Travel Insurance

Travel Insurance can help cover medical expenses or financial losses you might incur while travelling. Travel insurance is mandatory for trips to UK, US, France, Austria, Spain, Greece, Portugal and Germany. It’s often pitched as the best protection for those travelling domestically or overseas to minimise financial risk and to avoid mental stress. Thus one should take travel insurance even in those countries where it is not mandatory.

Why do I need Travel Insurance??

There are several questions to ask yourself when trying to determine whether to buy travel insurance or deciding what type of insurance you’ll need:

  • Will you be travelling overseas?
  • Are you planning to participate in extreme sports?
  • Cost of the trip back home if an emergency arises and you need to get back?
  • If you or someone who is travelling with you gets sick, how to arrange for medical care cost?

These  are all potential problems that can turn your dream vacation into a nightmare if you aren’t prepared.

What protection does Travel Insurance provide?

1.Disruption to the trips:  It’s no secret that when you travel, there is much that’s out of your control. Flights can be delayed or you might need to return home if an emergency occurs. Without travel insurance, disruptions to your trip can end up costing you a fortune. In many cases, you lose the money you’ve already paid, and have to pay for new bookings too. Many travel insurance packages will cover you for incidents that are out of your control, so that you don’t have to spend your own money if something goes wrong.

2.Getting help overseas:  Having the right level of travel insurance is important while travelling. ravel insurance can ensure that you get the best quality of care and you can be moved, either back home or to a better medical facility, if needed

3.Protection from medical cost: If you require medical attention while travelling, you may be liable for the cost of your treatment if you don’t have travel insurance. In many countries, medical treatment for visitors can be incredibly expensive. Mediclaim will not pay or reimburse you for any medical expenses you incur overseas.

4.Reimbursement for the losses:If your luggage is stolen, lost or damaged overseas, you can end up significantly out of pocket – and if you don’t have travel insurance, you will be responsible for replacing your items. If you take out the right insurance, however, you can be reimbursed for your losses and expenses, meaning that you won’t lose money due to an airline or hotel blunder, or a thief’s wrongdoings.

What Travel Insurance does not cover?

Pre-existing illness like diabetes, cardiovascular problems and so on. Also, losses that incur due to breaking foreign laws or making frauds are exclusions. In addition, losses caused due to wars and terrorism and commitment of suicide are not included.

What should be the size of cover?

Your destination determines the size of cover, that is sum insured required. Since medical cover is the main feature of travel insurance, sum insured should be decided on the basis of how expensive medical services are in the country or city you are travelling to.Premium is high for places where health costs are more. Medical treatment is significantly costlier in countries like US and Canada than in South East Asia and this drives the premium difference. In Japan, given the history of natural disasters, premium rates are higher than in other Asian destinations. Some insurers also provide cover for adventurous sports activities.
An annual travel policy will be cheaper than a single trip policy if you take more than two holidays a year. A single-trip policy is ideal for a one-time vacation or business tour, while a multi-trip plan of one-year duration is perfect for frequent travellers.
The maximum number of days covered in a single-trip policy can vary from 15 to 45 days depending on the insurer.

Bottom Line

While planning a vacation, you use words like unwinding, adventure, fun and entertainment, and not accident, illness and medical emergency. So, you usually don’t bother to buy a travel insurance plan unless it is mandatory. But by spending a couple of thousand rupees, you not only insure yourself against financial disaster but buy yourself peace of mind.


By Sonika Rastogi

PG in IT, Sonika has total experience of 12 years. She has worked in the fields of Financial Planning, Investment Advisory, Experiential Learning and Overseas Education. Sonika’s strength lies in Research, Operations and Education.

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