Most popular Indian travel insurance plans basis

Travel insurance is an important product that all travellers should buy simply because it covers risks to the insured travellers associated with the travel itself like:

• Personal Liability Cover - In case there is a damage caused to a third party, then the insurance company will compensate the legal expenses.
• Trip Cancellation / Interruption Cover - In case the insured falls sick or if there is an accident due to which the insured has to cancel the trip, the uninsured part of the bookings will get reimbursed.
• Personal Accident Cover - Compensation for accidental injuries or death is provided by the insurance company. The policyholder’s nominee will get the financial benefit.
• Repatriation of Remains / Medical Evacuation - The expenses involved in getting the mortal remains of the insured person to the home country will be borne by the insurance company. Similarly expenses for moving the insured to a different location for medical treatment will also be covered
• Loss / Delay in Baggage Cover- If the baggage is lost or delayed the insurance company will pay the sum insured.
• Emergency Financial Assistance - The insurance company offers emergency financial assistance in case the traveller happens to lose his/her funds due to theft.
• Dental Emergencies - The insurance policy will cover dental emergencies in case of an accident, emergency pain relief.
• 24/7 Assistance – The traveller can avail round-the-clock assistance from the Assistance Partner of the insurance company who is abroad. The TPA can be contacted on their toll-free numbers.

Please see the example below of how a travel insurance cover can be useful to the traveller:

• Death or diagnosis of Critical illness of the Insured or following immediate family members-Spouse, Children, Parents, Brother, Sister, Grand Parent, Grand Children, Parent In Law.
• A booked common carrier outside India being delayed for at least 24 hours due to Strike, industrial action, riot, civil commotion, severe weather condition, natural disaster, hijack or mechanical breakdown of public common carrier.
• Serious Damage to Your residence in India arising from fire, flood, earthquakes and riots.

Let’s look at an example:

• Passenger A had booked an International Holiday on 10th February 2019 for travel from 25th May 2019 onwards for 1 month. It is recommended that he book his insurance policy with Trip Cancellation benefit immediately on 10th February 2019. Here’s why…
• The cost of the Airfare was ₹50,000, Hotel ₹15,000 and Tour Package ₹20,000 totalling ₹85,000. As is normally the case in all these bookings, there will be a cancellation clause attached to them.
• Unfortunately Passenger’s A immediate family member was diagnosed with a critical illness and unfortunately passed away in March 2019 due to which Passenger A was forced to cancel his trip.
• Without insurance in place and assuming that the airline, hotel and tour package company had a 50% cancellation clause, then Passenger A would receive a refund of ₹42,500 and forfeit the other 50%. With an insurance policy covering Trip Cancellation in place, he can file a claim with the insurance company for the remaining ₹42, 500 giving the reason for cancelling the travel and the insurer would’ve reimbursed the non refundable expenses.
• Without Insurance in place, Passenger A’s loss would’ve been ₹42,500. With Insurance in place, Passenger A’s loss would’ve been ₹0.

The above example illustrates why the traveller should buy their insurance policy (with a coverage for Trip Cancellation) when they book their tickets/hotels/tour packages.

If for whatever reason the traveller does not purchase their insurance policy immediately, they should definitely buy the same prior to their departure from India. No insurance policy can be purchased once they have left India and their trip has commenced. Also, in the case of Schengen countries where insurance is required for obtaining a visa, the insurance policy will need to be purchased upfront.

There are two aspects to travel insurance. One is the set of benefits/coverages under the plan. Hence the insured must consider the following while deciding on the insurance plan and company – Duration of Travel, Destination of Travel, Age of the Traveller, Coverage required. A younger traveller can opt for a lesser coverage while an older traveller should take a more comprehensive cover with higher benefits . Second and more importantly the insured should consider the Assistance and Claims support available in the foreign location. It is better to partner with an insurance company who has a strong Assistance partner and a large network of hospitals abroad. This will ensure seamless cashless treatment and prompt travel and claims assistance should the need arise.