The insurance industry is believed to be one of the most competitive industries in the world today. People are of the opinion that taking insurance will go a long way in reducing risk, and also in meeting any surprise expenses. Travel insurance works like any other insurance policy. With incidents like terrorist strikes, flu epidemics etc which could spoil a family holiday, becoming more commonplace nowadays, taking a travel insurance covers such unforeseen risks.
Even if you fall ill while on holiday and need to be hospitalized for whatever reason, your travel insurance policy will come to the rescue. You would especially benefit from it if you are a person who has a job with a lot of traveling to do. The idea of taking such a policy is to ensure that you do not end up paying too much due to some unforeseen circumstance while traveling.
Take for instance, a member of your family falling ill abroad, when on holiday. Being in a new country, there would be a lot of formalities to take care of first and then after the treatment is over, you would be presented with a huge bill. Having travel insurance beforehand stops that from happening. Most organizations take out a travel insurance policy for their employees if they have to travel a lot. Sometimes, good deals are available if more than one person in a family takes up that insurance. Whatever your choice is, make sure that the insurance policy covers the dates of your travel or holiday. So what does travel insurance cover?
- It makes sense to have a cover if you have to travel to a country where you know an epidemic is taking place, but in that case make sure the policy covers all kinds of medical eventualities and recovery.
- Most people claim insurance on the grounds that their trip was either cancelled or cut short because of some unforeseen circumstance.
- If bungee jumping, mountaineering or some other activity of the same nature is on the agenda, take a policy which would cover you for that.
- Accidents can also happen because of you, so go for a cover that gives you a good level of personal liability cover. This is in case there are any lawsuits or the like filed against you.
- Stole, misplaced goods and valuables are another reason people opt for this insurance.
- If traveling abroad happens very rarely for you, try going for a cover to suit your needs. Cheap, annual coverage policies are available for frequent travelers.
So how do you go about deciding what kind of a travel insurance policy you should go for and if you really need one?
- Look at whether you really need it or not. If you are financially equipped to take care of any situation, you probably don’t need it then.
- Ensure that medical coverage is given utmost importance in the insurance policy, because getting care in the best of hospitals is very important.
- Check any existing policies you may have taken to check if you are already covered for travel insurance. Then find out how you could claim for the same and whether any other formalities need to be done first.
- Travel insurance policies are a true blessing for those who travel a lot, mostly because of the profession that they are in. So, look at annual or year round travel insurance policies. Since the policy covers a much more extensive period in time, chances are that they would be cheaper too.
- As the insurance industry is a competitive one, every insurer would have his own set of clauses and rules under which you could claim coverage. Do not be under any kind of impression but instead make sure that you understand what exactly you are covered for and also how to claim if should a need arise. There may be different reasons per insurer for both cancellation and interruptions.
- Looking at the deals that only one insurance agent has are one of the biggest mistakes made by most people. Restricting yourself is not a good option at all. Instead it is only when you compare different dealers will you understand the market, and the rates. Get help from a dealer you may already have an insurance policy with for this.
- Insurance polices usually use a lot of terms that you may not be aware of. O ask what exactly the terms mean.
- Whoever you decide to take a policy with, make sure that it is not a start up operation but that it has been around for some time atleast. You would not be able to claim any coverage or refund from a bankrupt dealer. So it is best to stick with an insurance company than with just one solo dealer.
In addition to taking the policy, remember that few other points should be kept in mind. Firstly, carry id, photos and all travel documents with you wherever you go. Any loss of luggage or theft of valuables should be reported as soon as possible to the police or to the airline responsible for the same. Making a claim means that it would be best if you could contact your insurer first just to check the details. When giving any documentation, medical proof, receipts or the same to any authority, keep a copy for yourself that you can refer. There may be times when you find that you really cannot claim for something you thought you could because you are not covered for it in the first place. If things go way out of hand, and you feel you are not being treated fairly there is always the option of referring your case to the consumer court.