Travelling? Get insured
This holiday season, while you are busy with tickets and reservations, currency conversions and time-tables, do consider one crucial item—travel insurance. Whether you are going away for the weekend or spending a few weeks overseas, accidents can be a costly affair.
There’s insurance for all kinds of travellers. For the frequent traveller, particularly high-flying executives, a “multi-trip” cover is ideal for overseas trips. For students, insurers provide for emergency trips back home and all the basic healthcare insurance requirements.
And even for senior citizens, there are covers to meet their specific requirements. So, pick the cover that suits your profile, duration of stay and the expenses you are likely to incur.
A few firsts
But first, ask yourself: how much travel insurance do I need? The answer lies in the kind of trip you are making and your destination. For a trip to the US or Europe, you will need to load on travel insurance, because of the high medical costs in there. Says Chandan Kumar Sinha, President, Religare Insurance Broking: “Your destination, age and duration of stay should determine the amount of insurance. The longer you stay and the older you are, the more you are likely to require insurance.” Third-party liability is equally important—just in case you happen to injure someone or damage property unintentionally, you could get sued for huge amounts.
Also, ask insurers whether they offer a network of hospitals for overseas trips, and how to facilitate a claim in case of an emergency. ICICI Lombard, for instance, has tied up with United Healthcare’s network of hospitals overseas and offers a card to overseas travellers that ensures access to these facilities.Indian holidays Policies for travel within the country are cheap. Insurer: Bajaj Allianz General Insurer:ICICI Lombard (Domestic Travel for Air Deccan Passengers)* Insurer: Tata AIG * ICICI Lombard offers customised policies for domestic travellers. |
All travel policies cover baggage loss. But check up on compensation in cases of lost passports, or whether there’s a distress allowance in case of hijacking, or hospital cash benefits, and other expenses due to a delay. Among others, insurers provide personal accident and disability covers. Also, read the fine print for special situations, such as medical evacuation emergencies.
The policy features
You can choose from a host of different policies. Policies can be silver, gold or platinum, depending on the insurer, and the sum assured can range between $50,000 (Rs 21.5 lakh) and $5,00,000 (Rs 2.15 crore). In case of accidental death, there’s a 100 per cent payout, but for other claims, such as baggage loss, the payout rates depend on the type of loss.
Travellers should also study the fine print carefully, as they vary between insurers. For instance, some insurers may not cover hospital stays beyond seven days. There may also be a cap on medicines and doctors’ fees. If your policy has such limitations, it may be worthwhile to check the probable cost of medical expenses at your destination.Overseas holidays  Holiday hot spot: Londons Tower Bridge Insurer: Bajaj Allianz General Insurance Insurer: Cholamandalam MS Insurer: Iffco Tokio Insurer: ICICI Lombard Insurer: Reliance General Insurer: Tata AIG General Getting a deal A two-minute guide to finding your type of holiday insurance.
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When you are holidaying with your family, opt for a floater cover but ensure that it’s adequate. Says Ramesh Chordia, Managing Director, Insuregain.com: “Many families opt for a cumulative $200,000 (Rs 86 lakh) cover thinking that not everyone can fall sick at one time. But in an accident, all members are affected and the cover might not be enough.”
Insurers have begun offering domestic travellers policies akin to those relating to foreign travel. You get accidental death benefits, emergency hospital benefits, and even trip cancellation charges. So, if you are planning a journey, don’t take any chances.
