It is that time of the year when many of us are planning our annual vacations – a sojourn somewhere in the country or a longer get away at some exotic locale abroad.
While vacations hold the promise of adventure, fun and relaxation, unforeseen occurrences like an accident, illness or emergency can land one in much distress while in a foreign land. While one cannot mitigate the risk of such an event as a theft or a medical emergency, it is possible to minimize the financial burden associated with it. Protecting yourself by buying appropriate travel insurance is therefore a must. Travel insurance plans offer coverage for a variety of risks including loss of passport, loss due to delay of flight or missed connections, loss of valuables, damage to personal property while travelling, medical expenses in case of illness or injury or even delay in or cancellation of a trip.Â
Contrary to popular perceptions, standard medical insurance policies only provide reimbursement for medical exigencies within the home country. To cover health problems while travelling outside India, an international travel insurance policy is necessary. Such plans may cover cashless hospitalisation, medical transportation facility and even expenses for evacuation back to India.
Having seen that travel insurance is not just another paperwork to be hastily completed before embarking on a vacation, let us understand the points to be kept in mind while selecting an apt policy and ensuring that the claim process is smooth as well.
Berkshire India is a majority owned non-direct subsidiary of Berkshire Hathaway incorporated in India. It is a licensed corporate agent of Bajaj Allianz General Insurance. It sells Bajaj Allianz’s products directly to retail consumers through the internet on BerkshireInsurance.com.
Destination and duration: The size of the cover would depend on the destination. The higher the cost of medical treatment in the place you are visiting, the greater should be the sum insured as medical coverage usually constitutes the largest part of the policy. In such cases, premium, too, is correspondingly high. For example, premiums for countries like USA and Canada are generally expensive as medical expenses are high in such countries. Similarly, countries prone to natural disasters too would lead to increased premium cost. Also, a longer trip would mean higher premium.
Frequency of travel: For those who go on multiple trips annually, it may be advisable to opt for annual multi-trip policies as these work out to be cheaper than single-trip policies and also avoid the hassle of repeating the documentation process each time.
Nature of trip: Much depends on whether the trip involves action and adventure or simply sightseeing and relaxation. If one intends to engage in adventure sports like diving, trekking, skiing etc the associated risks can be covered through special plans or through add-ons to the regular policy.
Adequate disclosure: It is important to make accurate disclosure of any health related or other information which may affect a claim – for example a pre-existing medical condition. Failure to do so could lead to claim rejection.
The fine print: Read the terms and conditions thoroughly. Be aware of the excesses (also known as deductibles) on your travel insurance policy. Excesses refer to the amount which one must pay on his own before the insurer provides any coverage.
If the need to make a claim arises, one must be equipped with complete knowledge of the procedure to do so and also have all necessary documents and helpline numbers at hand. Given the time and effort involved in planning a trip, buying travel insurance may seem like another hassle. However, you need not despair.
Nowadays, it is possible to buy a policy conveniently and quickly simply by logging on to the internet. Online portals also offer policies at discounted rates as the distribution cost is reduced. Moreover, there are various aggregator websites on which one can compare features like online services offered, claims process, payment options, network of hospitals etc thereby leading to an informed selection. In this world of smart-phones and tablets, if you end up losing the policy documents with your baggage, you can also easily refer to the digital version of your policy.
In case of a trip extension, you can even renew your policy online, from wherever you are, if the original has been purchased online. Send your worries packing and enjoy your trip with a sensible travel insurance policy this vacation.
(Arun Balakrishnan is the CEO of BerkshireInsurance.com)
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