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What is Travel Insurance Policy?

A travel insurance plan protects the policyholder from losses while travelling. It covers medical coverage, luggage loss, flight cancellation and delays.

  • 05 Aug 2022
  • 4 min read
  • 1159 views

Traveling to new or unexplored places is both thrilling and expensive. Trips, especially those taken overseas, can be full of surprises—some pleasant while some could be nerve-wracking. This is why it is very important to secure your trip with travel insurance before you board that flight.

Today, many insurance companies offer customized travel insurance plans to suit your specific needs. Here's what you need to know about them.

About Travel Insurance

Travel insurance helps you cover unpleasant situations that may arise on an international trip by compensating you financially for your losses. These include passport loss, flight cancellation/delay, hotel extensions due to lockdown, medical emergencies, Covid emergencies, and more.

Different types of travel insurance

Based on your travel frequency, the insurer provides you with an option to choose between single-trip and multi-trip insurance.

· Single trip travel insurance

A single trip policy is an international travel insurance policy that only covers one trip. The policy's coverage begins the day your flight takes off and ends when you return home from your trip.

· Multi-trip travel insurance

This type of international travel plan is suited for frequent travelers. The policy covers multiple journeys to the same or different destinations up to a certain number of days.

Benefits of travel insurance

A travel insurance policy offers numerous advantages. A few of them are detailed below:

1. Coronavirus cover

It is practically impossible to find a country that has been spared from the COVID-19 pandemic. In light of the pandemic, whether you are traveling domestically or internationally, the risk of contracting the virus is high. Travel insurance that covers medical emergencies including Covid will help you take the financial burden that may arise due to coronavirus infection.

2. Baggage cover

Another great benefit of travel insurance is baggage cover. Imagine paying for items that you had already packed in your bags, lost due to someone else's error. In such situations, travel insurance comes into the picture. Here's how:

  • If your luggage is misplaced or stolen, the policy will cover the cost of essentials such as toiletries, medicines, and clothing.

· In the event of delayed baggage, travel policies usually cover the costs of necessities until your luggage is returned.

3. Medical cover

Medical coverage in a travel insurance policy has a broad definition. Let's start with the most crucial thing first. If you are travelling outside of India, then your active medical insurance policy will be useless in case you fall sick. Why? Because most health insurance policies cover the cost of medical treatment only if it is taken within the country.

Now let's talk about the situations covered by your travel insurance.

If you meet with an accident or become ill due to a change in weather conditions on your trip abroad, the travel policy will cover the cost of the immediate treatment.

  • Travel insurance also pays for emergency medical evacuation if your medical condition requires long-term therapy and local doctors recommend treatment in your home country.

· If you become unwell and are admitted to the hospital, the insurer will cover the cost of the compassionate visit. Make sure you check the clauses related to this point with the insurer before purchasing the policy.

Also read:

4. Journey-related cover

Situations such as a delayed flight, medical condition, or violence in your destination may sometime require you to extend your trip abroad unexpectedly. Travel insurance helps you by compensating for the financial losses incurred by you.

Key things to consider before settling on a travel insurer

  • Always compare the scope of coverage and the policy features of various insurers.
  • Put some effort into comparing the claim settlement ratio and claim process of different insurers.
  • Check if the insurer only offers individual travel plans or also offers family travel plans. Also, see how many family members you can cover under a family travel insurance policy.

To sum it up

Always purchase a travel policy before kickstarting your vacation or business trip. It protects you financially while allowing you to fully enjoy your trip.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the mentioned industry. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

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