Travel Insurance: Important Things You Must Know

What is Travel Insurance?

While travelling is a lot of fun, it can be a bother if situations go beyond your control such as a flight cancellation, a medical emergency, and loss of baggage or valuables. Hence it always is a good idea to prepare ahead of such situations and insure yourself and your belongings well before stepping out to explore the world. Insuring yourself and your valuables when travelling is what we call Travel Insurance, which covers your medical and financial losses in the event of a mishap.

Travel Insurance can either be ‘temporary’ or ‘comprehensive’. Temporary travel insurance cover will be limited to the exact duration of the trip, while comprehensive travel insurance will take care of everything. Comprehensive travel insurance can be purchased as a ‘package’ and normally will take care of the following:

• Delayed departure
• Medical costs
• Emergency evacuation
• Trip cancellation or disruption
• Accidents
• Disablement benefit during the trip
• Loss of personal belongings (including passport)
• Delayed baggage
• Legal assistance

Additional insurance can also be obtained for specific conditions such as for travelling to high-risk countries; pre-existing medical conditions and; adventure sports involving risks etc.

Travel insurance can be purchased t cover either a single trip; multiple trips within a year each of 30 days or less or; annual coverage for frequent travelers.

We will next discuss the types of problems that you may face while travelling and how you can be reimbursed in those situations. Specific insurance policies designed for each of these can also be obtained separately.

Trip cancellation or delay

In the event of a trip cancellation or delay, travel insurance will help you get the difference between the refund you get from the trip vendor and the amount you originally paid for the trip. But, one has to ensure that the insurance company is not the same as the trip vendor so that in case the vendor goes insolvent, you’ll still be protected. Travel insurance helps get reimbursement for trip cancellation when sudden business conflicts arise; there is a sudden change of mind; delay in processing your visa or passport; you are ill or injured and; weather-related issues.

Medical Situations

One can avail medical reimbursement in one of the following the ways: if a person falls sick within the duration of his travel or has a pre-existing medical condition known before travelling. In the first case the travel insurance will help you get all your medical expenses covered along with the disability benefits if required, whereas when travelling with a pre-existing medical condition you may have to obtain ‘major medical’ travel insurance before you start your journey. Major medical travel insurance is for travel duration of six months or more only.

Emergency Medical Evacuation

In the event where you need to be evacuated in an emergency and taken to a medical facility, travel insurance comes in handy as it helps you recover all costs even if you seek medical facilities in remote areas, including the cost of transportation.

Accidents

In case of an accident resulting in major illness, disability or death, travel insurance helps pay the costs to the traveler or his surviving beneficiaries similar to what happens in a life insurance.

Travel Insurance does make a trip worthwhile and is must especially when traveling overseas because you never know what situations may leave you looking help. And.. it is always better to be prepared.