Going on holiday is an important event for many of us. We spend much time, effort and money to plan the most memorable experience during our vacation. With rising income, many are travelling abroad for holidays as well. What happens if things don’t go according to plan? This is where travel insurance comes in handy. Although many consider travel insurance to be an unnecessary expense, buying one can make a lot of sense, whether you are travelling overseas or within the country.
Benefits
Medical Cover
In case of a medical emergency while travelling, a travel insurance policy can cover your liability to a large extent. Medical costs can be extremely high in foreign countries, and especially so in First World countries. Most travel insurance policies provide for cashless hospitalization and can be a boon in case of emergencies. Personal accidents are covered as well.
Travel Delays and Cancellations
Even the best-made plans can be disrupted due to situations beyond our control. Flights could be delayed or cancelled for a variety of reasons, including bad weather, emergencies and technical problems. Your airline may provide accommodation or make alternative travel arrangements in case of flight cancellation or delay. However, they are under no obligation to reimburse your hotel bookings or the cost of passes and tickets for any event you might have planned. A good travel insurance policy covers you adequately for any such eventualities.
Loss of baggage or documents
Despite the recent advances in technology, the fact remains that airlines lose a lot of baggage every year. If they happen to lose or delay your baggage, it can throw your travel plan out of gear. Similarly, if you happen to lose your travel documents, like a passport or bank credit or debit cards, while travelling, it can cause a lot of hassle. A travel insurance policy will cover you in these situations as well by providing you with emergency cash and reimbursing costs.
Missed Departure
A travel insurance policy may cover you in the case of a missed Air or rail departure arising from situations beyond your control. This normally covers situations where the departure was missed due to failure of public transport, or in the unfortunate event where the vehicle you are travelling in meets with an accident.
Loss of Tickets
You may also be covered in the event that the intended travel could not be completed due to the loss of tickets. In such situation, the original charges for the tickets are reimbursed.
Hijacking and Political Risk
In the unfortunate event that the policyholder is a victim of hijacking or any other political risks, the travel insurance policy may provide relief in such situations as well. Most policies will provide a daily cash allowance and/or a lump sum in case of such occurrences.
Personal Liability
A good travel insurance policy will provide you protection against personal liability as well. Suppose the car you drive in a foreign country happens to meet with an accident. Any liability arising out of the same may be covered by your travel insurance policy.
Costs of Insurance
The cost of insurance will depend on a variety of factors, such as the location where you are travelling, the type of visa, duration of stay, type of coverage, etc., but it is generally not very high. Companies now offer insurance for different geographies like the USA, Europe and Asian countries rather than universal policies. Travel insurance can be bought very easily online from websites of the insurance companies or insurance aggregators, and of course, through insurance agents.
Exclusions
Like any other insurance policy, it is important to read the policy document in detail to understand the benefits and exclusions of the plan. Coverage and benefits may vary from one company to another or even between two different plans of the same insurer. It is important to go through the policy documentation to understand the details of what’s included or excluded in the policy to ensure it meets your requirements.
Insurance is bought to provide protection for any unforeseen events that one may encounter. Although travel insurance may seem like an unnecessary expense, it’s of immense importance should the need arise. It’s suggested that you always buy travel insurance.