If you are like us, this is how you plan for a trip – get all panicky, do last-minute packing, put in extra stuff, struggle to close your bag, convince yourself to take out some stuff and finally, you are done.
Ten pairs of denim, expensive accessories, toiletries and a sarong – you don’t really need this stuff for a vacation. What you need is travel insurance – your way out of all the unexpected events. But what is travel insurance? Is it worth it?
Well, the answer is an all-caps YES. Find out why!
What Is Travel Insurance?
Before we begin, it’s essential that we understand the definition of this policy.
Travel insurance is a type of plan that provides coverage for financial losses and risks that could happen while travelling. These risks range from tiny inconveniences such as missed flights and delayed luggage to more serious problems, including illnesses.
- This plan offers coverage for financial losses and risks that occur while travelling.
- Before choosing a travel policy, it is important to check the claim settlement ratio of the insurer.
- Single trip insurance is meant for people who don’t travel often.
What is Covered Under Travel Insurance Policy?
Now that you know travel insurance meaning, it’s time you know what is covered in it.
Never depending on the type of coverage you take, a policy can cover several damages and losses.
Sickness or Injury
Have you ever thought about what will happen in case you get sick in a foreign land? Even worse, what if you don’t have enough money to pay for it?
While you may think that your health insurance policy will cover you, that’s not really true. This is where a travel insurance plan can help. By now, you already know what is travel insurance.
One of the major benefits of a travel insurance policy is that it covers the medical expenses incurred abroad that your normal health policy does not. Most health insurance plans don’t provide any coverage in foreign countries. A travel policy can supplement the cost if you get sick or injured before or during the vacation.
This is the coverage for the smaller things. Coverage for lost luggage is useful if an airline loses your bags as it can get difficult to get them to pay for it. Moreover, lost baggage causes you the trouble of shopping for essentials. These are unplanned expenses that can mess with your savings.
A policy provides coverage for loss of baggage and passport by reimbursing for the expenses.
No matter how desperately you want to go for a trip, anything can happen at the last minute, leading to cancellations. Sadly, most resorts and cruise lines won’t refund you in case of such cancellations.
Unforeseen circumstances can happen, and you should be covered with a reliable policy.
Personal Accident Liability
If you get involved in an unfortunate accident that causes damage to a third party, travel insurance can help cover liability and legal expenses.
But all companies do not offer this coverage. Make sure to read the policy thoroughly.
Different Types of Travel Insurance in India
Now that we know the definition and meaning of travel insurance let’s understand its various types:
- Domestic and International plans online: As the name suggests, domestic plans are designed for travellers visiting places within the country. As for international plans, it is designed for travellers looking to travel abroad. While a domestic plan covers the expenses that are a consequence of medical emergency, loss of baggage, flight cancellation and delays, permanent disability, and third-party damages, international travel insurance covers all these mentioned expenses along with the financial risks of hijacks and return to India in case of any emergency.
- Medical Plans Online: This type of travel insurance only covers for expenses arising due to medical emergencies and healthcare issues.
- Group Plans Online: As the name suggests, this type of plan is designed for group travel. It’s a much more affordable option for a large group of travellers rather than going for an individual plan.
- Single and Multiple Trips Plans: These two types of travel insurance are designed for individuals looking to go on single or multiple trips respectively. The expenses included in both these types of insurance include medical as well as non-medical insurance.
Also Read: Travel Medical Insurance
Trip Cancellation or Interruption Coverage under Travelling Insurance
Travelling insurance covers trip cancellation and interruption coverage. This is applicable when the traveller cancels flights for a particular reason. It provides coverage for non-refundable and pre-paid flights.
Travelling insurance online also covers trip interruption. This means if for some reason, you have to book an early flight (earlier than you planned), the charges will be covered by the traveling insurance.
When & How to Buy Travel Insurance Policy in India?
Ideally, travelling insurance online should be purchased within 15 days of flight or travel booking. You can buy a travelling insurance policy in India online. The first and foremost step would be to find the right travelling insurance company. Always go for well-reputed names instead of obscure ones.
Before you select a provider, it is highly recommended that you compare multiple travel insurance policies before selecting one. Look for the factors listed below to make a sagacious decision.
What to Check While Buying Travel Insurance Online?
Now that you know what travel insurance is and what it covers, let’s move ahead.
Just like buying anything, you must compare the quote from different travel insurance providers while buying this plan online. When comparing policies, look for the following parameters.
Sum Insured and Medical Benefits
It’s important to know about the coverage you’ll get in case of a claim, as hospitalization costs vary in different countries.
The major reason to take an insurance policy is to get coverage for unexpected events and make claims. So, do check the claims process along with the claim settlement ratio. This will ensure the reliability of the insurer.
Terms of Claims
Most of us skip reading the terms and conditions before signing into a web portal. But with a travelling insurance policy, skipping the terms can become a problem.
Your claims can be rejected, and you may even have to pay more.
We live in a digital world and are used to doing everything online. From buying groceries to getting expensive gadgets, everything is done from the comfort of personal space with a few clicks.
We are sure you want a similar experience with travel insurance. Choose an insurance provider who offers all the services digitally, from buying the policy to making claims.
Did You Know?
The value of gross premiums from domestic travel insurance across India in the financial year 2021 was roughly 828 million Indian rupees. The private sector general insurers had a monopoly on this, while standalone health insurers only generated a small amount of business.
What’s Not Covered by Travel Insurance Plan?
Here’s a list of things that your travelling insurance plan will not cover:
- Health issues that arise from pre-existing medical conditions.
- Loss or damage arising as a consequence of attempted suicide.
- If you are travelling to get medical treatment.
- Death or injury caused by participation in adventure activities.
- If you cancel your trip due to bad weather conditions.
- Irresponsible loss of baggage.
Not a Frequent Traveler? Opt for a Single Trip Travel Insurance
Now that you have understood travel insurance meaning, and planning to buy one for your trip, here’s a tip that can help.
While you may want to travel every once in a while, that isn’t really the case with everyone. In that case, a single trip travel insurance is perfect for you.
As its name suggests, single trip insurance covers a single journey. You can take this policy for domestic or international travel. The number of days for which the single trip policy is valid varies.
Perks You Get with Single Trip Travel Insurance
Like a regular policy, single-trip travel insurance comes with several perks.
Coverage for Missed Flight and Trip Cancellation
Single trip insurance ensures that you are compensated for any last-minute cancellations and missed flights. It reimburses for monetary losses arising out of cancellations, etc.
Loss of Passport or Baggage
You enter the airport, witness the rush and poof – your baggage is lost due to the chaos. When you have trip insurance, you can file a claim for loss of baggage. Another valuable thing you can lose is your passport. Don’t worry. Single trip travel insurance will help you get a fresh passport too.
Medical Cover/Emergency Evacuation
This is one of the most sought-after reasons to take a policy. The cost of healthcare is generally high in foreign nations.
Single trip insurance reduces the financial burden by providing coverage for medical emergencies. It also covers you in case of evacuation.
Word to Remember
Claim, also known as an insurance claim, is a request to your insurance provider to reimburse losses covered under your travel policy.
Now that you are aware of the definition of this policy and what is a travel insurance premium, you might have understood that it is quite important for travellers. Get trip insurance today and safeguard yourself against all the possible risks in an unfamiliar place.
Unfortunately, no. You must buy a travel insurance policy before the commencement of the trip.
Whether you are travelling for leisure or work, unforeseen events like baggage loss, missed flight, theft or medical emergencies can affect your trip. Travel insurance protects you from such problems by providing assistance and compensation.
Anyone travelling to another city or country can take a travel policy, be it a businessman, a student, corporate employee or an individual going to meet their family.
Most companies reimburse you in case of last-minute cancellations. However, you must have an eligible reason stated in the policy for making cancellations.
The only time you can get a refund for your policy premium is if you decide to cancel the policy during the Money Back Guarantee period. This is the period after buying the policy in which you can cancel it or ask for a 100% refund.
No, it is not necessary to have travel insurance; however, it is highly recommended that you buy it if you wish to secure your travel plans from any kind of uncertainty.
One major advantage of travel insurance is that it protects you against any losses that may arise during your travel. However, one disadvantage of travel insurance is that it is expensive and does not cover health issues arising due to pre-existing diseases.
Unlike other types of travel insurance, there is no monthly payment of premium in travel insurance; you have to make a one-time payment.
The 3 key benefits of travel insurance are these – the insurance covers the official cancellation charges, additional transportation expenses for a cancelled/interrupted trip resulting from natural perils, death or medical emergency.
Also Read: what is overseas travel insurance