Post-COVID-19, more and more travelers are taking travel insurance seriously. An increasing number of domestic and international travelers are buying travel insurance to cover the risk of unfavorable and unexpected events on a vacation or a business trip. Based on recent research, an increase of 215% in the purchase of single-trip policies was observed in FY 2021–22 from FY 2020–21. The research also mentions that trip cancellations, flight cancellations, and flight delays are the most common reasons for a claim.
Let us understand the meaning and importance of travel insurance in detail.
What is Travel Insurance?
In simple words, travel insurance is a type of insurance that covers expenses and risks against a variety of dangers connected with travel. It protects a traveler from damages that may occur during travel, including medical costs, lost luggage, canceled flights, and other misfortunes. The insurance can be obtained for both domestic and international travel. International travel insurance is often purchased from the day of departure until the traveler returns to India. Purchasing travel insurance guarantees complete coverage in the event of an emergency abroad. There are various companies that offer travel insurance for domestic travel; however, it is a more common choice for international travel.
Depending on the traveler’s needs, specific plans may cover a wider range of hazards. The policy and plan that the traveler chooses will determine the extent to which these risks are covered. At an additional cost, travel insurance also includes other hazards. Some of these dangers are unique to the traveler or the destination they are visiting. In general, some of the risks covered under travel insurance are personal accident cover, permanent total disability, accident & sickness medical expense reimbursement, repatriation of remains in case of death, dental treatment relief emergency evacuation, baggage delay, loss of checked baggage, loss of passport, flight delay, home burglary, trip cancellation, bounced hotel booking.
Types of Travel Insurance
There are travel insurance plans created specifically for single trips. However, purchasing a multi-trip travel insurance policy is a recommended alternative for travelers who travel abroad frequently. There are also insurance options that cover multiple visits to the same location for the duration of a whole year. For businessmen and frequent visitors to a specific location, choosing such plans is considerably more cost-effective. Many companies also offer student plans at a reasonable premium that are specifically created for students traveling overseas to pursue their studies. Group travel insurance coverage is another variety of travel insurance. These plans are affordable and provide advantages compared to those single-trip travel insurance plans. Policies for group travel insurance are based on the ages of the travelers, making them more affordable for each one in the group. When a travel agency is leading tours across multiple geographies, most of them choose to purchase group travel insurance plans.
Is Travel Insurance mandatory?
For many countries, travel insurance is mandatory and they may decline you to enter their country without valid insurance. But why purchase insurance only because it’s mandatory for an international trip, flight tickets, health, and luggage are all equally important regardless the travel is domestic or international.
Why is it crucial?
Unforeseen medical emergencies: While planning for a foreign trip, you want to be least concerned about an unfortunate medical situation such as a severe medical emergency, disability, or death. Additionally, healthcare services on foreign soil are expensive. Accordingly, it becomes crucial to consider covering the risk of medical crises and unforeseen costs during a foreign trip. Thus, appropriate travel insurance could save your wallet.
Loss of luggage: Losing your luggage, passport, or other crucial travel documents when traveling puts you in a concerning state. It can land you in a complete mess. But if you have travel insurance coverage, you can receive a certain, agreed-upon amount of compensation in the event of loss of possessions. You could also submit a claim in the event that your luggage is delayed. If you lose your passport, you may be reimbursed for the cost of getting a replacement or duplicate passport.
Flight cancellation or delay: Using travel insurance coverage, you can save your pocket by receiving compensation or a refund for at least a portion of the ticket cost when there is a delay or cancellation of a flight. Without insurance coverage, you would forfeit this benefit and incur a loss.
Loss of a debit or credit card: It is a common worry to lose a debit or credit card while on vacation and become a victim of card misuse. But you don’t run the danger of losing that money if you have reliable travel insurance coverage. Based on the policy chosen, you can get your money back if the issue is reported within 12 hours of the loss of the card.
It’s all about overcoming the unexpected in life. Even if you have never considered purchasing travel insurance before, we recommend you to consider it now for your upcoming travel plans. Any of the above can happen when you travel, especially to a foreign country: illness, accidents, theft of your personal property, lost luggage, or any other problem. Getting travel insurance for you and your family is the best approach to reducing the dangers that could ruin your travel plans. Depending on the service provider, the price, exclusions, and coverage of travel insurance will vary. Before buying the insurance, the buyer should carefully read through all disclosure documents.
Call to Action
Once you are familiar with the definition of travel insurance, choosing coverage is simple. Choose a travel insurance policy that offers extensive coverage for your overseas vacation. Transcorp International Limited (‘Transcorp’) provides both domestic and international travel insurance policies for medical treatment, luggage, etc. The insurance policies from Transcorp can be purchased for INR 300–400. Transcorp provides a range of travel-related services including foreign exchange, outward remittance, student loans, travel services, etc. They envision delivering the best travel and financial services across demographics.