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    Key things to know before buying travel insurance

    Key things to know before buying travel insurance

    Key things to know before buying travel insurance
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    By CNBCTV18.com  IST (Updated)

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    Travel insurance: Those who travel occasionally should go for per-trip plans, which provide insurance coverage for a single trip.

    The insurance policies that cover the risks and losses during travelling are categorised as travel insurance. The objective of this insurance is to cover all the risks and eventualities during the travel. It also includes medical emergencies if any. The travel insurance plans generally cover accidental death during a trip, flight cancellations, accidents during travel and loss of baggage among others. Premium travel insurance packages also cover damage to rented equipment and vehicles.
    A person who opts for a travel insurance plan is provided with 24X7 emergency services like replacing lost passports, cash wire assistance and rebooking of cancelled flights. Major travel insurance plans also cover the losses caused due to trip cancellations or interruptions as well as flight accidents.
    Those who travel occasionally should go for per-trip plans, which provide insurance coverage for a single trip. A standard per-trip policy costs between 4 and 10 percent of the trip’s cost. However, those who plan to undertake numerous trips in a year should buy multi-trip coverage.
    The multi-trip coverage plans come with a cap- the insurance won’t be available if the duration of the trip exceeds 30 days.
    Why do you need travel insurance?
    Coverage against trip delays: Travel insurance covers travellers from suffering losses in case of trip delays (or cancellations) by reimbursing them for prepaid and non-refundable travel expenses. Insurance companies cover trip delays if the traveller is facing any of these conditions -- illness, a death in the family, sudden business conflicts and weather-related issues.
    However, the amount of reimbursement in case of losses due to trip delays could vary as per the insurer. It is also important to remember that trip cancellation or trip delay coverage can be nullified if an individual is travelling to a place that's known to have been affected by a serious weather event or some other turmoil.
    Coverage against lost items: Losses incurred due to lost, stolen, or damaged belongings are covered under travel insurance. While most airlines reimburse travellers if baggage is lost or destroyed because of their error, the amount of reimbursement may be limited. Therefore, a traveller’s insurance provides an additional layer of security.
    Medical purchase: For medical coverage, customers are asked to choose among two options — short-term medical or major medical coverage. While short-term policies cover a traveller when on a journey of five days to one year, major medical coverage is for travellers who are planning to take trips longer than six months. Medical coverage may also help to locate doctors and even assist in obtaining foreign-language services.
    Accidental Death: If an accident injures or kills the traveller or a family member accompanying the traveller, travel insurance companies pay the surviving beneficiaries. However, insurance companies are not liable to compensate if a traveller dies of drug overdose or from sickness.
    Like any other purchase, it is advisable to read the fine print to understand the terms and conditions of the travel insurance completely. In addition to purchasing travel insurance, travellers going abroad are also suggested to register themselves at the National Portal of India -- www.india.gov.in. This way, the nearest embassy or the consulate can contact them in case of an emergency.
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