Travelling is often seen as the most enjoyable activity, but it can also sometimes be the most challenging. Risks like missing a flight, losing personal belongings, or falling ill during a trip can ruin the experience. Travel insurance can serve as a safeguard against such situations. This article will explore the benefits of acquiring travel insurance through a credit card.
What is the Travel Insurance Benefit of a Credit Card?
Credit card travel insurance will assist you in case of any delay, change in schedule, or cancellation of your trip. Here are some key benefits:
Trip Cancellation and Interruption:
This policy allows you to claim back non-recoverable expenses if you need to cancel or shorten a trip due to illness, injury, or a death in the family. It protects you from being stranded in unexpected situations without the funds to manage your travels.Trip Delay:
This coverage caters to any additional expenses if your trip is affected. It often compensates for costs such as extended hotel accommodations, extra meals, and other incidental expenses that result from delays.Lost or Delayed Baggage:
This insurance typically covers reimbursement for lost, stolen, or delayed baggage. It helps you replace essential items, ensuring you have the necessary funds and peace of mind while travelling.Medical Emergencies:
This policy covers situations where you fall sick or get injured while travelling. It also includes emergency evacuation when needed, ensuring you receive appropriate medical attention and are transported to a hospital.Travel Accident Insurance:
This policy provides compensation coverage if you pass away or suffer an injury resulting in disability while on the trip. It offers financial support to you or your beneficiaries, thereby easing the impact of such occurrences.
Credit card travel insurance covers incidental expenses, which can be quite expensive and burdensome if not well managed.
Typical Credit Card Insurance Coverage Options
Coverage of travel insurance differs according to the credit card issued by the respective banks. Here are some common options:
Coverage Limits:
The actual possible discriminatory factor varies with the maximum amount that one can claim. Accounts involving luxury premium credit cards have an added advantage because they generally come with higher coverage limits.Types of Covered Trips:
Some cards may limit their usage to within-country travel only, while some permit travel to other countries.Specific Exclusions:
Pre-existing medical conditions, sports considered dangerous, and exotic destinations may be excluded from the policy.Length of Coverage:
They may specify a maximum number of days for which the trip can be covered, such as 30 or 60 days.Supplementary Benefits:
It's also important to note that some cards offer special privileges, such as rental car insurance, purchase protection, and travel assistance services like concierge services.
Eligibility Criteria to Apply for a Credit Card Travel Insurance Benefit in India
To benefit from travel insurance offered by credit cards in India, you need to meet certain eligibility criteria:
Card Type:
Some credit card facilities do not include travel insurance as one of the benefits. Often, such coverage is available as an add-on and is included with Platinum or Gold credit cards.Travel Booking:
It is usually required to make the travel booking using the credit card that offers the insurance to activate the coverage.Age Limit:
Certain benefits, such as travel accident insurance, might be limited by the card's age.Residence:
For these benefits, you typically must be an Indian citizen to qualify.Activation:
It is also possible that some insurance benefits are only paid if you inform the card issuer before the trip.Documentation:
When making a claim, you are expected to attach documents such as receipts, travel itineraries, and physicians’ reports.
Meeting these criteria ensures that you can fully utilise the travel insurance benefits your credit card offers.
Do I Need to Get a Separate Travel Insurance Plan if My Credit Card Already Offers Insurance Coverage?
Even if your credit card provides basic travel insurance, it is still wise to purchase additional insurance for the same trip. Here's why:
Coverage Limits:
Comprehensive protection is typically offered in standalone travel insurance packages rather than those linked with credit cards.Comprehensive Coverage:
Sometimes, standalone travel insurance offers better and more comprehensive coverage for pre-existing medical conditions or adventure sports.Customisation:
Stand-alone policies often provide specialised options, such as enhanced medical coverage or trip interruption insurance, tailored to specific needs.Primary vs. Secondary Insurance
Credit card insurance is typically supplementary, meaning you must cover any costs not paid by your primary insurance.Peace of Mind
Having insurance can provide peace of mind during trips, ensuring that you are fully covered and protected.
Considering all these factors can help you decide whether you should obtain additional travel insurance online to enhance your coverage.
Conclusion
Travel insurance provided by a credit card can be effective and save you a significant amount of money while travelling. It is important to understand what your credit card covers, the requirements for payment, and whether additional coverage is necessary. To be well-prepared for any incidents during your trip, consider either relying on your credit card’s travel insurance or obtaining a separate travel insurance policy.