You must have watched insurance advertisements often popping up on your TV screen promising you a safer lifestyle. Insurance is a type of contract through which policyholders obtain financial protection or compensation from the insurance company. Different types of insurance such as motor insurance, health insurance and travel insurance are available in the market today. Now, you might want to know more about travel insurance. In short, travel insurance covers the costs and damages which are associated with trips.When to buy travel insurance?
Travel insurance offers you financial protection from chaotic happenings during a trip. It is best to book insurance before departure so that any unforeseen trip interruption could be covered. Before buying a trip insurance, make sure you understand well what is travel insurance.
When buying travel insurance, it is important to understand travel insuranace details. You must know that risks or damages that are covered under an insurance policy are called inclusions and those that are not covered are called exclusions. It is important to note that inclusions and exclusions may vary from insurer to insurer. Some travel insurances cover damage to personal property, equipment, and rentals while others offer insurances more selectively. Let us go through the key travel insurance details:
- Some travel regulations cover damage to personal property, rental equipment such as car rental, and even ransom requirements
- The main risks covered by travel insurance include cancellation or interruption of travel and loss of luggage or damage to luggage
- Cover medical expenses caused by accidents
- Insurance coverage usually includes 24/7 emergency services, such as lost passport replacement, remittance assistance, and cancellation of flight reservation changes
These policies and risks covered vary from company to company. Let’s discuss the main key points of travel insurance in detail to understand what is travel insurance.Trip cancellation or trip interruption coverage
Trip cancellation coverage or travel delay coverage is used to compensate travellers for prepaid and non-reimbursable travel expenses. Insurance companies accept various reasons for cancellation and interruption. This, however, greatly varies from company to company.
Travel cancellation or travel interruption coverage may get excluded if you travel to areas known to be affected by severe weather such as hurricanes or earthquakes.Baggage insurance
Personal baggage insurance protects items that are lost or stolen or damaged during travel. If the luggage is accidentally lost or damaged in a flight, most airlines will refund passengers. Although the amount of reimbursement may be limited, airlines make sure their passengers are satisfied with any problems or travel delays. Personal baggage insurance offers additional protection in this case.
The possibility of loss or damage to luggage and personal belongings cannot be ruled out while travelling within the state or abroad. Many travel insurance plans limit reimbursements and will only pay for your belongings and not any other financial losses. Airlines and cruise companies can also be held responsible for any loss or damage to your luggage in transit.Medical Insurance Coverage
The two main types of travel health insurance are short-term health coverage and major health coverage. Short-term policies provide travellers with protection from five days to one year, depending on the policy chosen in the travel insurance plans. Major insurance is for travellers who plan to travel long distances. Such travels may require one to pay for medical expenses, medical evacuation, find doctors and medical facilities, and even use foreign language services for oneself or a family member.Conclusion
Go through the details of the insurance plan before you buy one. You can visit insurer’s websites for an understanding of the specific inclusions and exclusions. Many offer you travel insurance along with travel packages. Talk to different insurance companies and buy the one that is most suitable for you.
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.