Travelling is an investment you readily make. When you travel, the priority is to have the bookings done for the best accommodation, best touristy sites, etc. Buying travel insurance, however, should be the foremost priority if you are planning a trip. How travel insurance works, is that it forms a safety net against unexpected unfortunate events that may happen during your trip.

By way of your travel insurance, you would be provided compensation and support by your insurance provider, in return of the premium you pay.

Travel insurance is not a mandatory requirement in most cases. But if you invest in one, it will ensure that your trip is hassle-free. The importance of travel insurance can be understood from the following benefits the policy offers:

• Medical Emergencies: When you go on a trip, be it for pleasure or for business, the last thing you would want falling sick. Still worse, suffering from an injury. However, accidents can happen anytime and anywhere. The travel insurance will provide you compensation for medical assistance that you probably need during your travels.

• Loss/Damage of Baggage: There are instances, especially in long-distance/connecting flight journeys, of baggage getting damaged or lost. In such cases, you can claim monetary compensation from your travel insurance provider.

• Trip Cancellation/Postponement: Sometimes even the most meticulous plans can go wrong. If you have to cancel or postpone your trip for some legitimate reasons, by way of your travel insurance policy, you can claim a refund on the flight ticket bookings, accommodation bookings etc. The only condition in such a situation is that the reason for cancellation or postponement of the trip should be legitimate and supported by some proof as well.

• Frequent Flier Programmes: Many times, you may be required to fly out or travel due to business needs. Applying for separate travel insurance policies before every trip could be challenging. Travel insurance companies solve this by providing multiple-trip programmes which can be easily availed if you are a frequent flier.

For you to understand how does travel insurance work, a few points are elaborated below:

• Step 1: Whenever, during a trip, you face an unexpected situation--bodily injury, loss of baggage, medical emergency etc-- you would need to inform your travel insurance provider. This can be done via an e-mail or telephone.

• Step 2: Once you connect with your travel insurance provider, they will ask you for certain supporting documents to supplement your claim form. It is your responsibility to diligently complete all the documentary obligations for the claim process to move forward.

• Step 3: Upon close scrutiny and investigation by your travel insurance provider, the appropriate compensation, basis your chosen insurance policy, would be provided by the travel insurance company.

A travel insurance policy can prove to be your best friend if an unfortunate event happens during your trip. Hence, it is vital that you chose this policy after enough consideration. Below are some of the important aspects which must be looked into when shopping for a travel insurance policy:

• Credibility of your travel insurance provider
• Geographical range where this policy would remain valid
• Provision for add-on riders on your base policy
• Coverage of medical conditions

An understanding of how holiday insurance works will come in handy if you land in an emergency situation during your travels. So, before you organise that long-awaited trip with friends and family, make sure you are making a smart travel insurance choice.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.