The World is a book and those who do not travel see only one page. Here comes summer…It is holiday time…Time to take that amazing vacation. All of us must have made our plans for that exclusive elusive holiday. For the rich and famous it must be Ibiza, St Lucia, Hawaii or the Bahamas. Many of us go to Australia particularly the beaches of Gold Coast, surf kissed sands of Durban, Safaris in the Serengeti, island of Mauritius or the shopping trip to Dubai.
In the middle of all this there may be trouble in paradise. Here we are reminded of Bilbao Baggins in the lord of the rings who says it’s a dangerous business, Frodo, going out your door, and if you don’t keep your feet, there’s no knowing where you might be swept off to. We have heard of the Arab Spring in Egypt famous for its pyramids a popular tourist destination, or the gang warfare in Mexico; South Africa can also be an unpredictable dangerous country. Do you still think you don’t need travel insurance? To know more about travel insurance please look up IndianMoney.com.
So What Is Travel Insurance?
Travel insurance is basically an insurance that covers medical expenses, financial default by travel suppliers and other losses incurred while travelling either in one’s own country or abroad. Temporary travel insurance can usually be arranged at the time of booking to cover the duration of a single trip or a multi-trip policy which covers an unlimited number of trips within a set time frame.
Do I Need Travel Insurance:
· Your Flight has been cancelled.
· Your wallet and bag has been stolen along with your cash and passport.
· You have been in an accident and you need medical treatment.
· You need to cancel your trip due to an illness.
· You have a medical emergency in a foreign country.
· A Hurricane forces us to vacate our resort (Remember Sandy a few months back in New York).
· A Terrorist attack (It can happen anywhere at any time)
The above listed cases can easily happen to anyone of us and none of us can afford to take them lightly. We remember Murphy’s Law If Anything Can Go Wrong It Will.
My Trip Is All About Unwinding Who Wants To Think Of The Bad:
Mr.Abhijit had long planned his holiday to the USA for himself and his spouse. This included a couple of days of fun and frolic on Miami Beach. However after a day his wife had a severe case of Gastroenteritis and required to be immediately hospitalized. The cost incurred was about 4000 Pounds. We know that USA is the costliest country for medical treatment. This when converted to rupees is about 3-4 Lakhs. This is a huge sum of money. Here Mr Abhijit had not taken travel insurance as he felt it was not necessary as this was a one off trip. After incurring these costs Mr. Abhijit will never leave home to travel abroad without travel insurance. ‘Once Bitten Twice Shy’. It would be important to note that if you travel to countries like Canada, USA, and Thailand where medical benefits are very pricey it is best to take travel insurance. If you want to learn about travel insurance please lookup the website IndianMoney.com.
How to determine how much insurance I need:
· This mainly depends on the country we are visiting. Medical treatment is very expensive in USA, Canada and the exotic place of Bangkok. We also need to note that countries such as Spain and Greece have the highest cases of tourists falling ill.
· Duration: Here a longer trip requires a higher premium. Annual multi trip plans turn out to be cheaper than single-trip policies. This is because the insurer doesn’t have to bear administration expenses.
· If you are involved in certain adventurous activities like trekking, skiing and water sports it is necessary to make this known and higher travel insurance might have to be paid.
· Here it is necessary to compare the various online plans to note their online services, hospital networks covered , claim processes, toll free numbers and so on. Do not buy the travel policy merely by seeing the premium amounts and sum insured.
What’s Covered Under Travel Insurance:
· Oh My God I Am Unwell: God Forbid you are stricken by Jaundice a week before your scheduled cruise and you are forced to cancel it. You will have a very high cancellation penalty and lose on the value of the trip. Here travel insurance helps to tide over this crisis.
· Transport Breakdown: You are on the way to the airport and your cab breaks down. You miss your flight. Travel Insurance covers loss due to missed connections and delays.
· Baggage Loss: Here we have reached our Greek port, but our luggage has gone elsewhere. Here the luggage has missed its port of call. Here travel insurance covers the cost of baggage transport to the intended port. In case the baggage is permanently lost the travel insurance will help us recover the necessary costs. Of course we loss all those memorable photos but we save our financial losses.
· Medical Expenses: Let us consider that in your eagerness to jump into the swimming pool your leg got caught on one of the side bars and was fractured. You are in Thailand where the average medical expenses are 2000 Pounds or about 1.5 Lakhs. A very high cost has been incurred but our travel insurance helps us to cover the necessary expenses.
· Financial Default By A Travel Provider: Here in the age of global financial defaults there is no guarantee on the financial health of our travel operators. Some travel insurance policies cover defaults by airlines, cruises or hotels.
· Emergency Evacuation: Let us consider we have an emergency, a heart attack at sea on a cruise liner. Here medical evacuation by helicopter may be necessary. These costs are covered by travel insurance
· War and Terrorism: Acts of Terrorism, Violence due to war or strikes are generally covered by travel insurance. However here it is always good to read the fine print and check the policy terms and conditions to determine how the coverage occurs. Sometimes acts of terrorism at the travel destination are covered only for 7-25 days.
Students Travel Insurance:
· Many students in India travel to destinations like USA, UK, Canada, Australia, Ireland and so on for their Medical, Engineering and other studies. Medical expenses in these countries are prohibitively expensive? Can we expect to pay such high costs and also our tuition fees at the same time?
What Is Covered ?
Here many parents send their children to these countries spending their hard earned money where they live a hand to mouth existence in these countries .Medical costs here are very high in countries like USA and Canada. Let us consider a disease like Viral Fever whose medical treatment costs a few thousands in India. What would be its cost for medical treatment in the USA? Here a single dollar is about INR 55 and the exchange rate fluctuations when factored in state a huge cost. Here the travel insurance takes care of charges due to medical emergencies in the host country right from the time the student boards the flight out of the country.
Hospitalization charges might be covered even if the student falls sick enroute to the host country and is hospitalized in another country. Here in addition to this the round ticket cost of a close relative if hospitalized for more than 7 days and also costs of flights to visit if a close relative is hospitalized back home is provided. Many insurers offer a bail bond of about $5000 if the student gets into trouble with the law. Here the parents of the students are the sponsors of the tuition fees of the students and if there is discontinuation in paying of the tuition fees due to death or disability of the sponsor, the insurer reimburses the remaining tuition fee up to $10000 so that the student can continue the course. Also the insurer may take the students liability risks of say $100000 for any unintended damage caused by the student to public or private property. There might also be a loss or damage reimbursement due to a racial attack.
Cost of this Insurance:
· Here an individual of about 50 years can take travel insurance from a private company in a range of INR 7000 to about INR 10000.This is a single trip to USA for about 2-3 months. Here accident and medical insurance can vary from $ 50000-$ 500000.
· Dismemberment may range from $10000-$25000.Flight delay for 12 hours may range from $10-$100.Checked Baggage Loss from $500-$1000. Loss of passport around $250.
· Medical Treatment for surgeries up to a maximum of $ 10000.ICU charges $3000/day for 7 days. Hospital charges of about $ 1500 per day for 30 days. Diagnostic charges and ambulance charges $ 400-$500.Physician charges up to $ 75/day for about 10 visits.
· For a short trip of about 9 days for a family of 4 in Asia excluding Japan we pay around INR 3000 with medical cover in the range of $15000-$25000.Accident cover can be about $ 7500.
· For student insurance to USA for a year we pay a premium of about INR 20000-25000 to get a maximum coverage of $100000-$250000 for a student of about 28-30 years.
· For student specific plans we can get an insurance which ranges between $200000-$500000 by paying premiums in the range of INR 15000- INR 25000.
· Some countries with a higher risk perceptive like Japan which are struck by earthquakes, tsunamis and volcano’s premiums are generally higher.
I would like to end this article by quoting the famous phrase ‘Better Safe Than Sorry’ which means that it is better to be prepared by taking travel insurance than regret later. I would like to remind all of you that the team of Financial Planners at IndianMoney.com are always there for you to plan your Travel Insurance needs in a most efficient manner and are always willing to lend you a helping hand. You can explore this unique Free Advisory Service just by giving a missed call on 02261816111.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
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