News reports suggest that this holiday season Indians will fly to foreign destinations in even greater numbers than last year. Before doing so, they must take out comprehensive travel insurance with an appropriate sum insured.
What is covered?
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Travel insurance provides coverage for medical and non-medical problems abroad. “On the medical side, these policies typically cover expenses arising from hospitalization, outpatient department (OPD) treatment, post-hospitalization expenses, etc.,” says Amrish Dubey, vice president, travel insurance, TATA AIG. General Insurance.
According to Parthanil Ghosh, Director and Chief Business Officer, HDFC ERGO General Insurance, “Some insurers offer cash hospital subsidy to cover non-medical expenses.”
Non-medical coverage includes trip cancellations, restrictions, flight delays, missed connections, and loss of checked luggage, passports, and other important documents.
Exclusions that you should take into account
Travel insurance policies come with several exclusions. “Pre-existing medical conditions are generally excluded unless the policy explicitly covers them. Routine physical examinations or other medical assessments are not included without apparent signs of deteriorating health,” says Aashish Sethi, head, health and travel SBU (strategic business unit), Bajaj Allianz General Insurance.
It adds that losses or theft that are not reported to police within 24 hours may not be eligible for claims, and documents such as passports or licenses detained by authorities are also not covered.
“Health conditions arising from substance use and accidents caused by drunk driving are not covered,” says Meet Kapadia, head of travel insurance at Policybazaar.com.
Dubey says each insurer has its own set of exclusions for each product, so it is advisable to review the terms and conditions in detail before choosing a policy.
What is the correct sum insured?
The sum insured should depend on factors such as the destination, length of stay, age of the traveler and the planned activities. “Evaluate the medical costs in the destination country and choose coverage accordingly,” says Ghosh. Travelers to high-cost medical destinations like the US and Canada should opt for higher coverage.
Those with pre-existing conditions, seniors, and those traveling to multiple locations should also consider broader coverages.
Will PEDs be covered?
Most insurers cover pre-existing diseases (PEDs) only for life-threatening conditions. “This is default coverage on all travel policies limited up to $3,000. It covers treatment until the insured is medically stabilized,” says Sethi.
Today, there are supplemental coverages available for PED-related emergency medical situations that offer coverage up to the specified policy limit.
Are adventure sports covered?
According to Kapadia, while some insurers cover adventure sports by default, others offer them as an add-on with an additional premium.
“Opting for this additional coverage typically increases the premium by 10 to 30 percent, depending on the insurer and the specific activities covered,” Sethi says.
Key points to consider
Travel insurance, with a minimum medical and evacuation coverage of 30,000 euros, is mandatory to obtain a visa for the Schengen countries.
Check that your policy covers all planned destinations. “Not all travel insurance policies cover all destinations,” says Ghosh.
Also, review the hospital network and availability of cashless services at your travel destination. Compare policies for coverage and premium, and consider the insurer’s claim payout ratio.
Finally, make an appropriate declaration regarding any medical conditions, including surgery or ailments diagnosed within the last 48 months to avoid claim rejection.
First published: October 14, 2024 | 20:10 IS
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