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What should be covered in travel insurance

March 15th, 2011
  • Overseas travel insurance should ideally cover medical emergencies, accident, personal liability, loss of baggage or documents, delays or cancellation of trips and other risks associated with travelling abroad.
  • Single trip insurance provides cover for a single return journey to a specified location. It is usually purchased with defined dates from the start till the end of a single trip and the policy terminates at the end date (so specified unless extended).
  • Typically, the cover for medical emergencies and related expenses is the overall cover for these plans while other benefits have specific associated sub-limits.
  • While comparing products, their features and prices, it is worthwhile to take into consideration some of the following:
    • For features related to coverage of medical expenses, consider sub-limits per illness. Products with no such sub-limits or higher amounts associated with these sub-limits may be better options.
    • Some products may have separate limits above a certain age. You may want to consider and compare these limits vis-a-vis the associated premium being charged.
    • Additional covers such as personal accident, loss/delay of baggage, trip delays/cancellation, home insurance while you are away, financial assistance in the form of emergency cash, etc.

How to make the selection?

  • Compare products not just on price but also on features, benefits, sub-limits, etc.
  • Read the key features carefully before buying an insurance contract.
  • Read the policy terms and conditions carefully when you receive it.

Check for policy exclusions.

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