too at a very high premium.
• Please note that all the above coverages mentioned above in domestic and international insurance  may not be included in a single policy. Sometimes you may need to to add a rider at additional premium to cover some part of your travel which the basic policy does not cover. 

 SO ALWAYS TALK TO YOUR INSURANCE ADVISOR / TRAVEL AGENT  TO CHOOSE THE RIGHT POLICY COVERAGE FOR YOUR TRIP.

We can help you in arranging for the right travel insurance for you. Connect with us at smarttraveller1@gmail.com