Travel Insurance

Features of a Perfect Travel Insurance Plan

Before you go on a holiday, understand what you must prepare for. Other than packing, booking flight tickets etc., know what travel insurance is and how it will protect you. Here are some of the best travel insurance coverage benefits to look for in an overseas travel insurance plan:

• Journey Coverage

  A perfect travel insurance plan will help you with many emergencies while travelling, such as:

  • Travel Assistance: New city or a new country, your travel insurance plan will provide you with every urgent assistance ranging from legal help to steps to get your duplicate passport.
  • Policy Extension: If, for some reason, your trip is extended and your flight is delayed for some days, then your overseas travel insurance will be extended for a fixed period.
  • Flight Delays: If your flight is delayed for specific reasons, your travel insurance policy will cover additional costs per the policy terms.

• COVID-19 Coverage

  Since the havoc caused by COVID-19, most insurers will help you with any of the following emergencies:

  • Trip Cancellation: Trip insurance with COVID-19 coverage will offer the coverage if you or your immediate family member is diagnosed and hospitalised before the trip. In such a case, your non-refundable and unused amounts, like hotel booking and ticket costs, will be reimbursed per the policy terms.
  • Automatic Extension: Some travel insurance with COVID-19 cover offer policy extensions in case of a lockdown in your destination country; however, confirm this before buying.
  • Medical Expenses: If you or anyone travelling abroad with you is diagnosed with COVID-19 abroad, then your COVID-19 insurance for international travel will provide cover for these medical expenses & treatment.

• Baggage Coverage

  With airlines misplacing baggage so often, it's only fitting that there is a safeguard you can turn to. Many travellers’ insurance policy also offers the benefits of flight travel insurance like the following:

  • Covers Lost Baggage: Flights may misplace your luggage or be stolen. An overseas insurance plan will help you with necessary personal expenses like clothing, medicines, and toiletries.
  • Covers Delayed Baggage: If your baggage is delayed, your overseas travel insurance policy will pay for the necessary items to be purchased until you get your bag back.

• Medical Coverage

  What is worse than falling sick while travelling? Especially during a holiday when you have a budget to stick to, getting injured or suddenly falling sick is seriously disappointing. Thankfully, your travel insurance coverage has your back in case of different medical emergencies:

  • Medical Emergencies: If you need medical assistance due to an accident or sudden illness, your foreign travel insurance from India will cover you. Many travel insurance companies in India even offer cashless travel insurance. Your insurer can settle the treatment expenses directly at the network hospital through this.
  • Medical Evacuation or Repatriation: If you're injured or need medical assistance abroad and must be evacuated to a safer place, your travel insurance coverage will include or are, unfortunately, in a fatal accident, the travel insurance policy will cover the required costs of repatriating your remains.
  • Study Interruption: This one is especially for students abroad. Their unused tuition fee will be reimbursed if they can't complete their studies for the listed reasons.
  • Compassionate Visit: If you're hospitalised abroad and need someone from your family to come to help you, your travel insurance coverage will include a two-way ticket for them.

• Add-On Covers/Optional Covers

  Nowadays, you can easily personalise your plan thanks to travel insurance options available in India. These are done by purchasing ‘extra benefits’, optional or add-on covers at some extra premium.
  If you need specific protection not commonly offered by different types of travel insurance plans, then these optionals will go a long way to protect you:

  • Adventure Sports Cover: This add-on will let you freely enjoy winter sports, adventure activities, etc. while travelling abroad. Any medical expenses caused due to these activities will be taken care of per the travel insurance policy schedule.
  • Home Burglary/Fire Insurance: This will protect your house from any loss caused by a break-in, theft, or fire while you are outside the country.
  • Emergency Hotel Accommodation: If your trip is extended due to any urgent reason, this optional coverage will offer benefits of a hotel stay insurance, such as reimbursement for your emergency accommodation costs.

Travelling after months of planning and savings is one of the best feelings. As more people take up travelling again, one thing they easily dismiss is insuring their trip. Travel insurance not only serves as a backup during financial difficulties, but it also offers you 24X7 global support if you need it.

Sadly, there are many misconceptions about travel insurance that discourages people from buying them. We have covered a few of these travel insurance-related myths along with the actual facts!

• I don't have any Health Issues, so Travel Insurance is Useless!

  Your overseas travel insurance is not just to cover your health emergencies; it also takes care of other emergencies that will cost you considerably abroad! This includes losing your passport, missing your flight for a valid reason, getting mugged, accidentally damaging someone’s property and more.

  What’s more, even if you’re fit and fine, getting into an accident or a serious injury while travelling isn’t something you can control. In such cases, you’re better off with a travel insurance policy.

• Travel Insurance is Only Useful for Frequent Travellers!

  Frequent travellers can indeed get an annual trip insurance plan for themselves and get many benefits from it, but it works the same way for other travellers too.

  While frequent travellers save a lot of time and money on their annual trip insurance plans, those going for a single trip travel insurance can benefit a lot from their plans as they are not as expensive. These offer great benefits at a nominal cost.

• I Can Report Any Accident & File a Claim Once I'm Back in India.

  Even if you are on a short trip abroad, you shouldn't wait to return home in case something goes wrong. This includes getting into an accident, losing your wallet, missing bags, stolen passports etc.

  Most insurers need you to inform them about an incident within 24-48 hours. You also need to report these incidents to the police or other local authorities so that you can file a claim back home.

  What's more, many insurers won't entertain any claims after a certain period, mostly 30 days after you have returned to India.

• Old People Can't Buy Travel Insurance Policies!

  This is a baseless claim! Just because there’s a general age bracket for eligibility, senior travellers can’t be denied travel insurance plans! While standard plans are available for people aged anywhere between 6 months to 60 years, you will find many plans specially made for senior travellers. You can easily find these international travel insurance online. In fact, there are enough senior citizen travel insurance plans in India for anyone beyond that age and some insurers don’t even have an upper age limit!

• It's Just a 3-day Trip, I Don't Need to Waste Money on Travel Insurance!

  No matter how short or long your trip is, do you really want to risk it? That is the unpredictability of life- horrible weather, emergency hospitalisation or unfortunately losing your stuff are a few things that can happen to anyone at any time. In fact, on a shorter trip you’d be too stressed to deal with any medical emergencies alone, so why not let travel medical insurance take care of it? If you’re still not convinced, then you can easily find cheap travel insurance online that fit your budget just perfectly!

• I Only Need Travel Insurance for Schengen Countries.

  While you can’t visit many European countries without proper Schengen travel insurance, other countries don’t make it mandatory. This doesn’t mean that you’re going to be fine without insurance; risks are always present no matter the country. It’s strongly advised that you get travel medical insurance every time you go abroad!

• Travel Insurance is Useless as They Always Reject Claims!

  Usually, claims are not accepted because they’re either a part of the exclusions or because there’s been incorrect information provided. Most travel insurance companies in India have a general set of exclusions stating all the scenarios where your claim won’t be covered.

  For example, travel insurance companies reject claims related to pre-existing conditions unless you’ve bought a policy that covers them.

What’s Not Covered by Travel Insurance Plans

Ignoring exclusions or situations that are not covered under a travel insurance plan is one of the biggest reasons for claim rejection. Keeping these travel insurance exclusions in mind before buying any plan will save you from misunderstandings and financial regrets later.

It will also let you decide if you’re okay with the travel insurance quote for a plan you’re going for. Most travel insurance companies in India don’t cover claims due to the following reasons:

• Medical Exclusions

  • If you are travelling abroad against the medical advice of the doctor, then any medical expenses incurred will not be covered by the insurer.
  • Medical expenses for injuries or sickness caused while you were intoxicated or under the influence of alcohol shall not be covered under a travel insurance policy.
  • Treatment costs incurred due to sexually transmitted diseases and mental/nervous disorders are often not covered by many travel insurance companies in India.
  • Claims related to pregnancy or related complications are not covered.
  • Most travel insurance plans in India do not offer reimbursement for expenses due to alternative treatments such as Homoeopathy, Naturopathy, or Ayurveda.
  • Any claims related to cosmetic or plastic surgery are usually not covered by the insurer.
  • Claims due to treatment for self-inflicted injuries, including attempts to suicide or suicide, are not covered by the insurer.
  • Many insurers in India don’t offer coverage for pre-existing issues or diseases under regular travel insurance plans unless an add-on cover has been purchased.

• Baggage Exclusions

  • Your international travel insurance policy will not cover baggage loss if your luggage has been shipped separately or is not accompanied by you.
  • Some policies don't cover cases beyond the specified geographic region.
  • Delay or failure in reporting the lost luggage to the relevant authorities may result in the rejection of your travel insurance claim.

• Journey Exclusions

  • Any claims arising from dependency on intoxicants, such as alcohol or drugs, will not be covered by the insurer.
  • Many insurers don’t cover claims arising from the insured’s participation in adventure sports and other winter sports. For example, mountaineering, bike race, scuba diving, etc.
  • Loss due to involvement in illegal activities, theft, felony, etc., will not be covered.
  • Damage caused during dangerous or hazardous work will not be covered.

• Other Exclusions

  • The insurer will not cover any claims arising because of war-like circumstances, as well as a civil war in the country that you are visiting.
  • All insurers may not always cover claims from terrorist attacks in your destination city or country.
  • The insurer will not cover the expenses incurred during obtaining a duplicate or a new passport upon losing the original abroad if it was left unattended.

• Decoding Travel Insurance Terms

  Here are some simplified terms to understand travel insurance wordings better:

  • Sum Insured - In case of any unfortunate event (for which you are covered), your insurer will give you a certain amount of money. This is also the maximum amount that you will be paid. You are entitled to this amount which is the maximum coverage under your travel insurance plan.
  • Reimbursement - If you’re in an emergency and have no time to wait for your insurer, you can pay the expenses out of your pocket first and later get that money back (reimbursed) from your insurer. You will be compensated for all your costs as per the limits of your travel insurance policy.
  • Single-Trip Insurance Plans - If you’re not a frequent traveller, you’re likelier to have a single-trip insurance plan. This plan provides coverage for only one trip up to the determined date.
  • Multi-Trip Insurance Plans - These are made for people who travel frequently. Multi-trip insurance plans cover all the trips under the predetermined period (usually 1 year) and don’t need to be purchased every time.
  • Family Travel Insurance Plans - As the name says, family travel insurance are plan designed for families. This can usually be bought for the insured’s spouse, dependent children, and often older parents.
  • Sub-limits - These are additional limitations under any coverage offered by your travel insurance plan. Sub-limits apply to some insurable losses; exceeding them will require you to pay the difference. For example, hospital room rent, ambulance charges, etc., have a fixed limit, exceeding which you must pay an additional amount.
  • Deductible - In some cases, you must pay some of the initial expenses in case of an insured emergency. This will be paid out of your pocket and will not be reimbursed. This amount is known as the deductible for that cover. Your insurer will reimburse the remaining expenses.
  • Cashless Settlement - The insurer directly settles your medical/hospitalisation expenses when you visit their network hospital.
  • Common Carrier - Any organisation, such as a commercial airline, deals with people and cargo travel between different cities or countries.
  • Condition Precedent - A predetermined condition based on which the insurer agrees to offer coverage to the insured.
  • Equipment Failure - An unexpected breakdown or malfunction of the common carrier’s equipment resulting in an interruption or delay of the scheduled trip of the insured.
  • Grace Period - This feature is only available in multi-trip or group plans. An extended period, right after the due date of the insurance premium. The insured person can still pay this due premium in this window to continue enjoying the protection of the travel insurance plan without any interruption.
  • Hospitalisation - When the insured person needs to be admitted into a hospital, medical facility, or for the mentioned minimum duration to receive medical care. The time must exceed 24 hours.
  • Immediate Family Member - Refers to the legal relatives of the policyholder. Includes the insured’s legal relations, including their parents, spouse’s parents, spouse, legal children, siblings, siblings-in-law, legal guardian, etc., who are residing in India.
  • Insured Journey - Refers to the duration of the valid policy term for which it has been purchased. Most insurers calculate it as the time between the insured boards the common carrier for their scheduled journey and the moment they return their home or on the day their plan expires, depending on whichever is sooner.
  • Insured Person - The policyholder is the individual who has purchased the travel insurance plan. Must be a permanent resident or citizen of India.
  • Land/Sea Arrangements - Includes travel arrangements paid for in advance and made for the insured’s scheduled trip. These are planned by a travel agent or other tour operating organisation for which the travel insurance plan has been bought.
  • Medical Expenses - Means the expenses incurred by the insured person due to a sudden illness or injury. These must be required medical treatment based on the advice of a qualified doctor or medical practitioner.
  • Medically Necessary - All tests, treatments, or hospitalisation necessary for the insured’s medical condition. The process involves medical care and management of the insured’s injury/illness based on the advice of a medical practitioner.
  • Notification of Claim - A necessary step on the part of the insured in case they need to raise a claim. The individual can inform their insurer about the claim to be raised.
  • Pre-Existing Condition - Refers to any injury, disease, or other related condition the insured has been diagnosed with or has experienced symptoms of. If the insured has received medical treatment for the condition, they should inform the insurance company.
  • Room Rent - In the case of hospitalisation, the daily cost an individual must pay to occupy their hospital bed. The hospital or medical facility charges fix this room rent.
  • Serious Injury/Sickness - A situation when an injury or sickness becomes a threat to the insured. It must be declared by a qualified physician stating that it is harmful to the insured’s life.
  • Subrogation - This happens when the insurer takes legal measures against a third party on behalf of the insured in cases where the third party has caused loss or injury to the insured person.
  • Travelling Companion - Usually, two other people and the policyholder for the journey have booked travel tickets.

Travel Insurance - FAQs

• Q. Why Do I Need Travel Insurance?

  Ans: While travelling brings joy to most, it also has its share of mishaps. International travel insurance plans protect you from these issues for business or fun.

• Q. Can You Buy Travel Insurance After Starting Your Trip?

  Ans: No, you can’t. Especially if you’re travelling abroad, you must buy international travel insurance before departing from India.

• Q. Does a Travel Insurance Policy Cover Pre-Existing Diseases?

  Ans: Most Indian travel insurance companies don’t cover pre-existing diseases like diabetes and high BP. However, you can always buy an optional to cover these PEDs in case you end up in an emergency while travelling abroad. However, you can buy travel insurance with COVID-19 coverage and pre-existing medical conditions.

• Q. I am an OCI Cardholder (Overseas Citizen of India). Can I buy a travel policy?

  Ans: Yes. OCI Card holders can buy a travel policy, provided they have a valid Indian passport and intend to return to India.

• Q. Can I purchase travel insurance online for someone unrelated to me?

  Ans: No. You can’t buy travel insurance in India on behalf of someone unrelated to you. You can only purchase it for yourself and your parents, spouse, and children.

• Q. Can I file a travel insurance claim once I return to India?

  Ans: Technically, you can file a claim under your international insurance policy after returning to India, provided the claim is registered within 30 days of returning to India or policy expiry, whichever is earlier. However, you should notify your insurer and file your claim immediately.

• Q. What will happen if I forget to carry my travel policy along?

  Ans: Usually, an overseas insurance policy can be quickly issued online, so it is not easy to miss it while travelling. While it’s advisable to carry a soft copy while travelling, you can always get a document through your customer ID and policy number. Just make sure to keep a soft copy with you at all times!

• Q. Can the insurer withdraw a travel insurance India at any point? If so, what are the options available?

  Ans: Yes. Travel insurance companies can withdraw a travel insurance plan if approved by the IRDAI. The traveller will receive a notice about the withdrawal at least 3 months before the expiry of the policy. In case of withdrawal, the insured can continue with their ongoing policy until its expiry date.

• Q. Why should you buy international travel insurance online?

  Ans: Buying overseas travel insurance online saves time and gets you the best travel insurance policy. Since no agents are involved, you can take your time understanding and comparing the available travel insurance plans without paying extra commissions.

• Q. Will my policy offer trip cancellation insurance due to hospitalisation?

  Ans: Yes, you can file a claim for your cancelled trip if it was because of hospitalisation. However, according to most policies, it can only be accepted if you or an immediate family member were hospitalised for the minimum period.

• Q. I have both travel insurance and health insurance, so which one will be applicable during my trip?

  Ans: If you're travelling in India and face emergency medical expenses, your health insurance plan will be applicable depending on the in-patient or out-patient coverage. However, only your travel medical insurance policy will be valid if you are abroad.

• Q. How much will overseas travel insurance online cost me?

  Ans: This will depend on the kind of overseas medical insurance policy you use, as the cost will vary from country to country. Factors like age, trip duration and underlying health condition will determine the final premium. For a better idea, use a travel insurance premium calculator.