So, you are all set to apply for a course of your choice at a university abroad. Among the prerequisites for getting admission in an overseas university is an insurance policy that covers you during the entire period of study.

Cost advantage While the easiest option is to go for the university-offered insurance cover, it is not the cheapest. An overseas student travel insurance policy with an Indian insurer can be turn out to be more cost effective. But, you first need to find out whether the university offers a waiver that permits you to opt out of the university cover and take a policy from a foreign insurer. If it does, you can choose an appropriate policy with adequate cover as mandated by the university.

So, how much of a difference can taking a policy from an Indian insurer make? Quite a bit. If a student wishes to buy a travel insurance cover in the US for a sum insured of $50,000, he/she would have to shell out an annual premium of $1,400. The same plan from an Indian insurer would cost ₹10,000-11,000.

The cost advantage apart, Indian insurance companies also provide additional benefits such as- compassionate visit, study interruption and sponsor protection (explained further in the article). University plans typically provide only a medical cover.

Good deal Among the plans (with a sum insured of $50,000) offered by Indian insurers, the Bajaj Allianz Student Companion Plan Standard Cover provides comprehensive cover at a reasonable price. The plan covers medical expenses (including medical evacuation and body repatriation) up to a limit of $50,000 subject to a deductible of $100, which has to be borne by the insured, before the insurer pays for any expenses incurred. The $100 limit however does not apply to medical evacuation and body repatriation.

The plan also provides a personal accident cover — injury leading to death or permanent disability — for up to $50,000. You are also covered for personal liability up to $1,00,000. The plan has a provision for sponsor protection too. In case the sponsor dies or is permanently disabled, the fees paid during the remaining period is reimbursed subject to a limit of $10,000. Plans by many insurers provide cover only in case of the insured’s death and not disability.

Bajaj Allianz Student Companion Plan Standard Cover also provides for compassionate travel — economy class airfare for a family member to visit the insured if he is hospitalized, up to a sum of $7,500.

Other options The HDFC Ergo Student Suraksha Bronze Plan too offers a fairly comprehensive plan but with a smaller cover under two categories. One, the accidental death and the permanent disability cover under the Student Suraksha Bronze Plan taken together comes to $40,000 which is less than the personal accident cover of $50,000 under the Bajaj Allianz plan. Two, the study interruption cover for an amount up to $7,500 is lower than the $10,000 cover by Bajaj Allianz. This provides for reimbursement of fees paid for the ongoing semester in case of discontinuation of studies due to hospitalisation of the insured or serious injury/death of the parents.

Higher costs But HDFC Ergo’s Student Suraksha Bronze Plan comes with a few additional features that are not part of the Bajaj Allianz plan. These include cover for loss of passport (up to $200), delay of checked-in baggage (up to $100) and bail bond (up to $5,000) — payment of bail for the insured in case of arrest or detention. Nevertheless this comes at a cost. The annual premium for the plan stands at ₹13,250 — for study in the US and Canada and ₹5,727 for study in other regions. Bajaj Allianz Student Companion Plan (Standard Cover) is priced at ₹9,089 and ₹4,929 respectively.

A similar cover from ICICI Lombard under its Student Travel Insurance Gold Plan costs ₹14,046 and ₹7,831. Moreover, the personal accident cover at $25,000 is half that offered by other plans.

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