Here's how travel insurance can be your true friend abroad

Tarun Mathur

Picture this: It’s a beautiful day and you are taking a stroll through the Champs-Élysées in Paris admiring the beautiful cafes, the high-street shops tucked away in corners and the lovely weather in the city of lights. And something as random and common as a mugging on the street robs you of your passport, your foreign exchange, your mobile phone, your confidence, and spoils your perfectly planned holiday. You don’t have any money available on you in this moment to even bring you back to your hotel, and in a foreign land, you may not find a Good Samaritan to come to your aid. You may not even know who else to call for some emergency cash. Not only that, you also now need to get new identity papers for yourself and quickly, else you risk having to reschedule your flights.

The nature of the travel insurance product is such that it is designed to cater to the needs of all types of travellers.

Each of these setbacks carries with it a significant financial cost, all the more so since these costs are incurred in a foreign land. And when you travel with family, friends, or colleagues, each of these costs is multiplied many times over, along with the mental unease and stress of putting loved ones in harm’s way. It is exactly such circumstances that travel insurance policies are designed to insure you against, and having a good international travel insurance policy in your kitty goes a long way in helping you face whatever unexpected situations may present them your international travel. Such policies can cost as little as 3% of the total cost of your travel plans, while providing insurance against emergency medical and accidental expenses incurred abroad, trip delay or curtailment, baggage delay and loss, passport loss, among a host of other benefits. A customised travel insurance policy, for your needs, is essential when travelling abroad, especially when travelling on a tight budget, as financial insurance for your budget to help cover emergency expenses. Whether traveling with friends, family, alone, or whether you are going abroad for a short or long duration of time, a travel insurance product exists that can protect you from the financial impact of the volatilities of the world. We examine here a few scenarios where your travel insurance can kick in and help ease the pressure of emergency financial burdens on a holiday abroad.

Scenario 1 – Medical expenses incurred abroad due to an illness or accident
Medical emergencies can come calling at any time and prove to be a traumatic experience for all of us, not to mention the financial burden that a sudden illness or accident abroad can result in. When things go bad, and medical expenses are incurred, whether they be for inpatient or outpatient expenses, such expenses usually end up costing a tremendous amount in Indian currency, and an average Rs 2,60,000 per inpatient admission. Popular tourist and business destinations abroad such as the US, UK, Australia, Germany provide some of the finest medical care in the world, but also have very high costs for diagnostic tests and medical or surgical procedures. A simple test such as an x-ray for a finger can end up costing no less than $100 in the US, with instances of customers paying as much as $1,000 for an x-ray. Both inpatient and outpatient consultations are expensive. Every form of interaction with the healthcare sector proves to be an expensive drain on your wallet. The total cost of a sprain to a foot, including a 10-minute consultation, diagnostics, and medicines can range from $500 to $2,500. A single visit to the emergency room in the US can add $1,000 to a medical bill. In addition, most Indian health insurance policies do not cover expenses incurred abroad, or have very different, lengthier, or more complicated claims procedures when claims incurred abroad are accepted. It is here that your travel insurance policy for your overseas travel will play a crucial role and help you cover your consultation expenses, diagnostics, ambulance cost, evacuation charges, provide a daily allowance, pay for a visit by a family member or a relative while you are admitted, while also extending cashless services to you. In addition to such regular benefits, some insurers also offer coverage for emergency dental expenses borne abroad, so that a simple toothache does not ruin a holiday. Finally, in order to encourage passengers with pre-existing diseases to travel abroad freely, some insurers also offer coverage of medical expenses related to pre-existing diseases.

Scenario 2 – Loss of passport
Losing your passport on a vacation abroad can spell doom for the well-deserved holiday you have undertaken, and require additional expenses on reissuing emergency travel identity papers that are expensive, and rescheduling tickets for upcoming travel. In such a scenario, you can contact your insurer’s help desk for assistance on how to file a police complaint, where the nearest police station might be, where your local Indian embassy might be, and getting your emergency travel documents issued. You can also file for a claim to cover some of the costs that this process can result in. Many travel insurers also cover the cost of unused travel arrangement and additional transportation cost in this scenario.

Scenario 3 – Loss/delay of baggage
Passengers traveling on complex itineraries, to multiple destinations with connecting flights are at a significantly elevated risk of facing lost or delayed baggage. Tracking misplaced baggage and rerouting it to the appropriate destination often takes time. If you ever find yourself in such a precarious situation, your travel insurance cover will come to your rescue and pay you pre-approved sums to help you cover the cost of essentials purchased while your bags are delayed, or cover the cost of replacement essential items if your checked-in baggage is lost.

Scenario 4 – Trip cancellation or delay
Last minute illnesses, bad weather, personal emergencies, the untimely demise of a dear one, and loss or misplacement of the passport are a few scenarios when you might have to delay or cancel your trip at the last moment. In addition to the additional expenses that such a delay or cancellation might result in, such as the cost of booking last minute accommodation, food and beverages, and the cost of replacement flight tickets, your last minute cancellations of flight tickets and hotel bookings are usually not refundable, thus adding to the considerable financial expense that a trip cancellation or delay can result in. A standalone travel insurance plan has the provision of monetary compensation in the case of such scenarios. Your travel cover will also come in handy in case of trip cancellation owing to a terror attack or natural causes.

ConclusionIt is essential that you invest the necessary time to buy a customised standalone travel cover for catering to unforeseen eventualities and for ensuring that you are buying a policy tailored to your needs. Spending the few minutes necessary to purchase a travel insurance policy helps insure you against devastating financial costs. Insurers also usually have a 24*7 helpdesk to provide information and extend help to you in all possible scenarios and at all times, especially through moments that require their presence in your life the most.

The writer is Chief Business Officer- General Insurance at Policybazaar.com