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Picture this. You have finally gotten the opportunity to visit your favorite overseas destination. You make all the arrangements for the trip itinerary and book affordable connecting flights. Unfortunately, worsened weather conditions led to a trip delay just as you reached the airport. Due to the unannounced delay, you missed your connecting flight and bear multiple losses that are not covered by your airline.
Did you know? In such scenarios, travel insurance can come to your rescue!
Yes! To ensure comprehensive coverage, you can purchase overseas travel insurance before embarking on a foreign trip. Now, you may wonder, what is travel insurance?
Well, read on to learn about travel insurance meaning, its features, coverage, etc.
What is Travel Insurance?
Travel insurance is a policy that provides financial protection for travellers against unforeseen events during their trip. It generally covers medical emergencies, trip cancellations, lost baggage, travel delays, and other unexpected incidents, offering peace of mind while travelling.
Types of Travel Insurance
Based on your unique requirements, there are seven types of travel insurance. Let us discuss them further in detail:
- Domestic travel insurance: This covers your trips within the borders of your home country.
- International travel insurance: This covers your foreign trips against unforeseen medical and non-medical emergencies.
- Schengen travel insurance: Schengen travel insurance is necessary for visiting any of the 29 Schengen region countries and is mandatory for a Schengen visa application.
- Individual travel insurance: This is designed to meet the specific needs of a single traveller.
- Family travel insurance: A travel insurance that safeguards the trip of two or more people is known as family travel insurance.
- Student travel insurance: Student travel insurance provides financial coverage for those pursuing higher education abroad.
- Travel insurance for senior citizens: This plan covers the unique needs of senior citizens travelling overseas also known as travel insurance for senior citizens.
- Single-Trip travel insurance: A travel insurance designed to cover destination-specific needs of a single trip is known as Single-trip travel insurance.
- Multi-trip travel insurance: Travel insurance for multiple trips covers multiple trips taken by the insured member within a year.
Apart from these major types of travel insurance, certain types are included as coverage within a comprehensive plan.
Other Types of Travel Insurance
Here are some less common types of travel insurance:
- Trip Cancellation Insurance: A trip cancellation insurance generally comes as a coverage in a travel insurance plan.The trip cancellation insurance can be beneficial if you have to cancel your international trip under covered reasons.
- Baggage Insurance: Losing your luggage during an international trip can be distressing and expensive. However, you won’t need to worry if you have baggage insurance cover.
Why Should You Buy Travel Insurance?
As with the increase in global travel, insurance has become crucial. Here are some key reasons to purchase travel insurance:
- Covers significant emergency medical expenses overseas.
- Mandatory for travel to destinations like the Schengen Area.
- Provides assistance in life-threatening conditions due to Pre-existing diseases.
- May include dental treatment along with hospitalisation.
- Compensates for trip delays, cancellations, or lost baggage.
- Offers assistance in case of personal liability or lost passport.
Key Features of Travel Insurance
When purchasing travel insurance for an overseas trip, ensure it meets all your specific needs. Here are the key features to look for in an ideal travel insurance policy:
- Coverage: Comprehensive coverage is one of the most critical features. Carefully assess the plan's coverage to ensure it suits your travel needs.
- Premium: Consider the premium cost. The best travel insurance offers extensive coverage at an affordable price.
- Exclusions: Review the policy's exclusions and Terms & Conditions (T&C) to avoid unexpected issues. Comparing policies from different providers can help identify potential limitations.
- Pre-existing diseases: Check if the policy covers pre-existing medical conditions. Many providers may not offer hospitalisation assistance due to such conditions, so it is essential to verify this with your insurance provider.
- Modern benefits: Opt for a plan that includes modern benefits like emergency evacuation, business class upgrades, and companion coverage. These features ensure comprehensive protection throughout your trip.
- Claim procedure: Look for an easy and efficient claim process. Consider factors such as the claim settlement ratio, approval time, and whether cashless claim settlement is available in foreign countries.
- Trip Delay or Cancellation: A good travel insurance plan should compensate for delays exceeding a certain duration or cover expenses due to trip cancellations caused by weather or mechanical issues.
- Loss or Delay of Baggage: Ensure the policy offers coverage for lost or delayed checked-in baggage.
- Medical Cover: A comprehensive plan should cover hospitalisationand emergency medical transfers to nearby healthcare facilities in case of unforeseen medical events.
How Travel Insurance Works?
Travel insurance provides financial protection against unexpected events during your trip. Below is an explanation of how travel insurance works:
- Purchase the Travel Insurance Policy: Once you plan your travel, you should buy a travel insurance policy that would suit your needs and budget.
- Coverage: Once you have purchased the policy, the coverage usually starts from the day you depart and ends when you return. You must mention your trip start and end dates at the time of purchasing the policy.
- In case of Mishap: While travelling, if you face any medical or non-medical emergency, you can contact the insurance company for further assistance.
- File a Claim: If you encounter a medical emergency, you can ask your insurer to assist with the cashless network provider, and in a medical emergency you may file a reimbursement claim as soon as you return back to your home country. The process will include providing documentation and details of the incident.
- Reimbursement: Once the claim gets approved, the insurance company will reimburse you for the covered expenses. In case of rejection, the insurer shall reach out to you with the reason for rejection.
Eligibility Criteria and Basic Requirements to Buy a Travel Insurance Policy in India
In India, buying a travel insurance policy is a straightforward process with specific eligibility criteria and basic requirements. Here’s what you need to know:
Eligibility Criteria to Buy Travel Insurance in India
To buy international travel insurance from an insurer in India, you must be an Indian passport holder. A plan is typically available for children aged Day 1 to 24 years and for adults starting from 18 years to a lifetime.
Basic Requirements
- Personal Details: Name, DOB, contact info, passport number, and address proof.
- Travel Information: Trip purpose, dates, destination, and itinerary.
- Medical Declaration: Disclose any pre-existing conditions; medical check-ups may apply for seniors.
- Policy Duration: Should cover the entire trip, including departure and return dates.
- Payment: The payment of the premiums can be done through debit/credit card, net banking, or UPI.
- Additional Documents: Proof of admission for students or business letters for corporate travellers.
Advantages of Buying Travel Insurance
Travel insurance provides significant benefits by comprehensively protecting your trip. It offers coverage for both medical and non-medical emergencies.
Here are the key advantages of having well-chosen travel insurance:
- Medical Emergencies: Provides financial assistance for medical emergencies that occur abroad.
- Trip Cancellations: Covers non-refundable expenses if you must cancel your trip due to unforeseen circumstances.
- Liability Charges: Offers protection against liability charges incurred during foreign trips, as specified in the policy terms.
- Last-Minute Changes: Covers costs associated with last-minute trip cancellations or modifications due to valid, unforeseen reasons.
What Does Travel Insurance Cover?
Travel insurance offers protection against various damages and losses, depending on the coverage you select:
- Injury or Sickness: Covers medical expenses abroad that are not included in your regular health insurance, supplementing costs for illness or injury during your trip.
- Lost Luggage: Covers expenses for lost, damaged, or stolen luggage. Airlines may provide compensation of up to $3,300 domestically and $1,750 internationally, but receipts and timely claims are generally required.
- Last-Minute Cancellations: Covers cancellation costs, as many resorts and cruise lines do not provide refunds for cancellations or impose significant fees if done within two weeks of travel.
What Does Travel Insurance Not Cover?
Travel insurance provides significant protection, but it is crucial to understand its limitations. Here are some common exclusions:
- Political Unrest: If you're travelling to an area with political unrest, check if your policy covers cancellations due to issues in that area.
- Self-inflicted Injury: A travel insurance plan shall not cover expenses incurred due to self-inflicted injuries.
- Natural Calamities: Travellers' losses incurred due to pre-informed natural calamities, such as earthquakes, drought, flood, etc., are not covered.
- Hazardous Activity: Expenses arising out of hazardous activity, the influence of drugs or alcohol, or consequences of war/nuclear perils are not covered.
How to Calculate Travel Insurance Premium?
Travel insurance premiums vary based on several factors, including trip duration, destination, number of travellers, plan coverage, and pre-existing disease coverage.
To find the best travel insurance at the most affordable premium, compare policies from different providers and use their travel insurance premium calculators.
Here are the steps to calculate your travel insurance premium:
Step 1: Identify the type of travel insurance you need. If you travel with multiple people, choose group travel insurance.
Step 2: Visit the insurance company's official website and locate their premium calculator.
Step 3: On the premium calculator, provide details such as trip duration, number of travellers, ages, and whether any travellers have pre-existing medical conditions. Provide accurate information to get an accurate premium quote for your desired travel insurance.
Step 4: After entering the required details, click ‘Get Quote’ to receive the final premium amount for your plan.
Following these steps will help you determine your travel insurance premium. Remember that all travel insurance policies come with terms and conditions.
Busting Myths Around Travel Insurance
Travel insurance protects you from unexpected events during international travel, such as trip delays, lost luggage, or medical emergencies. It ensures you are covered even before your trip begins, safeguarding your bookings and accommodations.
However, several myths lead people to underestimate its importance. Let's clarify some common misconceptions:
Myth 1: Nothing can go wrong on a trip
Fact: Unpredictable events, including illness, lost passports, and trip delays, can occur. Travel insurance provides protection in these situations.
Myth 2: All travel insurance plans are the same
Fact: Travel insurance plans vary significantly based on destination, activities, and age. Choosing a plan tailored to your specific needs ensures the best coverage.
Myth 3: No plans cover pre-existing conditions
Fact: Some plans, such as those offered by Care Health Insurance, cover medical expenses related to pre-existing conditions, providing comprehensive protection.
Myth 4: It is fine to book insurance later
Fact: Delaying insurance can leave you vulnerable. Travel insurance should be purchased well in advance to protect against unexpected emergencies.
Myth 5: Making a claim is difficult
Fact: Filing claims under travel insurance for events like trip cancellations or lost luggage is generally straightforward. A reputable plan ensures a smooth and hassle-free claims process.
Common T&C of Travel Insurance Providers in India
To prevent fraudulent claims, insurance plans include specific terms and conditions, such as:
- The policy must be purchased before the trip's departure date. Travel insurance can only be bought before leaving your home country.
- Purchasing travel insurance well in advance may grant you a free look period to review and understand the policy thoroughly. This option may not be available for last-minute purchases.
- Reimbursement claims, like expense receipts, will not be approved without supporting documentation.
- The insurance company shall not approve claims for foreseeable events.
- Your travel insurance benefits shall not cover expenses incurred due to breach of law, self-harm, or crimes.
Secure Your Next Trip With The Right Travel Insurance
Purchasing travel insurance is essential when planning international travel. We hope this blog has helped you select the best travel insurance for your needs.
If you are unsure about which travel insurance to choose, visit the Care Health Insurance website to explore destination-specific plans.
Care Health Insurance offers international travel insurance plans designed to cover your finances while travelling overseas. Opting for plans from Care provides comprehensive coverage at an affordable premium and a hassle-free claim settlement process, ensuring a worry-free travel experience. Don't delay! Secure your trip with travel insurance from Care Health Insurance today.
Disclaimer: All travel insurance features, benefits, coverage, and claims underwriting are subject to policy terms and conditions. Kindly refer to the brochure, sales prospectus, and policy documents carefully.
