How does travel insurance work?
Posted by neha sharma on May 8th, 2019
Travel insurance is a type of insurance policy which covers the risk of loss, damage, injury occurring while the policyholder is travelling. This insurance is for a specified period of time. It can either be a single trip insurance which covers travelling risks for one single trip, or it can be multiple trip insurance which covers these risks for one year with multiple trips. Multiple trip insurance generally benefits business travellers and long term travellers who travel frequently. The condition for multiple trip insurance is that each trip should not be longer than 30 days. However, some insurance companies extend this to 60 days.
Travel insurance covers a wide range of risks such as:
The premium for travel insurance is generally decided based on the accident and sickness medical reimbursement benefit. Insurance companies offer different plans based on this amount.
The different types of travel insurance are:
Apart from this, depending on the location, travel insurance can be classified as:
The premiums for each location are different based on the assessed risks of travelling to that region.
A travel insurance policy excludes:
What to do in case of loss or hospitalization?
In case anything happens during travel, one thing that has to be done is to contact the insurance company as soon as possible. Insurance companies provide 24x7 support for the policyholders. The next thing is to check the policy document or the insurance company’s website for network hospitals. These are hospitals that have an agreement with the insurance company. Getting treatment done in a network hospital will mean cashless treatment since the insurance company will pay the treatment costs directly to the hospital.
In case the company has no network hospitals, you can get treated at any hospital and then get the treatment costs reimbursed from the insurance company. In case of other losses, you will need to raise a claim with the insurance company after the trip is over. However, some insurance companies have an online claim process where the claim can be raised online.
How to buy travel insurance:
It is very easy to buy travel insurance online. These policies can be bought directly on the insurance company’s website or through an insurance aggregator. Before buying the policy it is important to compare the inclusions in the policy and the insurance company’s claim settlement ratio before opting for the policy.
Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about travel insurance. Through her work, she has mentioned the risks it covers and its different types
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About the Authorneha sharma
Joined: April 18th, 2019
Articles Posted: 59
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