Travel Smart: Understanding the Types of Travel Insurance Policies

Travel Insurance comes in handy when faced with unforeseen incidents during your trip.

From enjoying a vacation at a scenic beach to attending important meetings in board rooms, we travel for various reasons. Amid this extensive travels, we can encounter many issues that can not only ruin our trip but also skyrocket our expenses, especially at international tourist destinations. While you may know the many cases – from baggage loss to medical emergencies – in which a travel insurance policy can help, are you aware of the different types of travel insurance policies available? Well, depending on the purpose and duration of your travel, you can get a policy or plan that suits your requirements but doesn’t burn a hole in your pocket.

Tips to buy Travel Insurance

Categories of Travel Insurance

The following are some categories of travel insurance policies —

1. Domestic Travel Insurance: Domestic travel insurance protects you from exigencies during your trip within the country. This is not a mandatory requirement but helps cover unexpected expenses incurred while travelling, such as medical emergencies, missed or cancelled flights, baggage loss, and more.
2. International Travel Insurance: This secures your overseas travel. From medical emergencies, evacuation and repatriation to journey and baggage-related risks, this type of insurance provides financial security against potential mishaps. Some countries make travel insurance mandatory for visa approval.
3. Single-Trip Travel Insurance: A single-trip insurance covers a solitary trip only. The policy comes into effect from the date of travel until you return home or the end of the policy tenure, whichever is earlier. The maximum duration of single-trip insurance is 180 days, and you can travel to multiple destinations in the same trip. Once your journey ends, the policy becomes invalid. This policy is ideal for occasional travellers and those who want to travel to many countries in one trip.
4. Multi-Trip Travel Insurance: Also known as annual travel insurance, this policy provides coverage for one year. You can take numerous trips under the same travel insurance, but there’s a condition – the duration of a single trip cannot exceed a specified number of days, depending on the policy, such as 30, 45, or 60 days. It is perfect for those travelling frequently.
5. Senior Citizen Travel Insurance: This travel insurance is specially meant for people above 60 years of age. Both age and health complications, if any, should not deter the elderly from travelling across the country or internationally. So, senior citizen health insurance caters to the challenges and travel-related emergencies of the elderly so that they can enjoy their trip without any stress.
6. Student Travel Insurance: Exclusively meant for students who travel abroad for higher education, this policy provides financial support while staying alone in a foreign country. In addition to medical emergencies, loss of baggage, and loss of passport, student travel insurance covers tuition fees in case of accidental death of the sponsor, compassionate visit of a family member if the student is hospitalised for more than 7 days, and refund of tuition fees if the education gets interrupted due to a covered reason.
7. Group Travel Insurance: Group travel insurance covers a group of people travelling together to the same destination under a single policy. The policy is cost-effective and beneficial for companies taking their employees out on a business trip, group of friends, or family members.

Inclusions of Travel Insurance

Let’s look at what’s covered under a travel insurance policy.

• Emergency Medical Expenses: Medical emergencies, particularly abroad, can eat up your savings. If you have travel insurance, it will cover the hospitalisation expenses if you meet with an accident, fall sick, or get injured. If the insured requires emergency evacuation and transportation, insurance will cover this cost also.
• Trip Cancellation or Interruption: If circumstances force you to cancel or cut short the trip, travel insurance will reimburse the non-refundable travel expenses. However, the reason for cancellation or interruption must be covered in the policy.
• Loss or Delay in checked-in baggage: If your baggage gets lost, stolen, or arrives late at the destination, you need not worry about the cost of buying essential items because travel insurance will compensate for the loss.
• Flight Delays or Cancellation: Due to reasons beyond your control, if the flight gets delayed or cancelled, travel insurance will reimburse the additional cost of food, accommodation, transport, and more.

Exclusions

• Medical emergencies due to pre-existing ailments are not covered by most insurers.
• Self-inflicted injuries
• If you travel against the advice of your doctor due to any medical condition and fall sick, insurance will not cover the costs.
• Bodily injuries while engaging in unlawful activities like riots.
• Emergencies due to substance abuse.

Conclusion

Travel insurance comes in handy when faced with unforeseen incidents during your trip. With different types of travel insurance policies available, you have the option to select the one that meets the purpose of your travel and makes your trip free from any stress. Always read the policy document carefully to understand the inclusions and exclusions, and to ensure you’re buying the right policy for your family and you.

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