What is Travel Insurance?

What is Travel Insurance?

Travel insurance is an insurance policy which is intended to cover medical expenses, losses due to trip cancellation, loss of luggage, accidents and emergency evacuation when travelling both domestically and internationally.

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Types Of Travel Insurance

• International Travel Insurance Plan

Most general insurers offer customized travel insurance policies, as each destination has different requirements. Most international policies offer general features like cashless hospitalization, online application process, no medical test for travelers under the age of 80 years.

• Senior Citizen Travel Plan

With senior citizen travel plans, senior citizens can have a hassle free globe-trot. This kind of travel insurance offers services like cashless hospitalization, medical concierge, international SIM cards, pre-existing diseases cover, trip cancellation and so on.

• Student Travel Plan

Student travel insurance offers financial and medical cover for those students who travel abroad, for higher studies. Medical expenses abroad cost so much that they could drain the bank accounts of parents. Just availing a student travel plan keeps this situation at bay. These plans can also be availed by those students who are already pursuing higher education in foreign countries.

• Asia Travel Plan

This type of travel insurance is specific to countries falling in the Asian continent. This covers most of the Southeast Asian countries like Malaysia, Singapore or Thailand. Benefits covered under the policy are bodily injuries resulting from an accident, emergency finance, loss of passport and so on. The exclusions would be mentioned in the policy.

• Corporate Travel Plan

Corporate travel insurance plans are procured by employers who intend to offer insurance to employees travelling abroad. Corporate plans are customizable as per company’s needs. These plans offer sufficient cover for both medical and travel related risks. These plans are available for single, round and multi-round trips.

• Domestic Travel Plan

Domestic travel insurance can be availed by those travelers who wish to travel anywhere in India. Domestic travel insurance plans offer cover for medical expenses, loss of luggage, cancellation and/or delay of the trip, customer support at all times and so on.

• Schengen Travel Plan

Tourists travelling to the Schengen countries for a maximum of 90 days must avail a Schengen travel insurance. This policy offers benefits of covering medical emergencies, 24/7 customer support, bodily injuries due to an accident and so on. Schengen area includes Czech Republic, Denmark, Finland, Belgium, Austria, Estonia, Germany, France, Iceland, Greece, Latvia, Hungary, Italy, Lithuania, Liechtenstein, Luxembourg, Malta, Netherlands, Norway, Portugal, Poland, Slovakia, Spain, Slovenia, Switzerland and Sweden.

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How To Calculate Premium For A Travel Insurance Policy?

The below mentioned factors determine the premium of a travel insurance policy:

• The Sum Insured: It is quite obvious to expect the amount of money you wish to get insured for to directly have an impact on the premium. Higher the sum assured, higher would be the premium. Consider the destination while you decide on the sum assured.
• The Type of Insurance Plan: Major types of travel plans include single trip plan, multi trip plan, student plans and senior citizen plans. Premiums payable would be calculated on the basis of your choice of travel insurance plan.
• Coverage: Depending on the nature of travel, you can avail add-on covers with travel insurance policy. For example, you can avail home insurance, cover for risks related to adventure sports and insurance for valuables and so on. Availing these add-on covers attracts a higher premium.
• Duration of Stay: Travel insurance premiums will be directly proportional to the length of stay.

Travel Destination: The travel destination is a significant factor in determining the premium of travel insurance plan.

Health and Age: Age and health of a traveler play an important role when underwriting the travel insurance policies. For example, pre-existing diseases and diseases due to drug abuse or alcoholism are not covered under a travel insurance policy.

Eligibility Criteria For Buying Travel Insurance Policy:

Below mentioned are the general eligibility criteria for availing a travel insurance policy:

• Family or International Travel Insurance: This plan covers two adults aged up to 60 years along with two children aged less than 21 years. Floater benefits can be availed with family travel insurance plans.
• Student Travel Insurance: Most insurers cover students aged between 16 to 40 years who are enrolled in a foreign institution for higher studies. Existing Indian students are also eligible for student travel insurance policy.
• Senior Citizen Travel Insurance: It’s not compulsory for seniors aged up to 85 years to undergo medical tests while availing a Senior Citizen travel insurance policy.
• Schengen travel insurance: Adults aged up to 70 years and infants above 90 days are eligible to avail Schengen travel insurance. The purpose of travel must be either business or tourism.

How To Claim Travel Insurance?

Travel insurance claims are of two types: Cashless Claims and Reimbursement Claims.

• Cashless Claims: For making a cashless claim for an emergency medical treatment or hospitalization abroad, policyholders must produce the travel insurance document to the healthcare provider. Cashless treatment will be offered and the policyholder must inform the insurer on the incident. The medical bills are directly paid to the healthcare provider by the insurer. With cashless claims you can avail cashless hospitalization.

• Reimbursement Claims: Under this type of claim, the insured must contact the insurer to initiate the claim process. The insured must furnish all requisite documents to the insurer on returning from the trip. The insurer will then verify if the instance of claim is covered under the policy. Post validating the claim, the sum assured would directly be transferred by the insurer to the insured’s bank account.

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Below mentioned are the documents to be furnished to initiate a travel insurance claim:

• Travel insurance policy ID
• Name of the policyholder
• Contact details: phone number and email id
• Diagnosis report for medical claims
• Place where the loss occurred.
• For accidents - date and time
• Description of the loss

What Are The Documents Required To Claim Travel Insurance?

The table below shows the documents required to claim travel insurance:

Below mentioned are the advantages of travel insurance:

Advantages Of Travel Insurance

• Travel insurance plans cover flight delays, trip delays, and so on, when policyholders make long foreign trips.
• Expenses of trip termination are also covered under travel insurance plans.
• Medical treatment, hospitalization and hotel accommodation for medical emergencies are also covered under travel insurance plans.
• Policyholders can get customized plans as per their travel destination. The cost of premium varies across destinations.
• Policyholders are eligible to avail cover for personal liabilities, accidental death, travel delays, legal expenses, dental treatment, repatriation, emergency reunion and so on.
• Most travel insurers offer 24/7 customer service support with assistance for incidents like loss of documents and accidents.

Inclusions and Exclusions in Travel Insurance Policies

International travel plans:

Student travel insurance plans

Family Travel Insurance Plans, Corporate Travel Insurance Plans and Senior Citizen Travel Insurance Plans

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