Travel insurance is a great way to cover risks while on a holiday. But, what happens to it when your trip itself is met with a problem. Read on to find out
So, you are all set for that international trip later on this week. You’ve done the necessary packing, brought new clothes, done your research and finished booking the hotel in advance. Just a few days to go and disaster strikes. The destination you were supposed to visit has been hit by a natural disaster.
An earthquake has caused havoc in the place and, at least for now, it is far from the dream destination you were hoping to enjoy. What happens now? All the bookings, the preparations, flight tickets are suddenly useless in the face of this adversity. But then you remember that you had made another smart move by purchasing travel insurance
What Is Travel Insurance?
Travel Insurance is an insurance coverage that can be brought by anyone going on international trips. It covers the insured against unexpected and unforeseen circumstances that may arise such as lost luggage, medical expenses, change of schedule and even trip cancellation.
Here we will discuss the various scenarios that can pop up, and when they do, what happens to your travel insurance and how it can help. These details may vary from insurer to insurer, so it is advisable to go through the policy wording of the travel insurance carefully to know what it covers.
Trip Cancellation:
Most insurance companies provide trip cancellation benefits that are limited to the sum insured. But, this benefit can only be availed before the date of departure. When a trip is cancelled, it can mean a huge financial loss, which is not only limited to the airline tickets but also advanced hotel reservations and bookings done for travel packages. With travel insurance, all of these losses are usually covered.
In the event of complete cancellation, the insurer will refund the premium amount given to him by the insured, but only after subtracting a nominal charge.
Trip Interruption:
Something even worse than cancellation of your trip is the curtailment of your trip. This is the situation where the trip has already started, but has to be cut short due to some unavoidable circumstance. These can encompass situations such as an unexpected critical illness, extreme weather, death of family member, terrorist incident or natural disaster.
Travel insurance will come to your aid here too. It will cover any additional transport expense that may arise due to the disturbance and even the cost of getting back home. Provided, that all of this is under the sum insured in the policy.
So, the next time when you think of going for that trip, never forget to buy travel insurance as it covers you from any untoward incident that can arise before or during your holidays as well.
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