Choosing a travel insurance policy while planning for an overseas trip could be quite confusing. There would be different insurers, as well as coverages to choose from – including single trip or annual multi-trip policies.
So, what are these policies and which one should you choose while travelling abroad?
Single trip travel insurance, as the name suggests, will provide coverage for a single trip to a foreign land lasting up to 180 days. Some are also extendable by another 180 days.
So, if you are planning a vacation with your family and loved ones, and are confident that this will be your only overseas trip this year, a single trip coverage would be the best option for you. At a reasonable premium, you can enjoy maximum protection against all possible mishaps under this policy.
Says Sanjiv Bajaj, joint chairman and managing director of Bajaj Capital, “For people taking long trips overseas (over 90 days), a single trip policy is most preferable.”
An annual multi-trip travel insurance policy, as the name suggests, will provide coverage for the entire year for a single premium paid at the start of the policy.
Since the policy is valid for a year, an insured can take as many trips as he/she wants as long as all of these trips are for less than 90 days. While it is comparatively slightly more expensive than a single trip travel insurance policy, the annual coverage is convenient and best for those who are planning multiple overseas trips in a year.
Adds Bajaj: “The annual multi-trip cover, on the other hand, is intended for people who travel overseas more than once a year. However, both of these travel insurance plans cover you for inconveniences that may occur during your travel, such as trip cancellations, flight delays and medical emergencies.”
Both single and annual trip policies provide coverage against medical emergencies, trip cancellation, and baggage and/or passport loss.
Therefore, the primary deciding factor for choosing a policy should be based on the number of trips that you intend to undertake in a year. Second, you should consider the duration of your trips.
A single trip policy begins on the day you leave your home country and ends on the day you return, while an annual travel policy begins on the date selected by the insured and ends after 365 days, regardless of the number of trips.
Also, do note that a single trip costs nearly half as compared to a multi-trip insurance policy which comes as an annual package.
So, a single trip insurance will ideally be the best option for families and individuals who only take a few vacations per year. On the other hand, for those travelling overseas more than once a year, an annual multi-trip travel insurance would be the best option.
