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Insurance Cover: Buy travel insurance and enjoy your trip

The vacation season is drawing closer and you’ve made a perfect plan for that much needed break. All nitty gritties have been taken care of and you are sure nothing is amiss. Just one fear remains: What if things don’t go according to plans? One goes on a holiday to unwind, but this fear can play spoilsport.


So what’s the solution? You can either keep your fingers crossed and pray that you have a smooth trip or opt for travel insurance. An increasing number of travelers today are realizing the significance of travel insurance. It is your ticket to a tension-free holiday.


Why travel insurance?


Consider this: You are faced with a medical emergency in a foreign land with no one for help and limited cash — an ideal recipe for a disastrous holiday. Add to this, the fact that the cost of medical treatment in the US and European countries is very steep and you know why travel insurance needs to be a critical part of your travel plans.


If you have such a policy, you effectively transfer the headache of zeroing in on a hospital and paying the bills to a third party — the insurance company. General insurers offer cashless service for hospitalization, which means that you can avail of services abroad though you would have incurred the costs (i.e. premium) in rupees.


If you happen to visit a doctor during your stay abroad for consultation, the amount will be reimbursed to you on the submission of the bill. Apart from medical risks, insurance companies also cover certain other emergencies such as accidents, loss of passport, delay or loss of baggage, missed flights, trip delay or cancellation, missed flights, financial emergencies, home insurance and even hijacking.


Cost of insurance


Four factors influence premium calculations:
- Age,
- destination,
- duration of travel and
- Insurance plan opted for.


Depending on these four factors, the travel insurance premium could vary from Rs 350 to Rs 36,000. Typically, the duration of the policy is in the range of seven to 180 days. Usually, the policyholder is allowed an extension too.


If you happen to travel frequently, you can also buy an annual insurance policy, which will be valid for several trips made during the year. A point to be noted here is that many insurers also provide such policies in collaboration with tour operators. It comes as part of your travel package. If customized, the costs might be higher.


A thorough study of plans offered by various insurers and a comparison of features is the best way of identifying the policy suitable for you. The reputation of these companies in disposing of claims is of utmost importance because at the end of the day what matters to you is the reimbursement of expenses incurred during the trip. “Quality of customer service and product innovation are the key differentiators.”


The key in travel insurance is service, because here, the insurer will have to come to rescue of the insured at the place and the time of the incident’s occurrence. Also, the reach is important. We have a presence in 130 countries, which means more convenience for the customers.


The age factor also needs to be looked into closely. Certain insurance companies insist on medical reports in case of those over 70. You should also watch out for the exclusions and deductibles in the policy. Usually, pre-existing illnesses, addiction to alcohol and drugs, mental disorder, war and warlike situations are not covered by insurers. Also, most insurance policies have a clause wherein the first $100 incurred during the course of an emergency has to be borne by the insured.


Claim settlement


Documents to be submitted for making a claim could vary according to the reasons. If you are seeking a reimbursement for fees paid to a doctor for consultation, the bills will have to produced. Similarly, if the claim is for loss of baggage, a letter from the airlines confirming the same has to be submitted.


Ideally, an insurance company should take between 7-10 days to process. Traveling light, as we all know, is advisable as it reduces the clutter, thereby making the trip more enjoyable. Travel insurance is also a part of this approach, because buying such a policy would mean carrying the worry baggage less.


Insurance cover: Window to the world


It’s summer and time to holiday for many. And international destinations are fast catching up as options, thanks to affordable flight fares and higher disposable incomes. Industry sources put the number of people who traveled to foreign destinations at six million from India. This number is likely to touch the 10-million mark by the year end. If you are one of those, read further.


One of the must-haves before you embark on an international travel is travel insurance. What does travel insurance cover? Like most other mediclaim/health insurance covers, travel insurance covers your expenses on medical treatments. It is similar to cashless service available in case of a mediclaim policy. So you pay for your premium in India in rupee denominations to meet the cost of the medical treatment at the foreign destination.


It’s mandatory to take an overseas insurance in before visa application in all of the 15 Schengen countries, which include France Germany and Finland. This cover could really come in handy as the cost of medical treatments in the US as well as Europe is steep.


When you travel to the US or any European country, you are moving to a higher price index zone. So the local mediclaim policy will not cover you once you cross the Indian peripheries.


And the medical costs are higher outside India. For instance, an appendix operation in India will cost around Rs 50,000 while a similar operation may cost you around $200,000 in the US. America is the most expensive place for medical treatment.


A) Beyond health cover


Now let’s imagine a situation where you land at Chicago and you lose your passport while travelling. That’s the perfect beginning for a disastrous holiday. For all you know, you may not be able to return back home. And typically, by choosing a relevant plan, you could have passport and baggage loss covered as well.


Apart from medical and sickness, travel insurance also covers you against a range of mishaps such as personal accident, loss of checked baggage, loss of passport, personal liability, trip delays or missed flights, financial emergencies, including house burglary while you are away on a holiday.


Once you lose a passport, you to have to visit the concerned consulate at least three to four times. Additionally, you may have to click photographs over and above the application fee. These unexpected inconveniences have costs attached, which these insurance policies cover. Similarly, you could break a flower vase in a hotel, which could cost you $500. The personal liability clause in the travel insurance cover looks after that aspect..


B) Things to look out for:


1) Do you need a high sum?

You may be cautious and sign up for a cover of $1,00,000 or above. But there are sub limits and caps on medical charges as well as checked baggage or lost passport. So read the fine print. Some policies cap the claim amount to be paid for baggage loss at $500 or even lesser, irrespective of the sum insured.

Also, most insurance policies have a clause wherein the first $100 incurred during the course of an emergency has to be borne by the insured.


2) Age Factor

Look at the age limit. Certain insurance companies insist on medical reports in case of those over 70.


3) Exclusions

Some policies do not cover adventurous sports, flying schools and trainees going on sea. There are separate policies for adventurous activities like bungee jumping, parasailing or deep-sea walking. Insurers do not cover even pre-existing illnesses, such as mental disorder or war-like situations. Other common exclusion includes individuals who go overseas for a medical treatment.


4) Claim settlement

Paperwork for claim settlement varies as per the case. For medical reasons, original bills have to be produced. In case of claims for loss of baggage, you have to submit a letter from the airlines confirming it. Insurers claim that they process the claims by 10 days. It’s worth taking travel insurance. After all, it could be your ticket to a safe and peaceful holiday. However, read the fine print to make the best out of your policy. Bon Voyage!

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