10 important tips for taking Travel Insurance ✈✈✈

Introduction: 👇👇

Travel insurance, (for those who are not aware of it), is a form of coverage designed to protect travelers against any unforeseen risks and expenses while they are away from home. It typically provides financial protection for various travel-related issues, such as medical emergencies, trip cancellations, lost baggage, flight delays, and personal liability. By purchasing travel insurance, travelers can enjoy peace of mind during their journeys, knowing that they are safeguarded against potential financial hardships that may arise during their trips.  Who knows what type of problem you may face during your journey.

Often travelers are confused and have varied perceptions about Travel Insurance, what it covers, and how much is required.   In this article, we will go through some important tips before taking any travel Insurance.

There are several prerequisites and considerations to keep in mind before taking any travel insurance, to ensure you get the most appropriate coverage for your trip. We have compiled 10 important tips for purchasing travel insurance. Here are the key pre-requisites:

1. Know your Trip Details: 

The most important aspect is to know all the specific details of your trip, including the departure airport, hoping or the transit airport, destination airport, departure time, arrival time, travel dates, and duration of travel, whether you are traveling alone or with your family or groups, traveling domestic or international, is it single or multiple trips, etc. Some policies may have restrictions based on the location or length of your journey.  For example, the single trip Insurance covers from the date of your departure till the date of your arrival only.  Whereas Multiple trip Insurance normally has a validity period of 1 year that covers multiple trips within a particular period of 1 year. 

So if you plan to go for multiple trips e.g. traveling often relating to your business, it is better to take multiple trip Insurance that will be cost effective.  Similarly, you should be familiar with individual and group travel insurance.   Individual travel insurance is for those who are either traveling alone or with their family and friends and it covers the name of the policyholder and members who are accompanying him.  Ensure to check all the members' names are listed in the policy.

The second type of Insurance is group travel insurance which is normally taken by the companies, whose employees travel on frequent occasions.  Every employee who travels will be covered by this group's travel insurance. 

The third type of travel insurance is Student travel insurance, wherein students who study abroad are required to take travel insurance which is mandatory, especially post-pandemic.  This type of travel insurance not only covers the medical expenses of the student but also reimburses all his paid tuition fees if the student's education is disrupted for genuine reasons.        

2. Know your Coverage :

Travel insurance coverage varies depending on the specific policy and insurance provider and the type of coverage that you choose from. While a comprehensive insurance policy covers every aspect of your travel, the basic plan has limited coverage only. However, some common things are typically covered under travel insurance as follows:-

Trip Cancellation or Interruption: Reimbursement for non-refundable trip expenses if the trip is canceled or cut short due to covered reasons, such as illness, injury, or unforeseen events / natural calamities. Also if you miss your flight due to some unforeseen circumstances, local law and order situation, then also you get covered by the cost of booking the new flight.   Many travelers are not aware of this aspect.

Emergency Medical Expenses: Coverage for medical treatment and hospitalization costs in case of sudden illness or injury while traveling, including daily hospital cash allowance. 

Medical Evacuation: Financial assistance for emergency medical transportation to the nearest suitable medical facility or back home in case of critical situations.

Lost, Stolen, or Delayed Baggage: Reimbursement for essential items and clothing if baggage is lost, stolen, or delayed during the trip.  However, interchanged luggage is not covered.

Loss of Passport: A passport is an important document and it will be torture if you have lost your passport or stolen, or mutilated.  Getting a new passport will not only be tiresome but also takes considerable time.  Most of the travel insurance policy covers this aspect as they arrange for getting a new passport along with any other lost documents like International Driving License which is another important document. 

Travel Delay: Compensation for additional expenses due to extended travel delays caused by covered reasons like bad weather or mechanical/technical snag issues.

Trip Curtailment: Coverage for additional expenses incurred if a trip needs to be cut short due to unforeseen reasons.

Personal Liability: Protection against legal liabilities for third-party bodily injury or property damage caused by the insured traveler.

Rental Car Coverage: Coverage for damages to or theft of rental cars during the trip.

Emergency Assistance Services: Access to 24/7 emergency assistance services, including medical consultations, travel advice, and coordination of help during emergencies.

Accidental Death and Dismemberment: Financial compensation to beneficiaries in the event of accidental death or loss of limb(s) during the trip.

Traveling is an exhilarating experience, but it's essential to safeguard your journey against unforeseen circumstances. That's where travel insurance comes into the picture.   

3. Assess your travel needs :

Consider the destination that you are going to visit, the duration of your travel, and the purpose of your trip. For example, if you are planning to visit Maldives or Dubai from India, which is not very far away and here the cost of airfare will not be more, and hence your travel insurance premium will not be high.  Else if your destination is the United States of America from India, then your cost of the ticket will be more and obviously your travel insurance premium will also be more. The more the cost of travel, the more will be the premium.

Consider for example if you are simply going to attend a convocation of your Sons graduation ceremony, then you can opt for the basic coverage plan because your purpose of travel is to attend the convocation and also to visit some interesting places and return back to your home country.  In this case, you don’t need any comprehensive travel insurance plan.   On the other hand, If you are participating in adventurous activities or have any pre-existing medical conditions or diseases, you'll need coverage that caters not only to travel requirements but also to cover your medical emergency conditions.  In this case, you must take a comprehensive travel insurance policy covering everything related to your travel and health. 

There might be a case where you are required to take your parents who are aged more than 60 years, in this case also you will need to take a comprehensive travel insurance policy. 

4. Know your Trip cost :

Determine the total cost of your trip, including flights to and fro flight cost for the total number of passengers accompanying you, accommodation cost, the hotel cost for all the days that you are traveling abroad, cab, bus, or any other mode of transport and any pre-booked activities or prebooked tickets for picking you up at the airport and dropping.

This information is necessary to select adequate coverage for trip cancellation and interruption. Some travel insurance policy offers coverage based on your total trip cost.  If you have a more expensive itinerary with more days stay then your insurance premium will also be higher to provide adequate protection for your invested amount.   For example, consider a journey from India to the United States or the United Kingdom, the travel cost is very high, as the duration of flight is also very high.  Accordingly, the Insurance premium will also be higher to cover the cost of travel.

5. Know your Budget :

Determine how much you are willing to spend on travel insurance. Strike a balance between comprehensive coverage and affordability.  If are going on a yearly vacation with a family of 4 or 5 and planning to stay with your relative or friend place in the destination country, then you just need to have a basic plan that covers the travel cost. Also, examine the current health condition of all the travelers who are traveling with you and even if any one of the travelers has any pre-existing ailments or medical problems, then you will need to take a comprehensive travel insurance policy that covers everything apart from travel.   If you have a good budget and going for fun activity then you can be taken up the comprehensive travel insurance plan and be relaxed during the entire duration of your journey. 

Else if you are going on budget travel, go in for the basic plan that covers everything related to your air travel and transportation, including accidental death coverage. 

As far as possible provide accurate information about your health and any pre-existing medical conditions, because some policies may have age limits or exclusions for certain medical conditions. You cannot afford to take risks by not covering a certain type of medical assistance that you may require during your travel.  So carefully  assess and plan your budget based on your requirement and the necessity to travel.  

6. Know your existing Coverage:

Check if you already have any travel insurance through your credit cards, employer engagement benefits, or other existing policies.  For example, most credit cards and international cards provide travel insurance coverage, and understanding your existing coverage will help you avoid redundant purchases. If you have any of your existing travel insurance policy coverage, then you need coverage only for the medical aspect or medical emergency expenses part. In this case, you can take a selective travel insurance policy to cover up your medical emergency expenses.   You can tailor the policy according to your needs.  In other words, you need to assess the areas where you will need assistance and then include only those portions to be applicable in the travel insurance. This will not only curtail your travel insurance premium cost but also avoid taking duplicate insurance.  It does not make sense in taking a comprehensive travel insurance policy if you already have your travel insurance coverage on your International Credit card.

7. Know about Deductibles and Excess:

Deductibles and excess are terms commonly used in medical insurance to describe the portion of the medical expenses that the insured individual is responsible for paying out of pocket before the insurance coverage kicks in. Both deductibles and excess serve as cost-sharing mechanisms between the insurer and the insured. A deductible is the amount you must pay before the insurance coverage kicks in, whereas excess is the portion you'll have to cover in case of a claim.

Deductibles:

A deductible is the fixed amount of money that the policyholder must pay towards covered medical expenses before the insurance company starts contributing to the cost. For example, if your medical insurance policy has a deductible of $500 and you incur medical expenses totaling $2,000, you will have to pay the first $500, and the insurance company will cover the remaining $1,500, subject to any applicable copayments or coinsurance.

Deductibles typically apply to certain types of medical services or treatments, and they may vary depending on the insurance plan. Some plans have separate deductibles for specific services, such as hospitalization, prescription drugs, or specialist visits. It's important to note that certain preventive services, like annual check-ups or vaccinations, may be exempt from deductibles and covered fully by the insurance without any out-of-pocket cost to the insured.

Excess (or Excess Amount):

Excess, also known as the "excess amount" or "policy excess," is a similar concept to deductibles but is commonly associated with travel insurance and some other insurance types. Instead of being a fixed amount, the excess is the agreed-upon amount that the policyholder must contribute towards a claim. It is usually expressed as a specific sum, such as $100 or $200.

For example, if you have a travel insurance policy with an excess of $100, and you make a claim for medical expenses worth $500, the insurance company will reimburse you $400 ($500 - $100).

It's essential to review the terms and conditions of your medical insurance or travel insurance policy to understand the specific deductibles and excess amounts applicable to your coverage. These cost-sharing measures are designed to encourage the responsible use of insurance and can affect the overall cost of your insurance premiums.

8. Compare Plans:

Research Reputable Travel Insurance Providers. Look for well-established insurance companies with a good track record of handling travel insurance claims and providing reliable customer service. To name a few, ICICI Lombard, HDFC ERGO Travel Insurance, Tata AIG General Insurance Co. Ltd, Religare Health Insurance Co. Ltd. (Now Care Health Insurance, Bajaj Allianz General Insurance Co. Ltd. These are some private players apart from other Government players like SBI General Insurance Co. Ltd. And Oriental Insurance Company Ltd. Etc.

Do not engage with agents or mediators who have less experience and who promise to provide travel insurance with a very low-cost premium.  

Request quotes from multiple insurance providers for the same trip details and coverage requirements. Make sure to provide accurate information to get precise quotes. Review the coverage inclusions, exclusions, limits, and deductibles of each policy. Ensure that the plans provide the necessary coverage for your travel needs.

Check for Additional Benefits or add-ons or value-added benefits  offered by each plan, such as emergency assistance services, travel concierge, or coverage for adventure sport, etc.  Look for the Customization Options in all the quotes, as you might need to customize your insurance requirements based on your need.   Some insurance plans may offer customization options, allowing you to tailor coverage to better suit your individual needs while some others offer fixed benefits that may not suit your need. 

9. Read Reviews:

As in any other purchase, research customer reviews and ratings of the insurance providers you're considering to gauge their customer service and claims handling efficiency. Figure out the claim settlement ratio being done by the Insurance provider.  This will give you an idea of their efficiency in settling claim

Look for reviews and testimonials from other travelers who have used the insurance plans you are considering. Pay attention to feedback about claim experiences, claim settlement, difficulties if any, or value-added services that the service provider is giving as regards the overall customer service. 

By considering these prerequisites and thoroughly researching different travel insurance options, you can make an informed decision and choose the most suitable coverage for your travel needs, ensuring a stress-free and protected journey. Shortlist at least 3 service providers to suit your needs and then choose the final service provider who provides the most cost-effective, yet providing tailor-made coverage that is exactly matching your requirement.

10 Get familiarised with your policy :

Many travelers take travel insurance but are not aware or familiar with the policy details, its coverage, etc. After finalizing your travel insurance, there are several important steps to take to ensure that you have all the necessary information and documentation ready for your trip. Here are some essential things to do:

Review the Policy: Read through the travel insurance policy document thoroughly to understand the coverage details, inclusions, exclusions, and claim procedures, and check if the contact information of the insurance provider is entered correctly without any mistakes. 

Carry Policy Documents: Print a copy of the policy document and keep it with you during your trip. Additionally, save an electronic copy on your phone or other devices for easy access.

Inform Travel Companions: If you're traveling with others, ensure that they are aware of the travel insurance coverage and have the necessary policy information in case of emergencies.

Save Emergency Contact Numbers: Keep the emergency contact numbers of the insurance provider and the 24/7 assistance service in your phone and write them down in case you lose your phone.

Inform Close Contacts: Share the details of your travel insurance with a trusted family member or friend who is not traveling with you. They can help facilitate communication with the insurance company if needed.

Inform Healthcare Providers: If you have any pre-existing medical conditions, consider informing your healthcare providers about your travel plans and the coverage provided by your travel insurance. This is very important to make a claim while on your travel.

Keep Important Documents Safe: Place all your important travel documents, including your passport, visa, and travel insurance policy, in a secure and easily accessible location.

Note Coverage Limits and Claim Procedures: Be aware of the coverage limits and maximum benefit amounts for each type of coverage provided by your travel insurance. Know the Claims Process: Familiarize yourself with the steps involved in filing a claim. Take note of any documentation or proof required to support your claim.

Carry Proof of Insurance: Some countries or travel destinations may require proof of travel insurance to enter or obtain a visa. Carry a copy of your insurance certificate as proof when necessary.

Understand Medical Facilities: If your travel insurance includes medical coverage, research the medical facilities available at your destination and their acceptance of international insurance.

Keep Receipts and Documentation: Keep all receipts and documentation related to your trip expenses, medical treatments, and any potential claims.

By taking these steps, you can ensure that you are well-prepared and have the necessary information to use your travel insurance effectively in case of any unforeseen events during your journey.

Conclusion:

Securing travel insurance is an integral part of responsible travel planning. By following these ten essential tips, you can make an informed decision and protect yourself from potential financial burdens and stress during your journeys. Remember to start early, compare policies, and tailor coverage to suit your specific needs. With the right travel insurance in hand, you can embark on your adventures with confidence and peace of mind.  Hope these travel Insurance tips would have been a great help to you. Don’t forget to disseminate this information to your family and friends who need travel insurance. 

Some FAQs

Q1: What does travel insurance typically cover?

A1: Travel insurance typically covers medical expenses for sudden illnesses or injuries during the trip, trip cancellation or interruption due to covered reasons, lost or delayed baggage, travel delays, emergency medical evacuation, and personal liability. Some policies may also include coverage for adventure sports, rental car protection, and additional benefits like concierge services.

Q2: How can travelers select the right travel insurance plan?

A2: To select the right travel insurance plan, travelers should assess their specific needs, destination, and planned activities. They should compare policies from reputable providers, read the fine print to understand coverage details and exclusions, check for coverage of pre-existing medical conditions, and evaluate the cost and benefits of each plan.

Q3: Are pre-existing medical conditions covered under travel insurance?

A3: Some travel insurance policies offer coverage for pre-existing medical conditions, while others may exclude them. Travelers need to declare any pre-existing conditions truthfully during the application process and check if the policy provides coverage or allows for medical waivers.

Q4: Can travel insurance be purchased for a single trip or multiple trips?

A4: Travel insurance is available for both single trips and multiple trips. Single-trip policies provide coverage for a specific journey, while annual or multi-trip policies offer coverage for multiple trips taken within a year.

Q5: What are deductibles and excess in travel insurance?

A5: Deductibles and excess are cost-sharing mechanisms in travel insurance. The deductible is the fixed amount that the insured must pay before the insurance coverage begins. Excess, on the other hand, is the agreed-upon amount that the policyholder must contribute towards a claim. Both help to reduce insurance premiums and encourage the responsible use of insurance.

Q6: Can travel insurance be extended if the trip is extended?

A6: Some travel insurance policies may allow extensions if the trip is extended due to unforeseen circumstances. Travelers should check with their insurance provider about extensions and any additional costs associated with prolonging the coverage.

Q7: Is travel insurance mandatory for international travel?

A7: Travel insurance is not always mandatory for international travel, but it is highly recommended. Some countries may require proof of travel insurance for visa purposes, and having coverage can be beneficial in case of emergencies or unexpected events during the trip.

Q8: How can travelers file a claim with their travel insurance provider?

A8: To file a claim with their travel insurance provider, travelers should contact the insurer's claims department and follow the claim procedures outlined in their policy. They may need to provide supporting documentation, such as receipts, medical reports, and incident reports, depending on the nature of the claim.

Q9: Can travel insurance be canceled and refunded if the trip is canceled?

A9: Many travel insurance policies offer a "free-look period" during which travelers can cancel their policy and receive a full refund if they change their mind within a specified period after purchase. However, once the free-look period is over, cancellation and refund policies may vary among insurance providers, and travelers should check the terms and conditions of their policy for details.