Does Travel Insurance Provide Financial Emergency Cash?

What is an Emergency Cash Advance?

When it comes to getting help from your insurer, many comprehensive travel insurance plans offer little-known benefits that are actually some of the best features of any trip insurance policy.

An emergency cash advance is a great benefit that offers round-the-clock financial security in a foreign place. This emergency financial assistance is extremely useful when you need cash urgently after incidents like burglary or theft of your money or luggage.

Not just for business travellers, it is extremely useful for people who have come for a vacation and find themselves in a situation with no cash or money for necessary expenses.

Does Travel Insurance Include Financial Losses?

Smart travellers know that there isn’t any downside to buying a travel insurance plan. However, not many people pay attention to what has been offered or not offered.

Pickpocketing, theft and mugging are some of the most common crimes across the world, irrespective of where you travel or what you do. If you fall victim to these, chances are that you will need some kind of monetary help. Most travel insurance companies in India offer coverage for financial losses during your trip so that you can safely navigate any difficulty that is due to a lack of money.

This is very useful because, without necessary personal documents and cash, it will be hard to convert currency or arrange for more cash. In these difficult conditions, your insurer will help you by arranging an emergency cash advance through their network.

When is Emergency Cash Advance Used?

An emergency cash advance can be used if you’ve suffered theft, mugging, luggage loss and other emergencies that leave you without any money.

Like every benefit offered by your policy, there are some conditions to benefit from this feature. These are some things to remember if you buy international travel insurance with emergency cash advance:

• Loss of your travel funds should be reported and claimed immediately during your trip. This facility can't be availed after the trip is over.
• You should inform and report to the police as soon as you learn that you've lost your travel funds.
• A written report or FIR must be obtained within 24 hours of the incident occurring. This will be required during the claim.
• If your traveller's cheques are lost or stolen, you will need to report them to the issuing authorities immediately.
• Financial assistance through travel insurance can't be taken if you're facing money shortage due to shortage, currency fluctuation, errors etc.
• If you don't report the loss of your funds to the concerned authorities within 24 hours, then you can't claim emergency cash advance benefits.

Other general exclusions must be read carefully as they vary from insurer to insurer. This will save you from any misunderstandings or wrong impressions later. It will also let you prepare how to file for a claim if something like this happens while travelling.

How to Prepare for any Financial Emergency?

In the world of organised crimes, pickpocketing and mugging is an extremely universal crime that thrives on unsuspecting tourists. However, there are always a few things to keep in mind if you're ever in such a situation:

• As soon as you notice something is missing or has been lost, report it to the police.
• Make sure to report any missing valuables incidents within 24 hours.
• Block all your cards as soon as you learn that your wallet or cards have been stolen.
• Try tracking your phone or gadgets using the location or GPS features.
• Contact your travel insurance company as soon as you've reported the incident.
• In case of lost baggage or valuables, you may be able to claim partial or total compensation depending on the plan you bought.
• Always keep your receipt safe, especially if they're for necessary items that you may claim compensation for later.

While the sum offered as compensation may be less than the cost of your original item, you will still be able to get something for the lost items. Just make sure to read up on what your policy covers or does not covers.

Over to You,

Especially for your trips abroad, travel insurance is often a mandatory requirement and offers a ton of benefits. However, it is a huge risk if you do go on a trip abroad without the shelter of a comprehensive travel insurance plan with an emergency cash advance feature. Without money, any trip can fall apart. Having a backup that guarantees you financial emergency cash is both useful and irreplaceable.