Claiming on your travel insurance

Saji GeorgePolicyLitmusA holiday or a business engagement trip usually starts by travelling to another place. It can be within our own country or to another one. Modern travel can be extremely stressful and our journeys can be plagued by delays and sickness and lost luggage and countless other hassles. Travel to a foreign country can introduce additional complications. A foreign country is not designed to make you comfortable; it is designed for the comfort of its own citizens. Language, customs, lifestyles and exchange rates can vary widely from your own. The only thing worse than being stranded or sick, is being stranded or sick in a foreign country. This is where travel insurance comes in. For a fairly small premium, a lot of the headaches associated with modern means of travel and staying in another city are taken care of.What Does Travel Insurance Cover: While individual insurers have different products, most travel insurance policies are designed using the following parameters:•Duration of the Policy: This will determine the period for which cover is being sought.•Single Trip/Multi Trip: Is the insurance required for one trip or will there be more than one trip within the duration of the policy?•Individual/Family: This will determine the number of people who will be part of the policy.•Coverage of Territory: This will determine the territory where coverage is required.Use the 4 points above to determine your need. Within the limits specified, a travel policy will usually cover medical expenses incurred while on travel and during the duration of the policy. Different companies will usually add on several other features like emergency medical evacuation to India, repatriation of remains and funeral expenses, accidental death or disability benefit, losses due to flight delays or loss of documents or baggage loss and so on. Amounts and limits are outlined in the policy document and it does make sense to read it.What Does Travel Insurance NOT Cover: The length and details of the fine print on the exclusions in any policy will defeat most of us. There are some general rules though. In addition to the usual exclusions for fraud and pre-existing illnesses, most policies will exclude any losses that arise out of your breaking a law or if such losses have been caused by reckless behaviour or by not following government regulations. Losses caused due to war and terrorism may also be excluded. In addition, different companies will have different exclusions, like expenses on cosmetic surgery or expenses arising out of committing suicide. Making a Claim is Easy: Most companies do make it easy for the customer to make a claim with toll free numbers for use in India and outside India. Companies also partner with external entities that provide support to policyholders. Certain companies also offer the facility of cashless hospitalisation as well. Yet, as is common with all insurance contracts please remember that:•The ability to avail cashless facilities is inversely proportional to the popularity of the country with travelers. The chances of finding cashless service diminish if the country is infrequently visited by travelers•Not all benefits may be “cashless”•Indian Insurers will have tied up with either one or two international service providers; it is important to have the ability to contact them•As a general rule OPD payments will usually be pay and recoverThat being said, thereafter, whether the claim is paid or not depends on many factors. The four main reasons for non-payment of claims are:•Fraud by policyholder: Well, this one should not get paid anyway.•Condition not covered: Its hopefully obvious that if a claim is made for a loss that is not covered by the policy terms, no claim will be paid•Inadequate documentation: All companies have extremely onerous documentation requirements. This is where most policyholders get lost. They have probably left the location, and have limited access to further paperwork. The insurance company on the other hand will have its own list and is usually inflexible. Try and get a list in advance: it’s usually available on the insurance company website.•Insurer Inefficiency: This is another reason why policyholders do not get paid. Inefficiency in company processes and lack of redressal mechanisms also cause distress to claimants.Approaching an ombudsman or the regulator can address the last two issues. However there is no real substitute for reading the terms and conditions of the policy document.Buy Peace of Mind: Travel insurance buys you peace of mind and protects you against expenses that can blow a big hole in your finances and chances are that it will surely ruin your trip as well. It is pretty easy to buy travel insurance. Various providers and aggregators offer products online. Choose the one that is right for you after taking into account your circumstances. The most commonly purchased policies are holiday travel insurance. There are special policies for students, dependent parents and other special interest groups like professional sportsmen. It is important that the right kind of policy is purchased, which includes the features you are looking for. While price is an important consideration, the claims payment record and customer satisfaction efficiency of the insurer is also an important factor in deciding the right policy to buy.