Over the last decade, Indians have significantly embraced travel insurance, buying more and more of these plans that cover trip disruptions, medical emergencies, delays, and things like lost luggage. Now, even the insurers are stepping up with a wider range of options by offering plans with much more flexibility. As per the industry trends, in the last few years, travel insurance sector has grown consistently at around 10 percent annually.
Some of the key factors driving more and more people to buy travel insurance are global travel disruptions that have relatively become common. Apart from disasters like earthquakes, floods, cyclones and volcano eruptions, wildfires and hurricanes also remain key concern for people planning a trip outside the country.
But while purchasing a travel insurance, you may be doing it wrong if you are just concentrating on a single benefit for each trip. It is important not to scrimp on the quality cover when searching for the best prices. Do always remember that a travel insurance costs only a fraction of your entire holiday itinerary. Moreover, it ensures that you return home only with great memories and experiences, and not any financial burden. To be sure, always read the policy terms carefully before purchasing!
Most of the comprehensive travel insurance policies cover you against the financial loss incurred during natural disasters like floods, earthquakes or even epidemic. While travelling abroad, one may even face an adverse medical condition due to different climatic conditions or even because of food poising. During such circumstances, you can easily avail the best possible medical facilities available at your destination if you are equipped with an adequate travel insurance. In order to avail the services, all you need to do is to inform your insurer about the situation at the earliest. Your insurer will also guide you to reach the best hospital near your location. Many policies even provide assistance such as daily hospitalisation cash allowance and emergency evacuation to the home country.
There are times when even the well-planned trips need to be cancelled and this may be sometimes due to health or family emergencies or some unavoidable situation. Under such circumstances, travel insurance works as an effective tool to cover the risk that you may face for cancelling your trip due to an emergency. However, the reasons for cancellation covered in a policy may vary for various insurers. Your insurer will cover all the loss incurred due to the cancellation of flights and hotel bookings. To avail the service, all you need to do is provide required documents justifying the cancellation or curtailment of your trip.
Loss or Delay of Checked Baggage
Ever wondered the sheer disappointment you could face if your checked-in baggage does not arrive at the baggage belt. No doubt, the airlines these days are getting better in keeping track of your baggage, there is still a possibility that you may lose your baggage or your baggage may get temporarily misplaced while travelling. However, having an adequate travel insurance in place can save you as it reimburses you for the reasonable additional purchases made for the essential items. A travel insurance also reimburses you for the loss or damage of baggage, repair or replacement of lost or damaged item, or the actual cash value whichever is less. However, it is important to note that the reimbursement completely depends on the limits in your travel insurance cover, and the limits may vary different from insurer to the insurer.
With a small incremental cost, your insurance policy would also cover your personal liability. If you, during the course of your trip happen to damage someone else’s property or get involved in an accident where the other person has incurred injuries, you are liable for it. However, personal liability cover deals with the claims made against you and directly makes a payment to the third party. A personal liability cover, therefore, protects you, offering you protection in the long run.
Views expressed in this article are a personal opinion of Tarun Mathur, Chief Business Officer– General Insurance, Policybazaar.com.