Travel Insurance Cover



Most overseas Indian travellers tend to spend as little as possible when it comes to travel insurance. This is despite a higher awareness of the need for this cover among them, a survey report released by ICICI Lombard ahead of World Tourism Day on September 27, has found.

Though 93% of the respondents said they were aware of travel insurance and 80% considered it essential, only 38% had actually purchased it. Moreover, one buys it primarily to cover travel to the US and Europe and ignore it when the destination is an Asian country.

The survey polled 1,063 respondents spread across Mumbai, Kolkata, Hyderabad, Ahmedabad and Chandigarh in September 2014. According to respondents who purchased travel insurance, concerns over medical exigencies (82%) and baggage loss (69%) topped the list of reasons for buying the cover.

"Among those who did not purchase an overseas travel insurance policy, an alarming 50% felt that purchasing the same is unnecessary if one already has some other insurance policy ," the study states. Many people assume that their domestic health insurance policy will extend cover overseas too. However, regular health covers are not valid abroad and travel insurance is required to cover medical expenses outside India. Medical expenses account for 95% of the company's claims.

There is no dispute that travel cover is indispensable during an overseas trip, but buying it alone won't take care of your troubles abroad. You should read the terms and conditions closely to avoid disputes later. The most common causes of dispute arise out of clauses like pre-existing diseases, co-pay , sub-limits, exclusions and documentary proofs needed to support claims.

Most travel policies do not pay for hospitalisation due to pre-existing diseases. Similarly , there are sub-limits on individual expense heads like loss of hand baggage and deductibles, where you will have to pay say the first $100 of expenses incurred before the insurer foots the balance bill. Not understanding these nitty-gritties could result in heartburn.

There also have been examples of travellers not seeking support from the worldwide assistance company while in need or failing to register a claim with the assistance company ahead of hospitalisation. Incomplete documents while filing claims is another common mistake that could lead to delays during settlement. A few of them extend their stay beyond the policy period and thus expose themselves to undue risks.

Understanding your rights and clauses and following all procedures while filing the claim will also help in making a watertight case if the insurer rejects your claim.