Travel Insurance

Before an individual takes a travel insurance policy, the thumb rule should be to compare various policies and then make the right choice. While comparing, there certain details that a traveller should look out for in a comprehensive plan. These are the sum insured, premium costs, covers offered, optional benefits, etc. A travel insurance plan is offered by any insurer based on the trip type, trip category, location, trip duration and the sum insured. There are a few factors that influence the cost of an all-inclusive travel insurance plan in India. Listed below are some of the key factors which will weigh into the decision making of the customer.

Sum Insured

When a travel plan is chosen, the sum insured is decided based on the geography of travel. Travellers will have to pay higher sums if they avail insurance for countries that have higher medical costs. A higher sum insured is directly proportional to the premium that the customer has to pay, i.e., if the sum insured is higher, then the premium cost will also be higher.

Location of travel

Travel insurance policies availed for countries like Canada and the United States will attract higher premium, when compared to countries in Southeast Asia. This again is due to high medical treatment costs in these countries. An exclusion in most travel insurance policies is Japan, as travel plans are customised exclusively for this island nation. Since Japan is prone to natural disasters like earthquakes, etc., travel insurance policyholders will have to pay higher premiums.

Trip Duration

The duration of any trip plays a major role in determining the premium that a customer has to pay. Longer stays will have higher premium and shorter stays will have lower premium rates. Trip extensions will also require additional premium to be paid by the policyholder.

Covers Offered

The coverage chosen by a travel insurance policyholder also influences the premium. Regardless of the type of travel undertaken, if a customer takes additional covers like burglary insurance and home contents protection, then extra premium has to be paid.

Plan Type

Though not a major factor, the type of plan chosen also contributes to the travel insurance premium amount determination. Different premium amounts will be offered for single-trips, multi-trips, student travel, etc.

Health / Age

Some insurers also look into the age and health condition of the customer before issuing travel insurance policies. Pre-existing medical conditions and high-risk conditions might not be covered by most insurers.

Travel insurance claims can be done in two ways, either as Cashless Claims or as Reimbursement Claims by customers.

Cashless Claims - For making these type of claims during an emergency medical treatment or hospitalisation in any country across the world, customers have to present the travel insurance document to the medical service provider. Cashless service will be provided and the customer also has to then inform the respective insurance company of the claim. The medical bills are settled directly by the insurer with the medical service provider.

Reimbursement Claims - This is the most commonly implemented claims process, where the travel insurance policyholder has to contact the insurance company to initiate the claim. Then according to the claim type, the customer has to furnish all the required documents to the insurance company after arriving in India. The insurer will validate the claim made against the coverage availed by the customer. After the verification process, the claim amount will be settled directly to the policyholder by the insurer. The time taken for travel insurance claims varies from insurer to insurer and also depends on the nature of claim made.

Customers have to submit the following details while registering a travel insurance claim.

• Travel Insurance policy number
• Name of the insured
• Contact Details - Phone Number / Email ID
• Diagnosis Report for Medical Cases
• Name of the country where the loss occurred.
• For accidents - Date / Time needs to be furnished
• Description of the loss

The following documents have to be furnished by the policyholder while making a travel insurance claim. The set of documents vary according to the type of loss reported.

Insurers offer insurance for trip cancellation and curtailment in the form of Cancellation Insurance under a comprehensive travel insurance policy. The costs included under this type of insurance are flight cancellation expenses, meals, accommodation, loss of baggage, etc. Emergency based cancellations are also covered under some policies. Other types of coverage available under cancellation insurance are expenses towards cancellations due to terrorist activities, while travelling to high-risk zones, etc.

Customers who intend to procure a travel insurance policy can conveniently check the premium rates that they will be paying towards a policy using convenient tools called travel insurance premium calculators. With certain inputs the tool will give an estimate of the travel premium that has to be paid by a customer depending on the type of policy availed. Trip details have to be chosen, namely, either as a single-trip or a multi-trip plan. The geography of travel has to be selected. Other information like trip start date and end date, number of days, number of members to be included in the plan and the nature of the plan required have to be furnished. After entering all the required personal details, customers can get premium quotes for the chosen travel insurance plan from the insurer. The buying decision can be made after comparing a few insurance quotes with different insurance companies.

In today’s digital age, every general insurer offers easy online services, if a customer is looking to buy a new travel insurance policy or renew an existing policy. While purchasing a policy online, customers can quickly enter their personal and trip details, get a premium quote, choose the most relevant plan for their travel, take additional coverage and make the premium payment online. Insurers offer various modes of payments using credit cards, debit cards or through net banking. Once the payment has been made by the customer, a new travel insurance policy will be generated in the form of a pdf document. Some insurers might send a welcome kit along with the policy document to the policyholder’s physical address or might email a copy of the policy to the registered id.

Applying for Travel Insurance offline:

Customers can also purchase travel insurance policies via insurance agents or travel agents. Policies can be procured by visiting the nearest branch office of the chosen insurance company. After furnishing the required documents and filling the application form, the insurer will issue a new travel insurance policy to the customer.

Choosing a robust travel insurance plan can be an intimidating exercise. But having one is important for all kinds of overseas travellers, regardless of the destination. A comprehensive travel plan can be procured by keeping a few aspects in mind, while comparing different policies from insurer.

Destination - A traveler’s destination usually determines the size of the coverage required. The sum insured is decided based on the geography and also depending on the cost of medical treatments in that geography.

Duration - While choosing a plan, the customer has to keep the duration in mind. For longer durations the customer will have to pay higher and procure higher sum insured. For shorter stays, travel insurance costs are relatively cheaper.

Type of travel - Depending on the type of travel that will be undertaken by the customer, the corresponding travel policy can be procured. For individuals involved in sporting activities, additional coverage for high risk sports can be taken. Senior citizens can get customised policies covering specific medical conditions and treatments. Students can procure relevant plans catering to their needs, while pursuing higher education abroad.

Compare - As a rule, customers must compare before availing any travel insurance policy. Understanding the covers offered, claims process, online services, customer support, network hospitals, payment options, etc., is important for customers in order to enjoy the full benefits of the policy taken.

1. If the travel policyholder participates in any professional sport, will that be covered under a travel insurance plan?

   No, most travel policies do not cover expenses for participating in professional sports and games.

2. Is it mandatory to buy cancellation insurance while procuring a travel plan?

   This is not mandatory. But if a policyholder has availed this type of cover then he/she will be protected against unprecedented events which might lead to trip cancellations or curtailments.

3. Is age an important factor when it comes to determining the required travel insurance coverage?

   Coverage does not vary according to the age, but insurers offer various plans catering to a particular age group. These plans will offer similar covers for individuals falling within that age group.

4. Is it possible to avail multiple travel insurance policies for one single trip?

   No, only one travel insurance policy will be issued per single trip by the insurance company.

5. Is airline insolvency covered under travel insurance policies in India?

   If an airline declares bankruptcy or goes into insolvency before the scheduled flight of the policyholder, then some travel insurance policies will offer the provision of claiming airline insolvency costs. These are subject to terms and conditions, which vary across different insurers in India.

6. Is there a minimum and maximum period for which I can purchase travel insurance?

   Yes, there is. But the duration of the same varies from one insurance company to another. If you choose to buy travel insurance from Bharati AXA, then the minimum duration for which you can buy the policy is 2 days. The maximum period depends on the travel insurance plan that you have bought. They have been listed as follows -

   Non-schengen travel insurance - minimum duration is 2 days up to 182 days. This can be extended up to 356 days.

   For schengen products – minimum 2 days up to a period of 182 days.

   For annual multi trip plan - The duration for each trip will not exceed 30/45/60 days. As dependant on the policy opted for.

7. Is a medical check-up compulsory to buy a travel insurance?

   Not necessarily, as this depends on the insurance company you have bought the insurance from and their policy. Most companies ask for fitness and medical certificates of your existing medical history before buying the travel insurance policy.

8. If I apply for a travel insurance policy online, how long will it be before I get the policy?

   Online applications of travel insurance are policy are very prompt and quick. You can apply for a policy online and also pay online. It is quick and hassle-free. Though the exact amount of time for the same varies from one insurance company to another, depending on their policies and promptness of service.

   For ICICI Bank the hard copy of the policy takes a maximum of 7 working days and online policy can be bought within 15 minutes. You can take a print out of the same. This is a legal document and is valid for all purposes.

9. What is hand baggage cover?

   This cover comes into effect from the time the policyholder passes through the airport security check counter to the time his/her trip covered is over. In case of loss, he/she is compensated for the loss of his baggage as a whole. The compensation is also on actuals and the declaration of baggage loss by the policyholder. Please note that the overall liability under this cover will be up to the sum specified in the Policy Schedule.

10. If I am staying abroad and the period of stay is extended, then can I renew my existing travel insurance policy? If so, then how?

    Yes, you do have that option especially if you have bought the travel insurance plan with Bajaj Allianz General Insurance. This plan can be renewed online. You have to fill a form 7-10 days before the coverage expires. The company will get an approval regarding the same from the concerned team within a day for the extension of the policy. You can buy the policy for 180 days, in the beginning and later renew it again for another 180 days. If you are a student, you can buy the policy for one year and eventually renew it for another year.

11. What are the charges I need to pay in case I cancel my travel insurance policy?

    If you cancel your travel insurance policy, you do have to pay a charge for that. ICICI Bank charges Rs. 300 as charges towards policy cancellation.

12. Is it possible to get issued more than one policy for a single/same trip?

    As per the policy rules of ICICI Bank travel insurance, an individual can be insured by only a single policy while undertaking their journey or travel.

13. Within a duration of one year how many times can I extend my travel insurance policy?

    ICICI Bank travel insurance gives you the liberty to extend the policy any number of times. But this holds true only if the total duration of the policy is equal to or less than 360 days.

14. If I lose my passport during travel, will my travel insurance plan cover that?

    Yes, most standard travel insurance plans cover loss of passport. The expenses incurred in obtaining a duplicate / temporary passport are covered by the insurer.

15. For how long Is travel insurance valid?

    Travel insurance taken for either overseas travel will usually be valid only:

    Till the end of the duration of the insurance policy. This implies to the duration for which the premium has been paid, or,

    Up to the point of time till the insured individual disembarks after returning to India. Keeping in mind that often, delays can also take place during travels which affect our itinerary thereafter, travel insurance providers also provide customers with the option of extending the duration of their travel insurance policy to accommodate the extension in stay.