Emergency Financial Assistance

Emergency Cash Benefit vs. Emergency Financial Assistance

A lot of customers think that emergency cash benefit and financial emergency assistance are one and the same. Some people even use these terms interchangeably, but both represent different 'modes' of support offered by travel insurance policies.

Here is a breakdown of the key differences between financial emergency assistance and emergency cash benefit:

Things to Remember

You must understand a few nuances related to both these benefits:

• Theft Requirement: You need to provide a FIR or a Police report to get both the benefits.
• Time Limit: Both have a time limit (usually 24 hours) within which you must report the incident causing the loss of funds.
• Transaction Fees: In case of cash assistance or facilitation, your insurer may deduct service charges or wire transfer fees from the total amount delivered to you
• Payout Limitations: You can benefit from an event only once; you can't claim cash benefits or assistance again if you have exhausted your funds for the remainder of your trip.

When Can You Get Emergency Financial Assistance?

No travel insurance company in India offers emergency cash for general spending. Only if you are in a genuine situation which is covered by your policy can this benefit be used. Here are some common scenarios where you can get these benefits:

1. Theft/Robbery of Travel Funds

   A situation where your wallet, purse or travel pouch is stolen. Many international travel insurance policies cover you in the event of burglary, robbery, theft, or dacoity. However, you must be able to prove that the crime occurred.

2. Loss of Baggage

   This happens if your airline loses your checked-in baggage, which contains your cards and backup cash. Some insurers offer cash assistance up to a certain amount, but you can claim it only after providing a Property Irregularity Report or PIR.

3. Loss of Travel Documents

   If your passport or other travel documents are also lost or stolen along with your money abroad, your insurer will help you cover the necessary expenses. The benefit can cover costs for obtaining an emergency travel document and reissuing the passport. Many insurers will also cover transport and emergency accommodation costs because of your change in plans.

What Does Financial Emergency Assistance Not Cover?

To avoid disappointment later, it is important to understand the scenarios where this benefit will not be available:

• Mysterious Disappearance: Situations where you just 'lose' your wallet or purse, such as forgetting it in a taxi or can't remember where you left it. You won't be covered for the loss unless there is an element of theft or force that can prove it.
• Currency Fluctuations: You can't claim cash assistance for money that you lost because of changes in exchange rates.
• Errors or Shortages: 'Short-changing' by a vendor is not covered. Similarly, if you lost cash because of exchange errors at a counter, you won't be covered.
• Unattended Items: If you lost your bag or belongings because you left them unattended in a cafe or unlocked hotel room, it won't be covered. This is classified as negligence, and any benefit may be denied.
• Employee or Family Theft: If the theft or loss is committed by a person travelling with you, then you won't be covered.

How to Claim the Emergency Cash Benefit?

You must follow these steps to raise a claim under the emergency cash benefit/assistance:

Step 1: File a police report immediately. It must state that a theft or robbery occurred.

Step 2: Inform your insurer by contacting the international assistance number listed on your policy.

Step 3: Provide proof of funds that you lost. You can't claim assistance without proving you had those funds. You can use bank statements, currency exchange receipts or ATM withdrawal slips.

Step 4: Your insurer's TPA (Third-party Administrator) will verify the police report and proceed with arranging cash (either as a claim payout or through wire transfer of funds provided by your family back home).