Travelling? Pack the right insurance

When you set off from home on a long trip, the one thing that you inevitably do is to double-check that you have turned off the lights, correct? Well, with the current backdrop, you would probably be well off to check that your travel insurance is also in place.

From losses to delays to health issues, this seemingly tiny bit of minutiae may just give you that edge for a safe and a successful trip, away from home.

"Today travel insurance is more of a necessity than a luxury," says Parag Ved, executive vice president and head consumer lines, Tata AIG General Insurance about the need for travel insurance.

Since travel insurance covers medical and non-medical eventualities, it really helps the customer during any emergency medical event, personal accident, in case of baggage loss, baggage delay, trip delay, trip cancellation, etc. It's advisable that all travellers opt for a travel policy to manage unforeseen contingencies adequately, especially on foreign turf.

"Remember that emergency medical treatment can be a significant dent to your pocket in most developed countries and it's prudent to cover self for these eventualities," says Anik Jain, co-founder and chief executive officer, Symbo Insurance.

Do note that travel insurance has also become a sort of mandatory for travelling to specific destinations. Approximately 30% of travellers from India are visiting Schengen countries, where medical insurance is compulsory. "Increasingly, more and more countries are making it mandatory or as a check-point whilst issuing visas," adds Ved.

Now one objection will be why go in for insurance when you believe that your airline will reimburse you if your baggage is misplaced, delayed or lost?

"People overlook that coverage is available only when the baggage is in the custody of the common carrier, which in most cases is the airline," says Ved. Do remember that the policy will cover only checked-in baggage and delay in receiving baggage outside Indian boundaries.

Many travellers think their airlines will reimburse them in case they miss their flights due to connecting flight delays or in case of flight cancellations, but most airlines do not reimburse unless it's for some unavoidable reason. More often than not, the fine prints in airline insurance make it nearly impossible to get any coverage. Also, in case you have to cancel your flight due to illness or an emergency, you are left high and dry without insurance.

Also, travel insurance is certainly available for other modes of transport such as railways, cruise lines, road and domestic travel. "You have the option of buying travel insurance for these modes of transport at the time of buying the ticket," says Pramesh Parikh, VP-Anand Rathi Insurance Brokers.

"Besides medical expenses and lost baggage, there are other points that people tend to overlook when buying their travel insurance policy," says Anurag Rastogi, chief actuary and chief underwriter, HDFC ERGO General Insurance Company.

These include personal liability (death, injury or damage to third party health or property), financial emergency assistance (emergency cash if robbery, theft or dacoity abroad), hijack and hotel reimbursement extension (reimbursement of hotel expenses for the individual and his family members if the insured is hospitalised for more than 5 days).

Again in travel insurance like any sort of insurance make sure that your paperwork is in order prior to claiming your reimbursements.

"There are two categories of claims (in travel insurance). One related to medical reasons such as sickness, hospitalisation, accidental, dental and other is related to trips such as loss of passport, baggage, trip or flight cancellations," adds Parikh.

For medical related claims, upon hospital admission, you need to give your certificate of travel insurance to the hospital authorities, who would help you in lodging the claim with your insurer. Additionally, you may call your service provider helpline number to help you with the process.

For reimbursement claims related to sickness consultations, dental treatment, including expenses incurred during hospitalisation but not cleared during the cashless process, preserve the bills along with the prescription and other necessary medical reports in original. "You may claim them upon your return to your home country," says Parikh.

For lost passport or baggage a police complaint, complaint to airline/airport authority with their acknowledgement are necessary documents required to process the claim along with expenses incurred at passport authority offices and charges by airport/airline. In case of flight cancellation or delay; letter/message by the airline is a required document; though it may sound unnecessary, some insurance companies do insist.

"It is best advised that one should intimate the claim to the insurance company on the numbers provided in the Travel Insurance Policy or to your Insurance Advisor, during your trip itself rather than on landing in India," says Parikh.

"For third-party loss, it's best to call up the assistance company and register a claim, post which they would appoint a legal team to represent the insured," says Ved.

"As in any insurance, one should make complete disclosure of travel plan, health situation etc while buying a travel insurance policy," says Jain.

Unfortunately for your tax planning travel insurance is not tax deductible for an individual. However, they are allowed as business expenses if bought by a company.

Sickness and medical reimbursement limits are the drivers for a travel insurance policy. Travel insurance covers (insured) range from $50,000 to $500,000. "Premiums depend on the geography of travel (America/Asia/Rest of the world), age of the traveller and duration of the trip," adds Parikh.

"I suggest that the buyer (insured) must look at the medical coverage and the reputation of the insurer in the international market and its service assistance provider," concludes Ved on how to choose the policy that will safeguard you on your voyage from home.