To travel is to live but to travel without insurance is a fatal risk. Traveling abroad might bring many unforeseen situations that can leave you with an empty pocket. Considering this, overseas or international travel insurance is a decision that you make if you are one of those who like to stay sure and secure at all moments of life and also, one of those who care not just about themselves but about their families too. It protects you from unanticipated medical and non-medical emergencies while you are on your trip, be it business, leisure or adventure.
Travel Trends Today reports almost 4.8 million people traveling from India to abroad each year and 70% of them are choosing to buy an international travel cover. The stats reported by Financial Express is surprising as it indicates that India holds the potential of becoming the largest travel insurance market worldwide in the next decade. The year 2013-2014 witnessed the Indian travel market at Rs. 4,510 crore, which is subject to a growth of 20-25% annually.
An important indication of this growth is the rising awareness of people about the relevance of a travel plan. If you have yet not realized the significance, let's look at those four situations when having overseas travel insurance would prove to be an unparalleled relief.
1. Cancelation or Interruption of Your Trip Travelling involves unplanned expenditure and these expenses are often non-refundable. That's fine if you get to do the whole trip as planned, but what if something comes up that forces you to cancel your trip or return early? In those cases, are you just out of luck and have to eat the costs? In certain cases, if you have a travel policy that deals with Trip Cancelation and Interruption, also known as a TCI, you won't have to.
A TCI doesn't cover all reasons, but it covers the important ones, such as falling sick or injured, a close relative dying, and if one of the businesses through which you buy things like airline tickets or hotel rooms goes out of business. Such situations allow you to get a payout from the insurance company to compensate for the non-refundable prepaid payments you made for the trip.
Be sure that you get your insurance through a third party and not through one of the businesses you are booking flights, cruises, or rooms with. The reason being that if the company goes out of business or files for bankruptcy, you will be out of that money and will likely never get paid from the insurance on it. Instead, find a policy through a third party online to make sure that you will be covered in case this happens. Most of the leaders in the industry offer easy online services to get you covered for a trip overseas. If you have a look at the overseas travel insurance policy from ICICI Lombard, which is available online, you will notice how obtaining an insurance has become convenient beyond imagination due to technology.
2. Loss of Your Bags You've managed to get to your destination, but you can't find your bags anywhere. This is another time when a travel cover is a must have. If you are left hundreds of miles away from home without any of your belongings, you need to be able to replace some of it, if not all, in a timely manner. Some international travel plans also help you, if things inside your bags get damaged through travel.
As you are packing, make a list of all of the valuables and items you put inside your checked bag. While the insurance provider may not reimburse you for everything that was in your bag, it will cover some of it. Bag loss coverage is especially important if you are carrying valuables because in case you lose it, the insurance company would provide you the sum insured for lost bag coverage. The coverage value varies from provider to provider, and the compensation is subject to the evaluation of the items in your bag except in case of theft. If your baggage faces burglary or theft, you are entitled to a fixed compensation for your loss.
Don't the airlines offer some insurance in case bags are lost or damaged? They do, but, the amount is small and nowhere near what the value of the items might be. If you are travelling overseas, a checked bag is only covered for about nine dollars per pound your bag weighs and needless to say, it's not sufficient.
3. Health Insurance and Emergency Medical Evacuation The third most compelling reason for getting your overseas trip covered is to get your health insured. Even if you have health insurance through a marketplace or your employer, you might not be covered under them if you cross country borders. In these cases, it's important to make sure that you are covered in case you need to see a doctor or medical professional for any reason, so that you don't have to pay for it out of your own pocket. In developing countries, many hospitals will treat you without looking at your insurance, but they certainly won't let you leave until you pay them for that treatment; would they?
Even if your health insurance will cover you overseas, what happens if you need to have a medical evacuation to another country for treatment? Most insurance policies do not cover such situations while travel insurance does. This is especially important in developing countries that have hospitals which might not have the right equipment or care for that particular sickness. They will need to send you to the nearest medical facility for a treatment.
Apart from the expenses of your hospitalization, there's cover for compassionate visit that covers the expenses of travelling and lodging of a family member in case of insured person's hospitalization.
4. Accidental Death or Dismemberment Similar to being covered for your health while traveling, you want to make sure you are covered for any injury that you might face due to an accident. Unfortunate events like demise or serious disability are never anticipated but create a huge emotional and financial crisis. While the emotional trauma can never be compensated for, your travel insurance might lower your burden financially by paying a fixed pre-decided amount upon such situations. This amount depends on your cover and riders that you may have.
Buying or not buying insurance for this can be a gamble, but it can definitely pay a significant amount to you or your family should the need arise.
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