Those heading for education abroad require suitable insurance to safeguard against financial adversity. Such insurance provides one with various types of protection like medical coverage, cover for loss of baggage/passport, personal liability, study interruption, sponsor protection, compassionate visit etc.
However, to gain maximum benefit out of such a policy one must invest some time and effort in selecting the right plan. Some universities make it compulsory to buy the policy from the university itself. Some state that the policy must be purchased from a company from the host country. In this case, one has limited choice. But, if the university rules permit one to independently select a policy, it makes sense to do one research and buy a good plan from a domestic carrier.
Many students simply buy whatever plan the university offers, since it can be difficult to understand the norms and guidelines for the policy as stipulated by the university. However, this is far costlier than buying a similar plan from an Indian carrier. Indian companies usually charge one third the premium that foreign insurers levy for a comparable policy. Thus for the same coverage benefits, one might have to shell out 20-30% higher premium on policies purchased from the university or from a foreign carrier.
Besides the cost differential, there are other factors one must consider. University plans usually offer only medical coverage. Domestic plans, on the other hand, also include a range of non-medical benefits which are aimed at ensuring that the student`s education does not get interrupted under any circumstance. For instance, sponsor protection cover provides for the fees if the person funding the education can no longer do so due to death or disability. One should take these points into cognizance while choosing a plan.
It is important to check whether the hospital network provided by the insurer includes hospitals in the area where one`s campus is situated. Also check that the deductibles, or the initial amount one has to pay before the insurer settles the claim, are not too high. Foreign companies often charge 5 times (or more) on this account, as compared to Indian insurers.
The most convenient way to get such a policy is to visit an online portal, do a comparative assessment, and buy online.
(Contributed by Arun Balakrishnan, CEO, BerkshireInsurance.com)
http://www.myiris.com/newsCentre/storyShow.php?fileR=20120926155010043&dir=2012/09/26
