Ready for the next trip? Here’s why travel insurance is a must

A travel insurance policy covers any financial losses that one might incur due to lost or misplaced luggage, cancellation, delay or interruption of trips, loss of passport, etc.

The policy is also likely to offer other benefits such as access to urgent assistance (including repatriation of bodies, emergency medical expenses, etc.) while you are abroad. While this protection is primarily for those travelling abroad, one can also get travel insurance to cover domestic trips. The policy term in such cases covers just the duration of the trip. Unlike motor insurance, buying a travel insurance policy is optional. So, should you opt for travel insurance?

“Falling sick during your travel could ruin your entire trip and affect your budget,” said Rakesh Goyal, director of Probus Insurance Broker.

“Travel insurance offers medical cover, particularly if you are hospitalized abroad and need to fly back to India immediately for treatment. Further, such policies also cover any damages to rental cars and trip cancellation for any reason but that depends on the type of policy you purchase and when you buy it,” he added.

In addition, some polices cover any additional expenditure caused by flight delays. In some cases, the insurer can also extend the coverage of the policy for a specific duration in case of flight delays or if your trip gets extended due to various reasons.

V Gurunathan, director and CEO, TVS Insurance Broking Limited, said, “Insurers provide various options depending on the sum insured. The higher the sum insured, the better it is for travellers. A few insurers may ask for medical tests, particularly for elderly people, before issuing the policy. It is better to go throught the terms and conditions before buying any policy.”

Deductibles and exclusions: Travel insurance policies come with certain terms and conditions.

For instance, while the policy covers delays pertaining to flights and baggage, the insured can seek reimbursement only if there is a delay of more than 12 hours.

Also, while policies have a cancellation cover, insurers may compensate you only partially for the cost of your travel expenses, be it for flights or cruise travel.

Gurunathan said, “The policy exclusions include claims arising from pre-existing diseases, medical expenses incurred due to alcohol and/or drug abuse, or any costs related to psychiatric disorders, etc.”

Mint take: Insurers offer different types of travel policies but it is up to you to compare all available options before making a final decision.

Experts say it is better to identify your requirements first and then find the optimum policy that fits your needs well.