Travel insurance offers protection against exigencies such as sickness, lost or delayed baggage and loss of passport

Every year, Indians undertake around 12 million overseas trips. But for every 100 people who go abroad, only 20-25 buy travel insurance. This is a very low rate of awareness or demand, but it is growing day by day. Travelling abroad or within the country unwinds one and leaves fond memories, but it can also be marred by sickness, injuries etc, which, apart from disturbing the holiday, has huge financial implications. It is to protect against such travel-related exigencies - both international and domestic - that travel insurance in recommended.

These solutions cover all important areas such as medical treatment, personal accident, emergency evacuation, repatriation of remains, hijack, trip cancellation, curtailment or delay, baggage loss, delayed baggage, personal liability, etc. This insurance predominantly covers hospitalisation arising due to sickness or accident in a foreign land. Medication abroad can be very expensive and can not only take away the pleasure of holidays, but can leave a deep hole in one's pocket. Insurance companies offer covers ranging from $50,000 to $500,000 towards such treatment. The policy is so structured that it covers personal accident, death and permanent total disability.

Baggage loss and baggage delay are the most commonly experienced inconvenience by travellers, and travel insurance offers cover against this risk. One point to be kept in mind is that this section covers only checked-in baggage and delay outside the territorial waters of India. So if there is a delay of baggage in any of the cities of India whilst a person is flying into the country, the same is not taken care of.

Inconvenience caused due to trip delay, trip cancellation, missed connections and loss of passport also form part of the travel policy, as is the possibility of hijack, a very real, and serious danger. There is the possibility of a personal liability arising on the part of the traveler, which can lead to litigation in the foreign country. The legal liability section of the travel policy ensures that the traveller gets adequate legal defence and financial loss if any, is made good. The travel policy also offers protection if burglary takes place in the unattended house back home, while the policyholder is abroad.

At the time of claim, the procedure is simple. If there is a medical problem, you need to contact the service provider, who will direct you to the appropriate hospital. These are cashless settlement and the traveller need not shell out any cash except the deductible. Other reimbursements, such as baggage loss, baggage delay, loss of passport, etc are done once the traveller returns to India. International SOS and Europe Assist are internationally acclaimed service providers who offer these services.

Note that the policy does not cover pre-existing ailments. The applicant needs to declare pre-existing medical conditions before they travel. The policy excludes acts of terrorism, war or war-like actions, pregnancy, suicide, self-inflicted injury, mental disorder, stress, anxiety, alcoholism, abuse of drugs, infection of HIV/AIDS, etc. The pricing of the policy - the premium - depends upon the country of travel, the number of days spent abroad, age of traveller and the type of coverage chosen. Premiums are higher for the US and Canada than for other countries. Similar to international travellers, insurance companies have designed covers for domestic travellers too. It too predominantly covers hospitalisation and personal accident. Additional frills like home burglary, trip delay, trip cancellation etc are also offered as add-ons.

Travel insurance in India has shown a reasonable rate of expansion in the last few years. With the passage of time, more advanced approaches are being introduced for awareness and easier purchasing. The point of sale is normally travel agents. So the next time you are travelling abroad, ensure that you have travel insurance in place. You will not regret it.

Source: http://digital.dnaindia.com/