Travel insurance can cover a lot more than lost luggage

Think travel insurance and the thought of lost baggage invariably follows next. In 2018, airports across the globe handled more than 4.65 billion bags[1], according to SITA. Thanks to advances in tracking technology, baggage loss rates have dropped by more than 70%[2]since 2007.Interestingly, travellers are becoming wary of credit card fraud, medical emergencies and incidents involving physical harm, while travelling both domestically and internationally. Buying travel insurance can help you hedge against these risks and ensure a more relaxed and enjoyable trip. Here’s why travel insurance is a good bet for the traveller of today.

1. Aid during a medical emergency When you travel to a new place, there are chances of you getting ill. The average cost of a hospital stay in metros of India can run into several lakhs of rupees. If you’re an international traveller, the added costs of post-hospitalization recovery and medication can be expensive.However, with travel insurance, your hospital bills can be covered by the insurance company, insulating you from the financial impact of expensive medical care.
2. Expenses for compassionate visit If you face a medical emergency while abroad or even otherwise, your family will want to be by your side. Whether you’re a student or business traveller, unfortunate accidents may occur at any time. With travel insurance, the cost of travel for immediate family members is borne by the insurer.
3. Accidental death or injury It’s a fact that physical injuries during travel are fairly common. Accidents such as air crashes and car collisions may cause death or disability.Travel insurance cushions you from the financial implications arising out of such mishaps. In the event of death, the beneficiary named by the insured receives the sum assured as mentioned in the policy.
4. Bail bond If you’re implicated in a law and order situation especially while travelling abroad, you would have recourse to legal help. Travel insurance can also help you cover the costs of bail.For example, in the past students who had applied to a fraudulent US university faced arrest and deportation by the authorities. Many did not have enough resources to post bail or seek legal assistance. With travel insurance, the situation would have been different.
5. Sponsor protection If you’re attending university or a seminar on foreign shores, chances are that it is sponsored by family. This also applies to scholarships and international exchange programs. As the name suggests, a sponsor is someone who takes responsibility for your travel and related expenses.

On account of the sponsor’s death or withdrawal of scholarship, your insurance company can provide compensation to deal with the matter.Thus, travel insurance is an absolute must during any trip as it provides coverage for a range of things apart from covering just the losses for lost luggage.

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.