Travelling is an enriching experience. We believe in the motto “Memories are the Best Souvenirs”. Memories last for a lifetime and we want them to be pleasant ones. But travelling does come with its share of risks and the maximum we can do is to neutralize it. This is where having a travel insurance makes all the difference. It is the one item that is always right on top of my packing list but I hope I do not use it. Nevertheless, it is a small price to pay for the well-being of your family and your piece of mind. Choosing the right one can be a little a daunting and so to help you out here is Everything You Need To Know About Travel Insurance.
Everything You Need To Know About Travel Insurance
What is Travel Insurance
Travel Insurance basically works like any other insurance, the difference being – here you get covered for expenses in case of a mishap you suffer while travelling. It works in areas that do not come under your medical and other insurance. So it cannot be substituted by the same. Travel Insurance usually works away from your place of residence and insures you against medical emergencies, cancellations and baggage loss.
How It Works and Which Plan To Choose
The insurance provider will ask for a premium that depends on the place and duration of travel. The amount will also change depending on your age and the type of activity you would like to indulge in while travelling. So basically if you plan to do some adventure activity you will be charged a higher premium as compared to a strictly sightseeing trip. Primarily you need to decide how much cover you will need if anything goes wrong.
The Standard Plan covers overseas medical expenses, baggage and certain activities. Whereas the Explorer Plan covers the Standard Plan benefits plus some more adventure activities. So you need to decide beforehand what all activities you might indulge into and then choose the plan accordingly. Some insurance providers do not let you change your plan in the middle of travel so this has to be finalized before you leave for your trip. Make sure your choice activity is included in the plan you choose, you cannot add it later. However, plans do have some restrictions regarding some destinations and activities so kindly read the fine print before deciding on one.
Travel Insurance provides a cover for cancellations for specific reason mentioned in the policy. The usual reasons are medical emergencies, weather conditions and terrorist attacks. However, the “Cancel For Any Reason”(CFAR) provides a cover for more other reasons as well. It is an optional service and gives you more freedom and flexibility. CFAR is the only policy at present to cover cancellations due to Coronavirus. But you need to fulfill some eligibility criteria to qualify. A regular travel insurance policy costs around 4% to 8% of the total trip cost whereas the CFAR will cost you about 10% to 12% of the trip cost.
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Why Do You Need A Travel Insurance
From my years of travelling experience I can tell you for sure that things do go haywire and not as per your plan many a times. In our initial years of travelling we learned the importance of not having a travelling insurance, the hard way. So you could learn from our experiences and protect what you have paid for. Thereby, are the three main reasons why you need a travel insurance.
Medical Emergencies
This is the main reason to opt for a medical emergency. Medical incidents may happen anywhere even in the most exotic locations where the needed help is difficult to get. In many places no hospital will treat you unless you pay upfront or show the travel insurance policy. Moreover in offbeat places good medical service is difficult to get and you need to get to a better place to get treated. This is where having an oversees medical coverage makes sense.
While swimming in the open waters of Arabian Sea in the exotic atolls of Lakshadweep one co-traveller was unfortunate enough to be bitten by an equally exotic marine creature. In no time his hand swelled up to resemble that of Hulk. Since we were on a small little island of Kalpeni with no hospitals, he had to be transported to Kavaratti, the capital of Lakshadweep. Now, transport between these islands is limited to passenger ships and he had to wait for a good 48 hours to reach a hospital, the island people had to call for a private boat which did cost a bomb. Since he did not have a travel accidents insurance he had to shell the entire amount from his own pocket. A leisure trip turned out strenuous for him.
Cancellations
A Trip Cancellation Benefit usually covers many reasons for cancellation. But a Cancel for Any Reason (CFAR) covers many more reasons. So decide your policy plan accordingly.
Cancelling a trip is always unfortunate, it is even more painful if we still need to pay for it. We had booked and paid for flights, hotels and travel vouchers for our travel to Sri Lanka. But due to some issue we had to cancel our holiday. We had no travel insurance so ended up losing a large chunk of money. This was an eye opener for us. Having a travel insurance would have cut down on our losses.
Baggage
Baggage theft, loss or damage is another reason to get a travel insurance. A insurance provider can arrange for emergency cash and temporary documents in case of stolen passport and wallet. Delay in getting your baggage from a carrier, loss in transit and even camera theft are not uncommon. A proper coverage can allow you to make a claim for it, thereby reducing your losses. Make sure you read the plan properly to know what all is covered.
Once we left our GoPro in a jeep safari. When we were getting ready for the morning safari the next day we realized it missing. We tried to locate it but it was already too late. Luckily we had it covered under travel insurance so didn’t suffer much loss.
Pro Tip: Always keep copies of important documents like visa, passport, policy papers with you, even better is to store them on cloud. It’s easier to file a claim this way.
Is Travel Insurance Mandatory for Foreign Travel?
Having a travel insurance has many benefits and is always recommended to have one. However, it is mandatory in many countries. As of now, 34 countries have made travel insurance mandatory for tourists. This move is to protect the tourists from heavy treatment fees in case of emergencies. As the cost of hospitalization and treatment is quite high or maybe inadequate.
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List of Countries where Travel Insurance is Mandatory |
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|---|---|---|
| Schengen Countries (26) | UAE | Cuba |
| United States Of America | Qatar | Ecuador (Including Galapagos Islands) |
| Russia | Turkey | Antarctica |
How to choose the Perfect Plan
Now that you know the importance of having a travel insurance, the next step is to choose the right one. Here are some pointers that will help you in doing so:
1. Types of Plan
Depending the place of visit, duration of stay and the amount of coverage you need there are wide options to choose from:
- Trip Cancellation or Delay
- Loss or delay of Baggage
- Emergency Medical Care – Does not cover routine check ups
- Medical Evacuation Services
- Accidental Death Policy
There are a few travel credit cards which do provide some kind of insurance and travel protection but you will need to check out the TnCs for the coverage rules and restrictions for use as its not always easy to claim the insurance, when you really need it!
2. Single Trip or Multi Trip
A short term or single trip covers 90 days whereas long term or multi trip provides a coverage of 1 year.
3. Analyze your Risks
Since you are the one who has paid for the trip and the baggage; only you can analyse the amount of coverage you need. It is better to research the risk at the place of travel and weather conditions to decide on the type of coverage you want to include in your policy. If you intend to do any high risk activity then take a cover for that too.
4. Rental Car Coverage
In case you will be going for a car rental, include a rental car coverage in your travel policy.
5. Check your Existing Policies
If you are already covered under some health policy, chances are that you will be insured with travel expenses also. However, to what extent needs to be checked. In some existing policies riders can also be added to suit your need. Connect with your insurance provider for complete details.
6. Refund / Claim Policies
Before finalizing on a travel policy do not forget to read up on its refund and reimbursements. How fast and hassle free you get your refund is also a main deciding factor.
7. Compare
Compare policies of different insurance companies and then make a decision. Compare what all is covered and what is not, the deductibles and lastly the cost of policy. Choose the one that covers your pre-existing conditions. Read up on reliable reviews to make the decision easy.
Why buy travel insurance from World Nomads.com?
- Backed by specialist insurers and global assistance partners
- Buy Online, even if you’ve already left home
- Buy more cover and claim online while travelling
- Covers a range of adventure sports and activities
All of the information provided about travel insurance is a brief summary only. It does not include all terms, conditions, limitations, exclusions and termination provisions of the travel insurance plans described. Coverage may not be available for residents of all countries, states or provinces. Please carefully read your policy wording for a full description of coverage.
Travel Insurance in Times of Covid-19
The Coronavirus pandemic has changed the way the world travels and with it the travel insurance policy has also changed. As of now, there is no coverage offered if the country or place you are travelling to has imposed a travel ban. As per the rules, falling sick in the pandemic comes under the “Foreseeable event” so you won’t get a coverage. Also, the trip getting cancelled due to this foreseeable event does not come under the standard clauses for making a claim for cancellation. This is where “Cancel for any reason” plan works out. The exact coverage during travel in the times of Covid-19 is still hazy and so clearing it up with the policy provider is the only viable option here.
