Canva ImgCanva Imgage

Travel Insurance, types, which one to opt

  • Travel Insurance offers coverage against various types of emergencies like medical expenses.
  • It is a type of insurance that covers different risks while travelling.
  • It covers medical expenses, lost luggage, flight cancellations, and other losses that a traveller can incur while travelling.
  • We must buy a travel insurance policy in advance to cover the dates you’ve travelled on.
  • It provides you with the freedom to enjoy your trip without any interruptions.

Why should you buy Travel Insurance?

  • 25 million baggage are reportedly mislaid by airlines every year.
  • 47% of baggage loss happen during international transfers.
  • Medical expenses cost 3 to 5 times more outside India.
  • Phones, Bank Cards, Licenses & Passports are the top 4 belongings people lose while travelling.
  • Travel scams are extremely common in tourist-heavy countries.

What are the features of Travel Insurance?

Let's have a look at some features:

  • Premiums are really affordable.
  • If you’re flying with your family, then opt for the family floater.
    This includes you, your spouse and 2 dependent children below the age of 23 years. You can also buy this policy individually.
  • The policy also covers losses/damages caused due to theft, housebreaking or fire to your home back in your country while you are on your trip abroad.
  • Different plans provide coverage across different age groups.
    For non-Schengen, its 3 months to 85 years, for Schengen, its 3 months to 60 years, for multi-trip it’s 3 months to 70 years.
  • In case of accidental loss of cash due to theft, robbery, mugging, or any other reason, the policy covers arrangements for providing you with emergency cash.
  • Apart from medical, travel, and baggage benefits, the policy also offers additional benefits.
    Some of them are loss of passport, emergency cash advances, and third-party liability.

How does insurance reduce your financial risk?

Imagine you’re driving your car and you hit a deer, which damages your car. If you have the right kind of auto insurance policy, the insurance company will pay the costs of the car repairs (minus the deductible — the portion you have to pay). Now, imagine a water pipe bursts in your bathroom, ruining everything in that room and in the bedroom next to it. Typically, if you have homeowner’s or renter’s insurance, the insurance company will pay to replace some or all of the damaged property, once you pay your deductible. Insurance policies will only pay for things that are described in the policy. So, it’s important to read a policy carefully before you buy it, so you’ll know exactly what’s covered.

What are the Types of Travel Insurance policy?

There are literally many types, however top 7 which almost covers everything are as follows:

  • Domestic Travel Insurance This policy is designed for customers intending to travel within the contours of the country. A domestic travel insurance policy insulates the policyholder from expenses that may result from treatment of a medical emergency, theft/loss of baggage and other valuables, delays/cancellation of flights, permanent disability, and personal liability
  • International Travel Insurance This policy is designed in keeping with what customers – travelling internationally – would want. Besides the usual coverage offered by its domestic counterpart, an international travel insurance policy safeguards you (policyholder) against risks of a flight hijack, repatriation to India, etc.
  • Medical Travel Insurance The name is the marker here – with the policy specifically designed to cover expenses emanating from medical emergencies and other healthcare-related concerns. However, the exact set of inclusions and exclusions will vary across insurance providers.
  • Group Travel Insurance Consider a group of employees travelling abroad to participate in a business conclave.
    In such a situation, it would not make sense for every individual in the group to purchase his/her own travel insurance policy – for the simple reason that it could compound premiums considerably.
    A group travel insurance policy is of much help here – considering it can help you save plenty on premiums, without having to compromise on the safety net against any unanticipated and adverse development that might take shape through the course of the trip.
  • Senior Citizen Travel Insurance Besides the usual advantages of purchasing travel insurance, a policy that is directed at senior citizens (generally belonging to the age group of 61-70 years) offers additional coverage against dental treatments/procedures as well as cashless hospitalization.
  • Single and Multi-Trip Travel Insurance As the name suggests, a single-trip travel insurance policy retains its validity through the time you are on a trip. It covers both medical as well as non-medical expenses (such as baggage loss, delays in flights, etc.).
    Multi-trip travel insurance policy, on the other hand, provides extended coverage (lasting usually a year in most cases) so that frequent flyers don’t have to go through the entire process of availing insurance every time they prep for travel.

What are the Top 3 Travel insurance Companies?

Top 3 best complete Health insurance Companies:

  • HDFC Ergo

  • What are the Factors to Consider When Choosing a Travel Insurance Company?

    Buying travel insurance for international travel is critical.
    However, some people ask, "Is travel insurance worth it?"
    There are many different types of travel insurance plans available in the market,
    and it is critical to understand them to make sure that you purchase the right kind.

    • What kind of trip are you taking?
    • Are you traveling single? With family? With a group?
    • Are you traveling for business, for leisure, for missionary work, to study or for something else?
    • How old are you? Are you young? Elderly?
    • What will be your trip length?
    • A few days or several months?
    • What exactly would you like to get covered?

    What is Covered under Travel Insurance?

    travel insurance usually covers all these:

    • Loss of Baggage: Under the baggage loss, you are compensated for the permanent loss of the baggage you were travelling with based on the check-in baggage stored. When stranded without baggage, you may feel left out and even frustrated, but the baggage cover allows you to incur the necessary expenses and they will be covered under the policy.
    • Baggage Delay: In travel insurance coverage, the baggage delay is compensated for the items in the baggage like worn clothes, toiletries, other essentials. When required, delay in the baggage can be stressful and sometimes leads to loss of baggage at the end.
    • Flight Delay: In situations of flight delay and re-booking a new flight, the unplanned additional expenses are compensated or booked by the insurance company if possible. In some situations the travel insurance company may offer to book a new flight for you, if delayed, but you should inform the insurer promptly.
    • Trip Cancellation: Various reasons can lead to a trip cancellation or curtailment. With the travel insurance policy, you can rest assured that your ticket expenses will be covered and you can get the amount reimbursed. Such a cover becomes even more important when the tickets you have booked are non-refundable.
    • Bounced flight/Hotel Booking: In situations like this, the hotels or flight seats already booked by the traveller are not available on arrival. In such cases, the insured person is reimbursed for the pre-booked hotel room or the airline bookings if the preferred accommodations are not available at arrival. The travel insurance coverage can be claimed for it if opted under the travel insurance policy.
    • Loss of Passport: In situations of a bag being stolen and losing your passport, you are covered under the Travel Insurance Policy. Up to the sum insured limit, the charges of getting a new passport are met by the insurance company.
    • Hijacking: In rare cases, if your plane gets hijacked during a trip, having this cover of a policy can compensate you for the emotional distress. These types of policy covers are not generally opted by the policyholder but when travelling to destinations unknown, can help with having this cover immensely.
    • Credit Card theft: Credit card theft is the cover which should be a must when travelling abroad. If and when your credit card is stolen or lost, immediately inform your insurer. Informing the insurance provider makes you eligible to receive emergency cash advance. The details of the same will be provided to you by the consulting agent or the information will be shared with the beneficiary appropriately.
    • Home Burglary: Under this point of the travel insurance coverage, if you are out on a vacation or a business trip and your house gets broken into, your Insurer will pay for the damages and loss incurred by you in that robbery. However, the amount you receive depends on your insurance policy and the extent of cover
    • Personal Liability: The clause of Personal Liability covers you from the claim made against you for bodily injury, damage to property or damage to another person during a trip. When away from the security of your house, it gets difficult to settle a situation on an unknown land. The cover of personal liability secures you from such unwanted and unprovoked situations.
    • Personal Injuries: Personal injuries incurred during the trip are compensated or expenses are undertaken by the travel insurance company. Injuries met under the influence of drugs or alcohol are not covered.
    • Interruption of Studies: Under the Student Travel Insurance Plan, many insurance providers cover expenses and costs you end up paying for your studies abroad. The insurance companies reimburse the tuition fees to the insured, paid in advance to the institutions by the insured.
    • Medical Evacuation: Regular Travel Insurance covers emergency medical evacuation. It includes the airlift, or the cost incurred to supply medically equipped flight apparatus back to the home country.
    • Accidental Death: The accidental death cover is the most important aspect of the travel insurance plans. Any individual or family member of the policyholder travelling overseas should add this accidental death clause in the policy of their travel insurance. In this cover, in case of the accidental death, while travelling,the family of the deceased is compensated up to the sum limit insured.

    What is NOT-Covered under Travel Insurance?

    Under all the types of travel insurance, the insured won’t get coverage under the following conditions/incidents/scenarios:

    • Substance Abuse: Alcohol or drugs.
    • Human-made situations: War, Civil war, Terrorism.
    • Medical Exclusions: HIV/AIDS, Alternative treatment, cosmetic treatment, pre-existing conditions or diseases, not following doctor’s medical advice, suicide or self-inflicted injury.
    • Baggage or Passport: Loss of passport is not covered under the travel insurance in India when the same is left unattended. Also, if the baggage is shipped separately from the insured, there is no coverage.
    • The travel insurance policy won’t cover Injuries due to participation in adventure sports.

    Travel Insurance Premium and Premuim Calculator.

    Due to its dynamic nature, every travel insurance policy has a different set of conditions.
    Consequently, the travel insurance premium for each of these plans is also different.
    Given below are the factors that affect your travel insurance premium.

    • Age
    • Travel destination
    • Duration of Travel
    • Number of Travellers
    • Add-ons

    Though the premium varies with Company, Age, location and many more, you still can get a basic idea by calculating here.

    What are the benefits of Travel Insurance Policy?

    • Travel insurance plans are one of those few travel insurance policies that have been able to provide complete coverage and protection from any kind of appalling event that might happen.
    • The policy will cover you for the expenses incurred in such situations where there could be unfortunate situations that might happen when you are traveling abroad.
      Emergencies can happen unannounced and so can accidents.
      When you are traveling to a new location, you might not be aware of what to do in such cases.
    • This might have happened to many people across the world and it is certainly not uncommon for us to hear about people losing their bags during the transit or at the airport.
      With the help of its amazing travel insurance plans, travel insurance policy is always ready to help customers who have lost their baggage.
    • A very terrible event that might occur is the loss of your passport.
      Because it is such an important document, you must be willing to keep it safe with you.
      Due to the fact that the loss of your passport might hamper your travel plans in entirety, it is a very important aspect of the travel insurance plans.
      There are certain costs and procedures involved in getting your passport back or having a new one made in a different country.
    • Travel insurance policy also provides great health coverage.
    • If there is a situation where your plane is under terrorist attack or is hijacked, in that case, travel insurance policy will provide you with a claim for the distress caused.
    • It is not that big a surprise that financial emergencies can happen at any time.
      It is very important to be well prepared, unless you are willing to face severe consequences.
      Many times, travelers can lose their wallets with their credit and debit cards and cash in them.
      This can cause a lot of trouble and if you do not have a financial backup, things can get ugly.
      This is why the travel insurance policy offers coverage for any kind of financial contingencies that you may come across while you are on your trip.

    What are the documents required Travel Insurance Policy?

    Just some basic details to help us get an idea of what you’re looking at, so we can be on the same page and provide you with the required cover.

    • Type of travel - solo or group.
    • Purpose of the trip - work, leisure or education.
    • Age
    • Gender
    • Travel destination
    • Number of days
    • Choice of sum insured

    What are the steps for Renewal of Travel Insurance Policy?

    Renewal step vary from broker to broker, however they don’t differ much. Follow these steps

    • Visit the official website of the broker.
    • Go to the ‘Renew Your Policy’ option on the menu bar and click on 'Travel Renewal'
    • Log in to the website by entering your registered mobile number or policy number
    • Fill up other required details regarding your policy
    • Add/remove any coverage, family member or change the sum insured if desired
    • Make the payment for the renewal premium online via debit card/ credit card/ net banking
    • Once your payment is successful, you will be issued a digitally signed copy of the policy. The policy document can be downloaded and printed anytime.