A travel involves a lot of planning in advance. There’s ticket to be booked, accommodation to arranged, and bags to be packed, and so on and so forth. But there’s one thing we usually tend to miss. That’s a travel insurance policy, and the simple reason for it is that we often do not understand its significance.
Hence, it becomes all the more important to ask ourselves whether we really need to buy a travel insurance cover or not.
A travel insurance essentially offers the insured person protection against different risks associated with travel. You can buy one both for domestic and foreign travel.
That said, choosing the right travel insurance is also very important.
“Choosing the right travel insurance plan is essential while planning your trip. While opting for travel insurance, it is critical to understand the coverage provided by a plan. It should also be noted that there are various plans available in terms of the geographies/countries covered, days of travel, whether you are a single traveller or traveling in a group, and the sum insured,” says Sheeraj Deshpande, head - health businesses, SBI General Insurance.
“Therefore, depending on varied factors, you should ensure that the travel plan aligns with your needs. The sum insured under the policy should adequately cover any medical emergency in the destination country you plan to visit, as medical costs vary greatly at different locations. Additionally, with the resurgence of Covid cases, travellers should look for a travel insurance plan that includes coverage against Covid-19,” says Deshpande.
Here are some of the risks that a travel insurance policy covers:
Medical/accident cover: This is for expenses incurred due to any medical emergency or accident during the trip. Travel insurance takes care of such eventualities up to a specified limit. This insurance takes care of both in-patient and out-patient hospitalisation expenses. There are also some policies that provide a daily cash allowance in case you are hospitalised. In case of any emergency, it would also cover the cost of transportation to the nearest town or your hometown. When you are travelling in a foreign country, the medical cost tends to be pretty high. Travel insurance comes handy in such cases. There are also other health risks associated with travel, which are covered by a travel insurance policy.
Flight cancellations and delays: There could arise instances of flight cancellations or delays due to bad weather. You may sometimes even miss a connecting flight. Travel insurance covers your expenses for such occasions. The coverage includes cost of re-scheduling flights, as well as the cost of food and hotel stay for the period of the delay.
Loss of passport: When you are travelling overseas, loss of passport could lead to unnecessary hassles and expenses. Foreign travel insurance usually covers such expenses and saves you from trouble.
Delay or loss of luggage: While travelling overseas, or even within the country, your check-in luggage might get lost or misplaced. Most airlines usually takes care of these. A travel insurance policy will cover the loss of baggage or misplacement, and also provide you with an amount to spend on buying essentials.
Personal liability: In case there’s an accidental damage to a third-party property, you would have to pay for it, your travel insurance would cover for you.
Hotel extension: In case, there’s a crisis situation and you have to extend your travel or your duration of stay, your travel insurance will take care of the cost for the extended stay in such cases.
Considering all these benefits, a travel insurance is indeed an absolute necessity that could well protect you and your family financially while travelling.