Travel insurance is one of the most important things that travellers should know. It provides protection against any uncertainties and provides protection to your travel finance. In many countries it is compulsory to have travel insurance while you travel and while applying for a visa. The most important thing is to choose the right kind of insurance which provides coverage and protection.   

What is Travel Insurance?

It is an insurance that provides protection during travelling. The coverage includes medical expenses, flight cancellations expenses, lost baggage and various other losses related to the travel and that happen during travel. The insurance starts from the day the traveller starts the journey and returns back home after the journey. Travel insurance involves comprehensive coverage when you are travelling in another country. It is also provided for travelling within the country and is most famous for travelling abroad.  

Risk coverage 

Travel insurance provides risk coverage against the following. 

  • Personal accident coverage including death and permanent total disability
  • Sickness medical reimbursement expenses
  • Accidental coverage
  • Emergency evacuation
  • Dental treatments
  • Baggage delay, loss of baggage
  • In case of death repatriation of remains
  • Flight delays
  • Loss of passport
  • Cancellation of trip 
  • Curtailment of trip
  • Missed airline booking 
  • Missed connection or missed departure
  • Bounced hotel booking

The risk coverage listed above is provided by the insurance companies. They are not limited to these; a policyholder can ask for any other risk coverage. Depending on the nature of travel and the requirements of the traveller, insurance coverage can be extended. The risks coverage and protection is provided according to the policy. For any additional risk coverage, an extra premium is levied by the insurance company. Travel Risk is also associated with the travel place and the traveller age, health and other conditions as well. Based on all these factors, policy and premium amounts are decided by the insurance company.

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Reasons for buying Travel insurance

  • Coverage of Medical Expenses
  • Medical Evacuation
  • During Medical emergencies cashless treatments
  • Coverage of legal requirements
  • Coverage on delay in trips

Benefits of Travel Insurance

Travel insurance may look like an unnecessary expense while you are planning for a trip. You will not think about it as you are celebrating your holiday travelling to your destiny. Travel insurance will protect you against any disasters during the travel like medical emergencies or cancellation or lost possession. These events can happen any time whether you are travelling for a long weekend or for a world tour for a couple of years. It is recommended to have travel insurance when you are departing for the travel trip. To help you understand the importance and benefits of travel insurance we have listed the following.

  1. Cancellation
  2. Medical benefits
  3. Safety to Personal possession 
  4. Coverage on activities
  5. Legal advice
  6. Accident coverage

1.Cancellation

When you are buying a single policy and after paying the premium this section starts to cover you. From the day you start your policy and if you have chosen multiple trip policies, cancellation benefits will provide you with the coverage. 

Cancellation benefit provides coverage on prepaid costs like accommodation, car hiring transportation and other expenses. These expenses cannot be recovered from the tour operator in the event of cancellation of the trip. 

Cancellation coverage includes various reasons it is different from one insurance provider to the other.  It is important to read the policy document and the clauses mentioned in the agreement.

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2. Medical Benefits 

Medical benefits provide coverage on illness or injury during the travel. When you are travelling abroad and if you need any medical help, it would be difficult to communicate with doctors. In this situation, the policy coverage can help you as it provides you with emergency medical assistance. 

The cost of medical expenses is included in the policy. Some insurance providers also have contacts with hospitals and the medical staff can immediately come to your rescue. 24 hrs helpline services are also available to provide services to the travellers during an emergency. 

3. Safety to Personal Possession 

This is the most common coverage in travel insurance. The coverage includes delayed baggage, damages to gadgets, travel documents, loss of passport and other possessions. The policy can cover the expenses but you have to ensure your policy limits to cover the items that you’re carrying with you while travelling. 

Some insurance providers do not cover gadgets in their policy. If you want to include gadget coverage, check with the policy provider as an add on service it will be provided to you. 

4. Coverage on activities 

As part of your travel, if you are participating in any activities like Skydiving, jet skiing, bungee jumping and other activities. When participating in these activities if you are injured you will incur expensive bills. 

Insurance providers cover standard activities in their policy. You can check your activities on the list from the service provider. If any activity is not listed you can add the activity and process your payment.

5. Legal Advice

In relation to your trip if you need any legal advice or file any legal claim in relation to your travel this benefit can provide you relief. The policies section has a team of members dedicated to providing the services. Please check the policy documents for more information.

6. Accident Coverage 

It is not a good topic to discuss while you’re planning for the trip but it is very important that your travel insurance includes personal accident coverage. The coverage generally includes accidental death and disability. During the travel trip if the traveller dies or meets with an accident with a permanent disability the coverage provides relief to the policyholder.

Conclusion

The benefits of travel insurance are designed especially for frequent travellers, students, senior citizens and travel enthusiasts. It provides medical coverage when you are travelling abroad, trip cancellation and reimbursements, loss of luggage documentation, personal accidental coverage and many other benefits. Travel insurance provides peace of mind, safety and ensures safe travel. 

Meet the author
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Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.

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Vinay Kumar
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.

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