Travel Insurance

Travel insurance is coverage designed to protect against risks and financial losses that could happen while traveling. The risks range from minor inconveniences such as missed airline connections and delayed luggage all the way to more serious issues including injuries or major illness. Travel insurance is a type of insurance policy that covers the risks associated with traveling. It can cover up the costs of trip cancellation, baggage loss, medical expenses, and other losses. It can be for losses during domestic or international trips.

Defining Travel Insurance

Travel insurance, as the name suggests, is an insurance product that is a kind of General Insurance Policy. It is useful for protection against unforeseen damage during traveling and associated financial costs. It is a beneficial plan for those traveling domestically or abroad, especially for those who are frequent travelers. Travel insurance covers the following losses:

• Baggage loss/Loss of personal belongings
• Theft/burglary of bags or personal belongings
• Loss of passport
• Trip cancellation or delays
• Medical urgencies/Accidents
• Trip cancellation or delays
• Disability of the insured person
• Hijack
• Emergency evacuation
• Missed connection/departure
• Bounced airline/hotel booking

Things To Remember

One should check the travel insurance policy to ensure what costs are covered. At times, there may be coverage for more risks than those mentioned above. Many travel insurance plans offer additional risk coverage with add-on premium payments. Some travel insurance schemes are specific to the traveler or to the destination place one is traveling to.

Types of Travel Insurance

Travel insurance policies can broadly be categorized as Domestic Travel Insurance Policy and International Travel Insurance Policy. Most of the time, insurance companies offer a travel insurance policy for a single trip while booking the trip. But one can go for policies that cover multiple trips. The travel package selling companies are usually the ones who offer such policies. At times, insurance companies are in tie-ups with companies/websites/apps on which you book the tickets. Below we discuss types of travel insurance:

Single Trip Travel Insurance Policy – This is a one time travel insurance policy specific to one particular trip

Multi-Trip Policy – Those who travel frequently sh -ould go for a cost-effective travel coverage policy. It covers you for multiple trips to certain destinations over a long duration like maybe for an entire year. This is useful for businessmen and other frequent flyers

Educational Travel Insurance Policy –  Students who go on educational trips, especially abroad can have the benefit of this type of travel insurance policy. There is usually a set limit for the duration of the trip like it can be a maximum of 30 or 45 days 

Group Policy –  When there are too many travelers, they can go for a group travel policy. There is a maximum limit of persons that group insurance policies cover. For instance, HDFC Group Travel Insurance Policy covers 7 people. Insurance providers usually have such offers when there are trips and tours of groups picked up from various places/nations. This also depends on the age of the persons in a group and it is a cost-effective policy if traveling in a group   

Customized Travel Insurance Policies

Apart from these, there can be specific or customized policies by the insurance companies. It can be specifically for senior citizens or families. They can create customized policies like Medical Travel Insurance Policy which extensively covers medical costs. Similarly, customized Corporate Policies can be advantageous for corporates and businessmen.

Benefits

Apart from the several costs that such travel protection plans cover, as mentioned above, there are some major benefits that they provide. These are:

Luggage Benefits

This policy covers the costs of baggage loss. It could be the cases of loss, burglary, or theft. These policies may cover the loss of bags, passports, important documents, cash, or any personal belongings. Also, during an emergency evacuation or any other mishap, the luggage costs can be protected

Cancellation/Delay Benefits

If there is a cancellation or delay in the trip due to any unforeseen reason, travel insurance companies will reimburse the costs in such cases. Cancellations/delays could be due to weather conditions, strikes, or any other cause. They will also provide some alternative benefits like access to toilets, clothing, or food. Also, when you cancel or delay the trip due to any emergency, you can be reimbursed for the costs if you are insured under a travel policy

Medical Benefits

This policy covers medical fees and hospitalization charges. It is for the expenses that incur when there is any medical emergency, illness, or injury during traveling. It covers the costs of hospitalization, ambulance, and certain others. Insurance providers arrange for cashless hospitalization in impaneled hospitals. In case of death or disability of the insured, you can claim the reimbursement for medical costs or hospitalization as well

Alternative Benefits

There are certain benefits like customized policies for travelers, especially for frequent travelers, groups, or senior citizens. It is because their coverage requirements may be different from others and the general travel insurance policies may not suit them. Hence, some insurers provide customized travel protection policies as well The above-mentioned benefits are the major coverages that the travel insurers provide to the policyholders. However, these are subject to the terms and conditions of each policy of the insurer. So, check the T&Cs thoroughly.