Travel apps are being reinstalled on phones as cooped up wanderlusts are beginning to break their more than two-year hiatus on travel. Travel for business, pleasure, studies and personal reasons are being planned after being shelved previously. On the other hand, the risks from Covid have reduced but not eliminated. And more recently Monkey pox has been added to the list of medical threats in international travel. Travel advisories by various governments are beginning to address the latest scare. . If sequels are bad, this rehash may be soul crushing.
In the current context travel plans are no longer being postponed despite two concurrent multi-national diseases on the spread and Russia Ukraine conflict raging on. In such cases informing oneself of the various ways travel insurance can mitigate risk, specific to the current global situation, may prove useful. Also, specific to the destination one is travelling to, relevant information gathered from review sites, friends and family and acquaintance, can be a practical guide as well.
Medical protection
The risk of medical costs, including Covid hospitalisation, when on an international trip are to be covered sufficiently. Travel insurance for a single trip comes with a sum assured ranging from USD 100,000 to USD 500,000 cover, which is applicable to medical and accident reimbursement (with a general co-pay of USD 100). Considering the high cost of medical services upon hospitalisation in developed countries, a higher limit may be useful.
But the policyholder must differentiate between a medical reimbursement in travel insurance and reimbursement for accidents. Rakesh Jain, CEO of Reliance General Insurance stresses that “certain travel policies only cover accidental death and accidental hospitalization, but not medical hospitalization. If a customer opts for the medical expense feature in their travel policy, only then will their emergency medical costs such as hospitalization costs, outpatient and cashless hospitalization be covered during a foreign trip”. Although most policies club medical and accidental insurance in travel, it is important to note the difference and purchase accordingly.
Reimbursement can be a tough proposition even with credit/travel cards, as one has to meet the payments up-front before being reimbursed. Policyholders must choose a travel policy which offers the highest network hospitals under coverage to ensure cashless feature when hospitalised.
Covid infection
Strictly speaking reimbursements related to a Covid infection, when hospitalisation is not involved, are outside the scope of medical expenses in travel insurance. These are related to quarantine lodging and boarding expenses. But travel policies cover for these as well. Tata AIG’s policies cover various risks from Covid comprehensively. On being infected while on trip and needing to quarantine, the travel insurance will reimburse all non-refundable expenses on account of trip curtailment and reimburse the associated accommodation expenses from the quarantine. The policy is automatically extended by 7 days if a lockdown or emergency is declared in the destination country. On being diagnosed with Covid prior to the trip but after making arrangements, Tata AIG policy will reimburse the non-refundable portion of the trip.
Monkeypox
Monkeypox is an infectious disease and as with all other diseases exposures, reimbursement can happen on hospitalisation of the insured traveller (with a medical expense clause). Regarding Monkeypox, Raghavendra Rao, Chief Distribution Officer, Future Generali India Insurance says that “along with outpatient treatment cost, consultations, diagnostic expenses and pharmaceutical expenses would be payable as per policy terms”. But he also adds that, isolation expenses (quarantine boarding and lodging), without active treatment will not be covered in travel policies and that active treatment is a must for reimbursement in travel insurance.
Travel insurance can provide other useful features as well apart from medical protection. Policyholders must look for automatic extension clause which triggers on unavailability of flights or reimbursements on missed connections for unavoidable reasons. Along with medical shield, a higher cover also provides a higher third-party liability protection (if the clause is included) which covers any legal liability of any third party damage incurred by the policyholder. Apart from covering loss of baggage in travel, travel policies also include burglary protection which covers any loss from policyholders’ absence at home.
While travel plans cannot be put on the backburner anymore, a well-researched travel insurance can take the edge off any risk involved in travels. A policy for a 30-year-old travelling for a week to USA will cost about ₹1,800-2,000 across insurance providers. Considering the benefits which outweigh the cost, a travel policy can be a good company on a trip.