Travel insurance is insurance that is intended to cover medical expenses, trip cancellation, lost luggage, flight accident and other losses incurred while traveling, either internationally or domestically.
Travel insurance can usually be arranged at the time of the booking of a trip to cover exactly the duration of that trip, or a "multi-trip" policy can cover an unlimited number of trips within a set time frame. Some policies offer lower and higher medical-expense options; the higher ones are chiefly for countries that have high medical costs.
Travel Insurance offers insurance protection while you travel. Travel Insurance may be called by different names by insurance companies. It is important for you to check and understand whether the policy covers domestic travel or overseas travel or both. Travel Insurance protects you and/or family against travel related accidents, unexpected medical expenditure during travel, losses such as baggage loss, loss of passport etc and interruption or delays in flights or delayed arrival of baggage etc.
You must read and understand what the policy you are considering exactly covers. Do ask you insurer and/or agent or broker questions to clear all your doubts and go through the terms and conditions of the cover thoroughly. Travel Insurance normally offers cover only during a specific period of travel. However, some insurance companies may offer various combinations of protection to cater to the specific needs of customers e.g., there could be a special policy for Corporate Frequent Travellers etc.
Here are some Dos and Don’ts for buying Travel Insurance
1. Plan for your Travel Insurance ahead of time just as you plan for your visa and so on.
2. Take care to fill in the proposal form completely and truthfully after getting the necessary medical tests done and obtaining the medical report as required.
3. Plan for the travel period ahead of time and ensure that your insurance covers the entire period.
4. If you have to extend the period of cover, plan for it before the cover expires and provide the required documents to the insurer.
5. Make sure you have gone through the policy document completely and make a note of the contact details of the agency servicing the claims so that it is handy in the event of an emergency.
6. If you are cutting short your travel period, check your policy to see if you are entitled for a refund.
1. Don’t postpone taking your travel insurance till the last minute.
2. Don’t get pushed into taking a cover only as recommended by your travel agent. Get as much information as possible and exercise your choice.
3. Don’t get tempted to opt for the cheapest cover as it might not meet your needs.