With travel season in full bloom, travellers must prioritise their safety and have travel insurance on their checklist. Whether it’s an unannounced medical emergency or flight delay or cancellation, travel insurance is a saviour for all travel woes. It provides security against medical crisis, including existent and probable variants of COVID-19, and non-medical expenditures like loss of luggage, cash or passport.

However, with varying destinations, number of travellers and length of travel plans, it might get difficult to arrive at an adequate coverage that suits your requirement best. This is one of the most important factors one must consider before closing in on a plan as it directly impacts your claim.

Also, there are certain guidelines for minimum limit of travel insurance for a few countries that you also need to be mindful of. So, here’s what you should broadly know before deciding on the right cover for travel insurance.

What is included

The coverage amount in travel insurance slightly differs from health insurance. Sum insured here primarily refers to medical coverage in case of treatment or hospitalisation during your trip. Non-medical expenses like loss of baggage or passport and similar damages are covered separately and not a part of sum insured by default.

Destination based

A critical factor when purchasing a travel insurance plan is determining what sum insured or coverage one should have. This amount is the maximum coverage the insurance firm will pay against your claim in case of emergency hospitalisation.

Thus, while travelling to a foreign land like the U.S., Canada, or the U.K., where medical care is costlier compared with India, it is advisable to shield yourself with sufficient funds. For instance, a simple doctor visit can cost $100-200, while a specialist consultation can cost up to $350. So your travel insurance must factor in your destination and provide coverage accordingly.

Let’s detail out the different types of travel insurance policies to understand the suitable coverage:

Individual travel

The individual travel insurance policy is for a solo traveller. It offers a wide range of benefits with regular coverage, such as reimbursement for misplaced luggage, emergency medical or accidental care, repatriation in the event of a medical emergency or for mortal remains, etc.

Family floater

If you are taking a family vacation, i.e., your spouse and children, this policy proves to be a budget-friendly way to protect everyone. However, make sure the dependent age is as it is usually considered less than 21 years.

Senior citizens’ cover

If you are 60 years or older, having a proper travel insurance plan becomes vital. It protects against ICU costs and doctor visits and offers cashless hospitalisation along with regular travel insurance benefits. Moreover, if you have a pre-existing disease, pick a policy that covers this element. Also, always declare the existing illnesses to the insurer for straightforward claims.

Student travel

With more students travelling abroad for higher education, this policy is appropriate for anyone between the ages of 16 and 35 and for 1-3 years. In addition, the policyholder gets comprehensive coverage for primary utility products such as laptop loss and sponsor protection and for unexpected expenses that may impact their academic performance. This is a much better option than going for a bundled deal with the university-offered insurance as the coverage is far more extensive. Recommended coverage: $1,00,000 for 6 months and $2,00,000-2,50,000 for 1-2 years

Frequent flyer

Designed for frequent travellers, the plan offers coverage for multiple trips within a 12-month window from the commencement date. It, however, comes with a cap on the travel period, limiting it to 30 to 70 days per trip. As a result, always double-check the tenure. Recommended coverage: $2,50,000 -$5,00,000

Exclusions

Despite offering many benefits, travel insurance policies mostly exclude situations like accidents resulting from extreme sports, driving intoxicated or with drugs, etc. Claims for unattended belongings are also not acceptable. Additionally, travel to prohibited destinations or war-prone regions might not be covered.

Select a plan that offers 24x7 support, has a cashless option, and has a wide range of network hospitals. It should also have an easy claims process and a high settlement ratio.

Also, compare the policies and prices online and read the policy documents carefully before making the final purchase decision.

Non-medical expenses like loss of baggage or passport and similar damages are covered separately and not a part of sum insured by default.

Travel insurance policies mostly exclude situations like accidents resulting from extreme sports, driving intoxicated or with drugs, etc.

(The writer is Product Head, Travel Insurance, Policybazaar.com)

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