Neglecting travel insurance can cost business travellers dearly, here's why

Senior executives at MNCs or officials with companies abroad, have to often travel overseas for quarterly and annual meetings. Their schedule can often involve frequent travel for meeting new and potential clients.

In this backdrop, it is essential for companies to incorporate a comprehensive travel policy and avoid exuberant costs each time a senior executive travels. This policy should include travel insurance as it plays a pivotal role in subsiding costs. However, there are many MNCs that overlook travel insurance due to numerous reasons.

"Most of the corporates avail travel insurance for their staff members who travel for business purposes as a policy. About 10% of the business travellers who are individual entrepreneurs may give it a skip due to lack of awareness," said Ravi Menon, Head, Foreign Exchange at Cox & Kings.

Travel insurance is significant given it protects individuals from unforeseen incidents. "While on an outbound tour, the business traveller is particularly exposed to various risks. Travel insurance helps the business traveller with the several key covers," he added.

Here are 3 important factors that travel insurance can take care of:

1. Cashless Hospitalization: While on tour, especially on foreign land, in case of illness, a traveller can seek cashless services without worrying. Most hospitals in Europe, the US, Canada, Far East and Middle East have hospitals that offer cashless services.
2. In case of death: In the unfortunate eventuality of death on foreign land, the entire cost of carrying the mortal remains is borne by the insurer. Having travel insurance eases the entire process and reduces pressure on the family members back home.
3. Natural calamity: In case of a natural calamity, or if a traveller has missed an onward flight due to delays, the connecting flight is covered.

There are a number of private insurers who offer comprehensive covers, but one must remember not to seek an insurance plan by cutting corners on commercials and ensure that the policy holds a seamless claim process.