What is travel insurance?Travel insurance can safeguard you against damages and financial losses that may arise while you are travelling. Some of the more crucial eventualities that are generally covered by insurers include expenses resulting from medical emergencies, cancellation or delays of flights, loss/theft of baggage, passport and other valuable belongings.
How to buy travel insurance?Leading general insurance companies in India offer travel insurance policies of different types. You may either approach your insurance agent or go online to select a policy that will best serve your needs. You should also consider comparing various plans, their respective coverage and the premiums they attach in order to make an informed purchase.
How is travel insurance premium calculated?The premium for travel insurance policy is calculated after taking into consideration a number of factors. Some of the more important ones have been stated below:
- Insurance company, type of policy and coverage While insurance premium differs across insurers, it also depends upon the extent of coverage under a specific policy and certain particulars of the insured. For instance, a single-trip travel insurance policy is likely to attach higher premiums as compared to a multi-trip policy.
- Sum insured It refers to the maximum amount of coverage offered by your policy. Higher the sum insured, higher would be the premium and vice-versa.
- Period of travel Travel insurance premium depends on the number of days for which the insurance cover would be needed. Longer travel duration would generally mean higher premiums, and vice-versa.
- Add-ons to the policy Generally, coverage under a travel insurance policy is standard i.e., it covers basic expenses such as the ones resulting from medical emergencies, loss of baggage, passport and other valuables.
However, should you need additional cover for some specific highlights of your travel – add-on medical insurance cover for an adventure sports vacation, insurance for expensive relics that you plan to buy, or protection for important documents, for that matter – you would have to buy it at a nominally higher premium.
- Destination Travel insurance premium also depends on the destination. In certain countries such as US and Canada, medical treatment is very expensive, prompting insurance companies to up their quotes for the insurance premiums. Similarly, if you are travelling to an area that is often stricken with natural disasters or perennially embroiled in conflict, chances are your insurer would set a higher premium.
Almost all the insurance companies provide an online travel insurance premium calculator on their website. After you fill in the particulars of your travel and your insurance requirements, the tool will generate a figure – one that is a close approximation of the actual premium. This will help you in selecting the best policy to secure your travel plans.
Click here to know more about travel insurance.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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