What it is
Travel insurance gives you financial protection while you are travelling. According to the insurance regulator IRDAI’s policyholder guidance, it can protect you, your family or both against several travel-related problems.
These include accidents during travel, unexpected medical expenses, losses such as baggage or a passport, and disruptions such as flight interruptions, delays or late arrival of baggage.
Insurers may sell the product under different names, so the label on the brochure is not a reliable guide to what you are getting.
How it works
A travel policy is generally a package policy. That means one policy bundles several separate covers, for example hospitalisation, personal accident, loss or damage to baggage and loss of passport. Each cover has its own terms.
Cover normally applies only for a specific period of travel, not all year. Some insurers do offer other combinations, such as a special policy for corporate frequent travellers.
Policies also differ on where they apply. Some cover domestic travel, some overseas travel and some both. IRDAI says it is important to check which one your policy is.
What to check before you buy
- Whether the policy covers domestic trips, overseas trips or both.
- Exactly which covers are included in the package, such as medical, baggage, passport and delays.
- The period of travel the policy covers.
- The full terms and conditions, which IRDAI says you should read thoroughly.
IRDAI also advises asking the insurer, agent or broker questions until your doubts are cleared.
What it means for you
Because the package has several covers, the claim process is not the same for all of them. IRDAI says the procedure and documents required vary from cover to cover, and all of them are set out in your policy document.
In practice, that means a baggage claim and a hospital claim may need different paperwork. The regulator stresses that you should familiarise yourself with these procedures and documents before you travel, not after something goes wrong.
If you are sending money abroad for a trip or converting currency for expenses, you can use the Currency Converter to get a sense of costs.
Common mistakes to avoid
- Assuming a domestic policy works overseas, or the reverse, without checking.
- Not reading which events are covered and which are not.
- Ignoring the claim steps in the policy document until a loss happens.
- Leaving questions unasked instead of clarifying them with the insurer, agent or broker.
