What a travel insurance policy covers ::Business Line

Today, travel insurance is becoming very important for business trips and holidays. However, the awareness of buying this product is low in India.

Travellers simply buy a plan that suits their travel purpose the best, and which is easy on their budget.

But with the multitude of plans on offer, it is wise to be aware of the benefits covered, as well as those that are not, before buying any travel policy.

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PRE-EXISTING MEDICAL CONDITIONS

This is a common exclusion in many insurance policies. It refers to any medical condition that has required attention prior to travel or initiation of the policy. So, if you are suffering from an illness or condition that has been treated prior to your trip, most travel insurance policies do not cover these illnesses. Also, if complications arise from any surgery, illness or accident you sustained prior to the travel, it is not covered in most of the insurance policies.

MOST TRAVEL INSURANCES SPECIFICALLY ENUMERATE WHAT IS COVERED IN THE POLICY. ANY ILLNESS OR ACCIDENT OUTSIDE THIS LIST IS NOT COVERED. THEREFORE, DO READ THE SECTION ON DESCRIPTION OF COVERAGE IN THE POLICY DOCUMENT VERY CAREFULLY.

PREGNANCY

Insurance policies specify the conditions under which pregnancy complications or childbirth is covered, if at all they are. Travel insurance often classifies pregnancy as a ‘pre-existing’ condition. This is a common exclusion, so if you plan on travelling while pregnant, ensure that you take the rightful measures.

EXTREME SPORTS

An adventurous spirit could take you during your travels and you may participate in extreme sports such as bungee jumping. But do note that any injury you sustain in such sports may not be covered under your travel policy. Injuries from parasailing, mountain climbing, bungee jumping, and paragliding are typical exclusions.

MENTAL HEALTH

Mental illnesses, emotional breakdowns, and emergencies that result from self-inflicted wounds are not covered under any travel insurance policy. If one has a mental problem that leads to a medical treatment during travel, the person is liable to manage the expenses on their own. People who cancel a trip due to psychological illness may be penalised in the pocketbook.

PROTESTS

Although terrorism is covered by most policies, war or civil unrest are common policy exclusions. In such circumstances, you may have to cancel your trip or quickly modify plans. But any charges subsequent to these changes, such as air fare or hotel rent are not covered under the travel policy.

LOSS OF ITEMS

If, during the period of insurance, your baggage, personal documents and/or personal effects that have been checked in on the same airline you are using, are damaged or lost, then the company will reimburse the cost of replacement of the articles. This reimbursement will be done for any amount up to the total sum stated in the policy schedule.

The deductibles, if applicable, shall be reduced from the compensation payable. Personal documents here mean your identity card, ration card, voter identity card, passport, driving licence and car licence.

CANCELLED TOURS

Insurance policy covers cancellation of a trip if you cancel it yourself.

While you most likely will receive a refund from the company itself, other expenditures on your part, such as air fare or hotel accommodations, are common exclusions from the insurance policy.

In the end, your desire to travel without worries is what effective travel insurance aims at achieving.

(The author is Head - Strategy Planning, HR & Marketing, HDFC ERGO)