COMPREHENSIVE COVER: It includes bail amount if student is arrested on bailable offence
It is that time of the year, when students are headed for studies abroad. Given that admission deadlines for schools and colleges begin in January, many foreign-bound students will be busy arranging finances to pay fees and fulfilling other formalities. To ensure, there are no unpleasant surprises and to avoid expenses due to unforeseen risks, it is imperative that students consider a comprehensive overseas travel insurance policy.
Not just travel insurance
Unlike travel insurance, which is for a short duration with limited coverage, student overseas travel insurance policy provides a comprehensive cover. It is offered for students in the age bracket of 16-35 years and for a maximum period of up to two years. Moreover, it goes beyond just providing health coverage. The other benefits are bail bond and study interruption; also the sponsor protection in the event of accidental death of the sponsor. For instance, the insurer pays tuition fees in the event of the death of the sponsor. Here, the sponsor may not necessarily be parents but someone who pays the tuition fees of the student. It also covers the bail amount in the event of a student's arrest in case of a bailable offence and compensation in the event of interruption of study.
Interestingly, a compassionate visit is a two-way cover, where if a student is hospitalised abroad for more than seven days, the policy will cover for an immediate family member's travel and stay cost. The other way it works is by sponsoring travel costs to visit an immediate family member back home in case of their hospitalisation.
The covers that the policy provides include accidental death, permanent disablement, emergency medical expenses including medical evacuation and body repatriation, emergency dental treatment, loss of passport, delay of checked baggage, loss of checked baggage, personal liability to a third party, bail bond, study interruption, sponsor protection and compassionate visit.
Check the university requirements
It is mandatory for students travelling abroad to buy an insurance policy.The first step will be to check the requirement of the country/state followed by the university's requirements. Within USA, for instance, there could be different rules prevailing for different states. It is important to check the insurance requirements as few universities request students to compulsorily buy insurance from them or from an insurer located in their country. Some universities especially, those in USA and Canada, are increasingly insisting that students should take additional covers for maternity, mental illnesses as well as for drug addiction.
Compare apples with apples
The next step is to research about different insurance policies and to compare features. Look out for the best policy and not just an inexpensive policy. First, check if there is a compromise on the sub-covers or if there is any omission of certain covers, which should reflect in your premium amount. Students must carefully look for some key features and deductibles such as adequate medical coverage, personal liabilities, loss of passport, delay or loss of baggage and many more.
Relevant cover
Save on premium by choosing a policy that is continent-specific as against worldwide covers. For instance, if you are heading to Asia or Europe, opt for a cover that adequately provides a cover specific for that continent and excludes the USA and Canada. As per an estimate after deducting taxes, a worldwide cover for $ 100,000 for two years costs Rs 30,000, as against Rs 15,000 which excludes the United States and Canada.
Other factors
Choose an insurer with maximum reacha and single worldwide toll-free number that can give responses in local languages. Insurers that give the flexibility to arrange for cashless treatment even in a non-network hospital should be preferred. For instance, if you choose to study at Harvard, you must ensure that the insurer has network hospitals in the college vicinity.
Smart trade-off
Ensure that the premium does not pinch one's pockets. Choosing a plan that does not have a lot of exclusions or an exorbitantly high deductible is vital. However, also ensure that one has an adequate cover in terms of the sum insured as insurers do not allow it to be increased later. Selecting a longer tenure also ensures you a fixed premium.
The writer is member of executive management, HDFC ERGO General Insurance
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