Benefits of Travel Insurance and Personal Accident Insurance Policy

What is Travel Insurance?

Travel insurance or international travel insurance is a type of insurance policy designed to cover losses incurred while travelling, either internationally or domestically. Such policies cover medical expenses, trip cancellation, lost luggage, flight accident and other losses. A Travel insurance policy is ideal for people who are on vacation or business travel or have taken a sabbatical from work/home life and have decided to travel abroad or locally for a long period of time.

Travel insurance can be purchased while booking the trip or you can opt for a multi-trip policy which provides cover for an unlimited number of trips within a set time frame. Frequent flyers opt for a multi-trip policy.

What are the key benefits of a Travel Insurance Policy? Read ahead and find out.

Benefits of Travel Insurance

• Hospitalization Expenses - Hospitalization expenses include the cost incurred in case the policyholder availed immediate medical assistance or contracted any illness or injury while on a trip, either internationally or domestically.

• Medical Evacuation - Medical evacuation provides cover for the cost incurred for an ambulance or emergency transportation and evacuation services caused due to injury, accident or illness while on a trip, either internationally or domestically.

• Repatriation of Remains - Repatriation of Remains provides cover for the cost of transporting the remains of the deceased policyholder back to the country of origin/residence up to an pre-decided amount.

• Dental Treatment - This covers the cost of medical expenses incurred due to an injury/illness to the tooth/teeth of the policyholder during the trip.

• Personal Accident - In case a policyholder meets with an accident during the policy period which results in death or permanent total disability, personal accident provides cover for such instances.

• Loss of Checked-In Baggage - There are often times when airlines misplace the luggage of a customer. This is termed as Loss of Checked-In Baggage. This type of coverage commences from the time the Checked-In Baggage is entrusted to the Common Carrier (the airline) and a receipt obtained. It terminates on delivery by the Common Carrier against surrender of the receipt at the Place of Destination/ City of Residence. This cover is applicable only if the entire luggage is permanently lost by the airline. Also, this cover is applicable individually and independently in case of Trip involving multi destinations en-route.

• Checked-In Baggage Delay - Under this feature, the insurer will compensate and provide an allowance for the Delay of Checked-in Baggage in case the delay is for more than 6 Hours (for Geographical scope of cover within India)/12 Hours (for Geographical scope of cover outside India) or as per the number of hours as stated in the policy. The delay is considered to be the time lapsed from the actual time of arrival of the Common Carrier (the airline) and the receipt of the Checked-In Baggage by the Insured. In case of a multi destinations en-route, the insurer’s liability will be limited to loss suffered for two such incidents of delay of Checked-In Baggage.

• Trip Delay - In case a particular trip is delayed for more than 8 hours due to terrorism, cancellation or rescheduling of flights by Common Carrier, or any natural peril, reimbursement of additional expenses is provided.

• Missed Flight Connection - In case of failure of the policyholder to access the connecting flight arising out of and consequent upon the delayed arrival of the earlier flight caused by reasons beyond the control of the insured, reimbursement of additional expenses is provided.

• Loss of Passport - In case the passport belonging to the policyholder is lost during the trip, the insurer will reimburse the policyholder for expenses incurred in connection with obtaining a duplicate or fresh passport.

• Trip Cancellation and Interruption - This provides cover for cancellation charges/transportation expenses incurred by the insured to the return to the place of origin or for the trip being cancelled due to natural perils, or death or emergency hospitalization of insured or insured’s immediate family member.

• Personal Liability - This feature provides cover against legal liability for bodily injury or property damage to third parties on account of an accident occurring within the trip and during policy period.

• Financial Emergency Allowance- In case of a financial emergency as a result of accidental loss of money held by the policyholder during the trip, the insurer will pay a sum as a fixed allowance as mentioned in the policy.

• Hijack Distress Allowance - This feature provides compensation in case the airline in which the insured is travelling as a passenger is subjected to a hijack and the airline, with all the passengers are held captive by the hijackers.

• Compassionate Visit - Under this feature, expenses incurred for special assistance rendered by an immediate family member of the policyholder, in case the policyholder is hospitalized for more than 5 days due to any injury sustained/illness contracted during the trip are covered.

Exclusions under Travel Insurance

The exclusions under travel insurance are:

• Certain medical conditions such as diabetes, HIV/AIDS/STDs, high blood pressure and many others

• Baggage delays amounting to less than 24 hours

• Hostility by military or terrorist activities

• Loss instigated by the policyholder

• Irresponsibly losing your belongings

• Claim against an unapproved health condition

• High risk/extreme sports/adventure activities not covered in the policy.

• Illness/death of a pet

• Cancellation by tour operator

• Psychological/mental illness

• Separation by either spouse as a reason

• Local protests

• Nuclear radiation/contamination by radioactive elements/natural calamities

• Medical tourism

• Losses caused due to intoxicated behaviour/under the influence of drugs/alcohol

Personal Accident Insurance Policy

Personal accident insurance is a policy cover that provides reimbursement of your medical costs or compensation in case of disability or death caused by accidents. It covers the following:

• Accidental Death - In case of death of the policyholder in an accident, the nominee will get accidental death compensation. The sum assured amount can vary from Rs. 5 lakh to Rs. 1 crore.

• *Permanent Disability** - Certain accidents can leave life-long permanent disability. Depending on the nature of disability, the insurer pays a certain amount. Permanent disability includes loss of speech, loss of vision in both eyes, and hearing loss in both ears. Permanent partial disability includes loss of hearing in one year or loss of eyesight in one eye, loss of an index finger, a thumb or a hand.

• *Transportation Benefit** - In case an insured person is hospitalized in a remote location, the immediate family member will incur transportation expenses. The insurer will reimburse the cost of transportation up to Rs. 50,000 or more.

• Additional Benefits - Education and employment benefits, funeral charges, etc. are all covered under additional benefits. In short, it is advisable to purchase a travel insurance plan along with personal accident cover as a rider add-on.

Recommended Link: Do you need a Personal Accident Policy?