Travel Insurance A36

Travel Insurance 1
Introduction
Travel insurance is insurance that is intended to cover medical expenses, trip cancellation, lost luggage, flight
accident and other losses incurred while traveling, either internationally or domestically.
Travel insurance can usually be arranged at the time of the booking of a trip to cover exactly the duration of that
trip, or a "multi-trip" policy can cover an unlimited number of trips within a set time frame. Some policies offer
lower and higher medical-expense options; the higher ones are chiefly for countries that have high medical
costs, such as the United States.
Some credit card issuers offer automatic travel insurance if travel arrangements are paid for using their credit
cards, but these policies are generic and particular care must be taken to take into account personal
requirements. There are many travel insurance policies available in the market place, but care must be taken of
what events are covered by each policy, and what exclusions, exceptions and limits apply, besides other issues.
Travel insurance is a type of insurance that covers the costs and losses associated with traveling. It is useful
protection for those traveling domestically or abroad.
Many companies selling tickets or travel packages, give consumers the option to purchase travel insurance, also
known as travelers insurance. Some travel policies cover damage to personal property, rented equipment, such
as rental cars, or even the cost of paying a ransom. Frequently sold as a package, travel insurance may
include several types of coverage. The main categories of travel insurance include trip cancellation or
interruption coverage, baggage and personal effects coverage, medical expense coverage, and accidental death
or flight accident coverage.
Coverage often includes 24/7 emergency services, such as replacing lost passports, cash wire assistance, and re-
booking canceled flights. Also, some travel insurance policies may duplicate existing coverage from other
providers or give protection for costs that are refundable by other means.
Travelling interstate, overseas or to another city for personal or business reasons involves planning, expense
and unfortunately, some risk too. Some of these risks could include the financial losses you experience due to
travel changes, cancellation or interruption, medical expenses, baggage damage or theft, and more.
A travel insurance policy can provide you with cover you may need for financial losses caused by a wide range
of events that can affect your trip, whether they occur before, during or even after your trip. Travel insurance
should be a priority in all travel arrangements, whether you travel regularly, occasionally or you are setting off
on once-in-a-lifetime trip. Some holidays, such as ski trips or voyages on cruise ships, may require special
policies.
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When you’re travelling overseas, the Government advises that travel insurance is as important as a passport,
regardless of your destination.
It’s important to remember to purchase a travel insurance policy as soon as you have paid for your trip. That
way you may be covered for unused travel and accommodation expenses if you need to cancel your trip due to
an event covered by your travel insurance policy, such as illness or a natural disaster.
Travel insurers offer a variety of policies that include cover for individuals, families and couples, and some also
offer multi-trip and annual policies for frequent travelers.
Domestic travel insurance: A domestic travel insurance policy can provide you with cover for delays,
cancellations, loss of or damage to luggage and personal effects, and personal liability. It may also provide
cover for the rental vehicle insurance excess paid for unexpected scrapes in rental cars and emergency
accommodation.
It’s important to check the details of your travel insurance policy to ensure you have the right cover for your
travel plans. Some activities, such as adventure sports, pre-existing medical or mental health conditions, may
be excluded or require payment of an additional premium.
People usually associate travel insurance with international trips. However, domestic travel insurance is as
much important, if not more. Risks associated with travel, more or less remain the same whether it is an
international trip or a domestic one. Yes, the expenses can be massive in case of an international trip. However,
expenses are still expenses when incurred in national currency. Therefore, one must research and purchase an
ideal domestic travel insurance policy to travel worry-free within India.
Coverage and benefits of domestic travel insurance in India.
 Medical expenses
Falling ill during a trip can be disastrous. Not only does your trip gets spoilt but you have to spend money for
treating your illness, something that wasn’t a part of your plan. Domestic travel insurance in India covers such
medical expenses so that you do not have to face financial losses.
 Baggage Loss
Whether you travel light or with lots of suitcases, loss of such baggage can prove to be a major impediment in
your journey. Not only is there a loss of baggage but also of time and effort in managing your trip without the
baggage. Domestic travel insurance in India covers you for loss of baggage due to theft or otherwise.
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 Personal Accident Cover
Accidents can happen anywhere, anytime, and with anyone. Therefore, travel insurance covers travelers against
injuries faced during their insured trip. Accidental death and disability are also covered.
 Flight Delay
There can be numerous reasons for a delay in your flight. It can be traumatic to miss a connecting flight. Travel
insurance provides a cover against such risks.
 Personal Liability
There is a chance that your actions while on a trip can cause damage to other person or their property. In such
cases, you will be held liable to compensate them for the losses suffered. A travel insurance policy can come in
handy here as well.
 Emergency Cash
No matter how digital-savvy one becomes, sometimes the need for cash can’t be overlooked. Travel insurance
companies know the importance of cash and make it available during difficult situations.
 Eligibility Criteria
You can avail domestic travel insurance if you are in the age group of 18 to 65 and are travelling in India via
roadways, airways, or railways. Your destination also plays a crucial role in deciding the insurance cover. Your
insurance company might also want to know the duration of your trip, your health condition, and other such
details.
Exclusions of a Domestic Travel Insurance Policy:
Along with knowing the coverage, you should also educate yourself about the exclusions of a domestic travel
insurance policy. Knowing about the exclusions helps to make an informed choice and raise claims in an
appropriate manner. Here is a list of exclusions followed by most of the insurance providers:
 Expenses that are non-medical are not covered

 If doctor’s advice is not followed and the patient is traveling despite doctor’s order of not doing so
 In case the accident was caused under the influence of intoxicants such as alcohol, drugs, etc.
 If the injury has incurred because of self-harm
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 If the insured person got injured while involved in an illegal activity

 Losses due to civil war or war-like situations shall not be covered
 Injuries sustained due to involvement in activities such as adventure sports might not be covered
Travel Insurance Online in India
Nowadays, it has become simple to insure your trip online. You can purchase travel insurance online in India
from your mobile phone as well, if you have an active internet connection. You just have to visit your preferred
insurance provider’s website, provide necessary details, select a plan, make the payment, and receive the policy
in your inbox. If you need to submit certain reports or the insurer needs you to undergo some health-related
tests, the same shall be communicated to you and the process shall be completed swiftly.
Travel insurance is like a seat belt, especially when you travel abroad. Just as a plane’s seat belt is a
precautionary measure during turbulence, travel insurance is a precautionary measure during your entire trip.
Unknown locations can throw up unexpected challenges and travel insurance will help you overcome some of
those without increasing your blood pressure.
Understanding Travel Insurance
Travel insurance protects you financially in case things do not happen as planned when you are on a trip. For
example, you can lose your baggage while going abroad. Travel insurance will help you to minimize the impact
of such a financial blow. Your domestic or international trip will be insured based upon the type of insurance
plan you choose.
Mostly, people go for travel insurance in order to insure risks such as lost baggage, loss of passport, flight
delay, emergency hospitalization expenses, etc. You can opt for a single trip, multi-trip, senior citizen plan, or a
student-friendly plan.
Why Should You Purchase A Travel Insurance Policy?
The prime reason to purchase a travel insurance policy is to be stress free. Be it an office trip or a vacation, you
are exposed to certain risks while travelling. With travel insurance by your side, you can rest assured that even
if there is a problem, you will have support in the form of insurance.
Environmental and political conditions are different in different countries. Situation can change drastically and
you can get caught in the mix for no fault of yours. In such situations, travel insurance ensures that you do not
suffer financial losses due to an extended stay or missed flights. Health hazards can be detrimental to your trip.
The cost of treatment in foreign countries is extremely high. If one doesn’t have insurance in such a case, it can
be financially draining.
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Some countries have made it mandatory for tourists to purchase a travel insurance plan before visiting their
land. This fact emphasis the importance of travel insurance like no other. However, it is not just a box that
needs to be ticked while you are about to visit abroad. You need to understand your travel itinerary, look at the
risks you might be exposed to, and choose an appropriate plan to cover those situations.
Things To Keep In Mind While Purchasing Travel Insurance
 Purchase your travel insurance plan keeping in mind your destination.

 Select the type of plan based on the number of days you are going to stay.
 Your purpose of visit can also play a role in selecting the type of policy. Example, Student Insurance
Plan for youngsters venturing outside India for studies.
 Think of what you are supposed to do during your visit. Is it an adventurous trip or one where you are
just going to relax on the beach?
 Is your house going to be vacant while you are abroad? Consider if you want to get an Add-on insurance
cover to insure your property while you are in a different country.
 Do you have an existing medical condition? Discuss it with your insurance company, you might be
required to undergo a health check-up.
 Once you understand your requirements, research online, choose your insurance provider and the select
right insurance plan.
A Guide to Travel Insurance for Students Planning to Study Abroad
If you are a parent, then you know the pain of staying miles away from your child. Your child might have the
most luxurious room ever but the fact that you are continents away from your ward can make you anxious.
However, after the initial emotional burst, one thinks rationally and looks at things practically.
Sending your child to study overseas is a move in the right direction and you and the child have to deal with the
‘side effects’ of a foreign stay. In such a case, an extensive student travel insurance policy can help to reduce the
anxiety levels and manage the financial setbacks associated with the student’s travel-related issues in a foreign
land. Read ahead to know more about student travel insurance and understand it in a better manner so that you
can make an informed decision for your child.
What is International Travel Insurance for students?
Just as you can avail a travel insurance policy for your foreign trip, an international travel insurance policy for
students is a dedicated plan for Indian students travelling abroad for studies. Unlike a trip insurance plan,
international travel insurance for students is a long-term policy that lasts for a year or two depending on the
course for which the student is travelling to a foreign land.
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Importance of Overseas Travel Insurance for students
Overseas Travel Insurance for students results in peace of mind for the students in an unknown land and for the
parents in India. An extensive policy acts as a financial cushion in case things go wrong with respect to travel-
related issues including health hazards.
Sending a child for overseas studies can take a toll on the finances of the family. In such a scenario, if the child
falls ill or is involved in an accident and needs urgent medical care, the expenses associated with such medical
treatment can be massive. However, with a comprehensive student travel insurance plan in place, one need not
worry about medical expenses as the insurance company provides the necessary financial support.
Some foreign universities have strict rules regarding student travel insurance. Some even stipulate the kind of
policy that is required. A student might not be accepted by the university if the travel insurance guidelines are
not met. Thus, it is wise to know the university’s requirements regarding insurance coverage and purchase the
policy accordingly.
Common Coverage of a Student Travel Insurance Policy
Here’s a list of common coverages under a student travel policy purchased in India:
 Cost of medical treatment of illness, injury, etc.

 Medical evacuation
 Cost of providing a duplicate passport in case of original document
 Loss of baggage while traveling
 Cost of sending someone from India to the foreign country in case student needs support while
facing medical issues.
 Reimbursement of course fee in case of study disruption due to medical issues
 Personal liability
Common Exclusions of a Student Travel Insurance Policy
Here’s a list of common exclusions under a student travel policy purchased in India:
 Non-declared pre-existing diseases

 Self-inflicted injuries
 Intoxication-related issues
 HIV/AIDS
 War/ Nuclear issues
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How to Purchase Student Travel Insurance Policy?
The ideal way to purchase a student travel insurance policy is to do it online. Make sure to compare the
coverage and the premium of different options available before purchasing a policy. You no longer have to
depend on offline methods of purchasing travel insurance like visiting a travel company’s branch or relying on
an agent. Online travel insurance is simple and quick. It is like any other e-commerce transaction. In most
cases, the student travel insurance policy can be downloaded instantly once your payment is processed.
Travel Insurance Tips for Solo Women Travelers
When a woman sets out on a trip alone, there is a lot of skepticism involved. This could mean a red flag from
family members, friends or the woman herself. Safety is the top concern. If the destination is considerably “safe
for women,” the next cause of concern is how will she manage everything on her own?
If you are a woman with a recently unleashed passion for traveling, your entire solo trip can become a fulfilling
experience. Here if you think about everyone other than your sheer enjoyment, you could lose out on what
could be your happiest moments in life. If you have overcome your inhibitions, read on to find some useful tips
that will help you while traveling alone.
International travel insurance
There is a lot to consider when travelling overseas. Travelers need to be wary of potential language barriers,
different systems and laws, cultural nuances and the impact of unexpected delays and access to local health
services if things happen to go wrong. Simple incidents that you may be able to easily manage in Australia can
quickly become expensive and difficult to negotiate when you are in another country.
Most international travel insurance policies include a fixed amount of cover for overseas medical and dental
expenses, lost or stolen luggage, liability cover, accidental death or disability, and expenses if you incur a
financial loss due to delays, cancellations or rescheduled arrangements. Some travel insurance policies offer
additional services, such as 24-hour medical emergency translation, which can make a huge difference to the
quality of treatment you get while travelling.
It is important to consider that medical treatment in some countries can be exceptionally expensive and in some
cases you may need to guarantee payment to be admitted to a hospital and receive treatment. When you travel
overseas, you are personally liable for covering your medical costs. The Australian Government does not cover
overseas medical expenses or emergency evacuation home.
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For example, it is not uncommon for a short stay in a US hospital to cost in the tens of thousands of dollars.
According to the Department of Foreign Affairs and Trade (DFAT), the cost of medical evacuations from the
United States regularly range from $75,000 to $95,000 and up to $300,000. DFAT also advises hospital costs in
South East Asia exceed $800 a day and medical evacuations have cost more than $60,000.
Travelers who are not covered by insurance are personally liable for covering the medical and associated costs
they incur overseas
Each year, DFAT helps more than 20,000 Australian travelers in difficulty overseas including assisting with 700
hospital admissions, 600 deaths and 100 evacuations of Australians to another location for medical purposes.
However while DFAT and other Australian Government agencies can help you access overseas services and
treatment, they don’t pay for any of their costs, such as legal fees, emergency flights or medical care.
Passports
Travel insurance will not usually cover the costs associated with a passenger travelling with a damaged
passport. The onus is on the passport holder to ensure their passport is valid and in good condition, allowing it
to be read by passport-reading technology or a customs official. Similarly, costs associated with a passenger
presenting at an airport or dock with an expired passport are unlikely to be insurable.
If a passport is stolen, and a police report is issued, insurers are likely to cover passenger costs incurred while
new travel documents are organised. If a passport is damaged during the trip (such as during a fire or flood at
the passport holders’ accommodation), claims accompanied by a police report will be assessed on a case-by-
case basis.
Of those who took out travel insurance policies on their last trip overseas, more than half (54 per cent) may
have been unknowingly underinsured, having either not declared a pre-existing medical condition and/or
engaging in risky activities without being certain of their coverage.
Credit card travel insurance
Travel insurance provided through a credit card is convenient for many Australians.
However, travellers should do their homework before assuming their credit card travel insurance cover is right
for their individual needs.
In some instances, a stand-alone travel insurance policy may provide better cover, cover existing medical
conditions, or allow (for an additional fee) cover for activities that are not usually included.
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Credit card travel insurance usually requires a purchase on the card to activate the insurance. This can vary
from a portion of the trip being paid on the card, such as accommodation, to the entire trip having to be
purchased on the card.
Each card differs in the cover offered, the exclusions and conditions of use.
Choosing whether to use credit card travel insurance or a stand-alone policy comes down to answering one
question: does the cards travel insurance cover everything you plan to do?
Tips to ensure credit card insurance meets the individual travellers personal needs:
 Card owners should always read their Product Disclosure Statement (PDS) before they travel to ensure
they qualify for complimentary credit card travel insurance benefits, particularly if they are relying on
the cover
 Check how the travel insurance is activated. Credit card travel insurance usually requires a minimum
purchase on the card to activate the insurance. Many have a minimum of $500 to be spent on flights or
accommodation or similar travel costs. Others require the entire trip to be purchased on the card. Many
require a return international ticket to be purchased
 Travel insurance for a family group may require the cardholder to travel with the family for the duration
of the overseas trip. Some policies will cover only the cardholder and not the cardholder’s family.
 Check the level of cover. Each card will have different limits on certain types of claims
 Check the type of cover offered. Will the policy cover cancellations fees, accidental death, lost
luggage/personal belongings or trip interruption?
 Most credit card travel insurance is for international travel, though some may include domestic cover
 Excesses on claims are often higher when compared with stand-alone travel insurance policies
 Check age restrictions. Some credit card policies will not cover travellers over 75 and others exclude
those aged over 80
 Most cards don’t cover pre-existing medical conditions
 Check the duration of trip cover. Some have a maximum of 31 days, some cover for three months,
others offer six months
 Check the cover start date. Does it start from trip purchase date or travel date?
 Check the type of paperwork required for claims, for example police reports or proof of ownership
 If you’re planning to include an adventure sport during your trip, or ride a scooter, moped or
motorcycle, check whether you are covered. These are common travel insurance exclusions
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Choosing a policy
The travel insurance market has a variety of travel insurers with a range of policies that cater to the different
needs of all Australians. It is important to note that each travel insurance policy has specific limits on each of
the included benefits. It’s important to shop around for a travel insurance policy that provides right level of
cover for your individual circumstances and travel plans. The cheapest policy may not best suit your needs.
Read the Policy Document and Product Disclosure Statement (PDS) carefully to make sure that the risks that
are important to you are covered – and that the amount of coverage provided is adequate for you.
When choosing a travel insurance policy you should find out:
 What is included in the policy

 What is excluded, and how this compares with your intended activities
 How to contact your travel insurer when you are overseas
 What paperwork or information you need to take with you
 The dollar limits for claims on individual benefits and as a whole
 The proof you might need if you make a claim
 The cost of the premium
 The amount of excess you would pay on a claim
You should buy a travel insurance policy that provides cover for all the destinations you travel to and for the
full duration of your trip. Inform your travel insurer if you decide to extend your trip to check if you can extend
your current policy or need to purchase another one. Pregnant women can be at additional risk when travelling,
so make sure you’re covered by your policy.
Exclusions :
Along with the various types and limits of cover provided by a travel insurance policy, there may also be
different exclusions, or circumstances under which your policy will not cover you.
Your Product Disclosure Statement (PDS) will list all of the exclusions that apply under your policy. Make sure
you have read and understood the Product Disclosure Statement (PDS) before you buy your policy.
Common exclusions may include, for example:

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 Pre-existing medical or mental health conditions :

The PDS will detail the types of pre-existing medical or mental health conditions that your insurer won’t
cover. However, some travael insurers do automatically provide cover for certain pre-existing medical
or mental health conditions or will provide it at an additional premium, depending on the severity of the
condition. If you are not sure about whether you have a medical or mental health condition that needs to
be declared, you should contact your insurer and discuss it. Not declaring pre-existing conditions to
your travel insurer when purchasing your policy may result in the insurer refusing to pay some or all of
any claim you make later. Travellers with pre-existing conditions are often able to get general travel
insurance, although the insurer may exclude claims that arise from that particular illness or condition.
You can find a list of insurers that provide cover for mental health conditions here:
www.findaninsurer.com.au/category/76173
 Motorcycles, mopeds and scooters :
Most travel insurers will not provide cover for riding a motorcycle or moped while overseas,
particularly if the rider does not hold a full Australian motorcycle licence and is not wearing an
appropriate helmet. Some insurers will cover motorcycles, mopeds or scooters under certain strict
conditions or for an additional premium. Many countries require a local licence to drive or ride a motor
vehicle and an Australian licence may not be sufficient. Even if your policy covers use of a more vehicle
or motorbike, travel insurers are likely to deny a claim if the traveller is unlicenced, does not hold the
required local licence or does not hold the correct class of licence in Australia for the vehicle driven.
 Adventure sports :
Some activities are often excluded from travel insurance policies or may require an additional premium
to be paid. These activities can include snowboarding, skiing, surfing, rock climbing, kite surfing,
hunting, bungee jumping, parachuting, riding motorbikes and scuba diving. If you are planning on
pursuing these types of advenure travel or outdoor activities, you should make sure you purchase a
policy that includes this type of cover.
 Risky behaviour :
It is important to keep in mind that travel insurance policies will often list exclusions such as loss, injury
or damage related to injury under the influence of alcohol or drugs, any self-inflicted injury, the loss or
theft of unattended baggage, and the loss or theft of cash.
 Natural disasters :
Most policies cover reasonable reimbursement for additional travel and accommodation expenses if a
journey is interrupted by a natural disaster. However, most insurers will not cover these claims if the
natural disaster was known about before the policy was purchased.
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 Disease outbreaks :
Many travel insurance policies also have exclusions for claims relating to quarantinable disease
outbreaks, such as swine flu.
 Civil unrest, war and terrorism :
Travel insurance policies will typically not cover claims made in countries where DFAT recommends
against travel because of issues relating to war, terrorism or civil unrest. When preparing your travel
plans and before you leave, you should visit smartraveller.gov.au to familiarise yourself with advice
about the destination to which you intend to travel.
 Personal belongings and luggage :
Cover included in a travel insurance policy for personal belongings and luggage is limited to a specified
amount. Consider a policy with additional cover if you are travelling with expensive items such as
jewellery, laptops or camera equipment.
 Age :
Many travel insurance policies have age limits or restrictions for senior travellers. However, several
travel insurers offer policies specially designed for retirees or senior travellers.
How premiums are calculated :
Travel insurers calculate the cost or premium of a travel insurance policy by considering a number of factors
including, but not limited to:
 The length of your trip

 Age of the traveller(s)
 The travel plan selected
 The type of cover requested
 The region/s in which you will be travelling
 Whether a single-person or multi-person policy is purchased
 Options and extras selected including extra cover for specified items, or cover for an extreme sport such
as skiing
 Any pre-existing medical conditions
A premium is the amount you pay an insurer for insurance cover.
It reflects what the insurer believes is the likelihood you will make a claim. It also includes an insurer’s
business costs, and may also reflect the benefits of any discounts or bonuses the insurer may offer to you.
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The amount you have to pay is shown in the policy schedule, which the insurer will send you when the cover
has been arranged.
The final amount you pay also includes state and territory stamp duties and levies, and the Goods and Services
Tax (GST). These taxes can add a significant amount to the sum the insurer requires you to pay for the policy.
How it works – calculating premiums :
Insurers each make their own commercial decisions when deciding how much to charge each person who wants
to cover certain risks for something valuable to them.
For example, when you apply to insure your car for a comprehensive or a third party property policy the insurer
will decide how much that particular car is worth (market value ) and what risks are worth insuring. The insurer
may also allow you to nominate the insured value of the vehicle.
Insurers refer to data when they make these decisions. If the car is kept in a suburb with higher rates of car
theft, you will be given a higher level of risk (and therefore may pay a higher premium) than someone whose
car is kept in a place where car theft rates are low.
Insurers may also look at other issues such as the driver’s age, their sex and claims history. This is because
some demographics are statistically more likely to make a claim on their policy than others. Yet another factor
that influences risk is the driver’s personal driving record. Most insurers will take into account whether you
have been at fault in other accidents or whether you have been penalised for speeding, drink driving, or other
traffic offences.
All of these factors will help insurers work out an appropriate premium.
Insurers must also decide how much coverage will be offered (unless you nominate a value) and in some
circumstances may not offer insurance if the insurer believes the risk is too high.
However, you must agree to all the terms of the policy when seeking the insurance cover, including the extent
of cover and any terms and conditions, or the insurer will not offer it. You may also have a choice about some
aspects of the policy, such as the amount of excess and optional extras.
Similar principles are used in calculating premiums for all types of insurance.
Why premium prices change

Your premium is likely to change each time you renew your insurance, even if your personal circumstances
don’t appear to have changed.
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This is because premiums are affected by many factors, including the cost of doing business and changes to the
way your risk has been assessed.
Sometimes premium prices will go up across the board, and sometimes your own premium might go up because
your level of risk has increased. But if something helps to reduce the risk, this may be taken into account with a
lower premium.
There are a few different reasons your premium may change, including:
 Inflation. Insurers will often adjust premiums to keep pace with inflation
 Changes in government taxes and any state or territory duties or levies
 A reassessment of your individual risk by your insurer, especially following a claim or a natural disaster,
or fresh information from government or an expert
 Changes you make that reduce your risk, such as installing a home alarm system
 The number of claims experienced in that sector of the insurance industry
 Large-scale claims due to natural disasters such as floods and cyclones
 Investment returns. Insurers invest premiums to help ensure they have sufficient capital to pay future
claims. Poor returns may require a lift in premiums
 Regional or global changes that affect the price and availability of reinsurance
 The value or quantity of what you are insuring may have changed
 The insurer’s cost of doing business
If there has been an unusually high number of claims in the previous year (for example, following a big natural
disaster such as a cyclone, flood or bushfire), some insurers may need to increase premiums to restore the
balance between the pool of funds available to pay claims and the risk.
Your own premium might also go up (or down) because of a change in your risk. For example, if you received a
speeding ticket or caused an accident, your insurance premium may go up at the time of renewing your policy
(you are obliged to inform your insurer of these matters
Receiving a renewal notice of a higher premium might prompt you to go searching for alternative policies
which might offer cheaper premiums.
It is important to shop around to get the best policy for you, particularly if your own circumstances have
changed over the year. It is also worth considering whether there have been any changes in your circumstances
which might let your current insurer charge you a lower premium.
For instance, if you have fitted a car alarm to your car, it is worth checking whether your current insurer offers a
premium discount.
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What may influence your premium?
When your insurer calculates your premium, it is likely to take a range of factors into account. These factors
will change from person to person.
Some key factors influencing your premiums may include:
 Type of cover selected

 Any optional benefits you have selected under your policy
 Discounts you are eligible for
 Previous claims and incident history
 Whether you choose to pay your premium annually, monthly or by instalments
 Government taxes and any state or territory duties or levies
 How much cover you want
 Your risk assessment by the insurer
 The level of excess you select
Balancing premium prices :
Working out the correct price for insurance premiums is a complex process that must balance the availability of
funds, the likelihood of certain claims (the risk) and the ability for the pool of money from all insurance
premiums to cover the cost of claims.
Insurers must rely on claims histories, statistics and probability calculations to plan how much they may have to
pay out. They may also seek specialist help or information on certain risks, such as flood maps or seasonal
weather forecasts.
Paying monthly or annually :
Most insurers offer a discount to customers who pay their annual premium up front, rather than in monthly
instalments, for household and motor vehicle policies.
This is because annual payment has lower administrative costs compared with monthly payments, and insurers
may be able to gain stronger investment returns.
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Though more convenient for many customers, the pricing of monthly payments reflects higher administrative
costs and a slightly higher claims frequency. Some insurers charge a small service fee; others charge a slightly
higher premium.
Under a monthly instalment arrangement, if a claim is lodged at any time during the policy period the
remainder of the annual premium will still need to be paid.
Not all risk is the same
No one can be sure what losses they may suffer – not everyone’s risk will be the same.
An insurer will charge a higher premium when the risk of accident, loss, theft or catastrophe is greater.
Because of this, insurance premiums will vary from person to person because insurers try to make sure that
each policyholder pays a premium that reflects their own particular level of risk.
No two insurers offer the same policy with the same terms and conditions, and this can make comparing
policies very important. Policies and premiums may also differ if insurers are using different information – for
instance, some insurers have enough information to look at and price the risks for an individual address, while
others may rely on data for the whole postcode until better information is available.
When you apply for a policy, the insurer will decide if it will insure your risk, work out how much coverage to
offer you for the items you are insuring and how much you should pay for it.
Premiums go to an insurer's capital base :
Insurers must meet strict regulatory requirements and set aside enough money to meet the prudential capital
requirements so that there’s always enough money to pay many claims at once – such as when a large natural
disaster occurs – as well as the$25 billion-plus typically paid each year for normal claims*.
The prescribed capital requirements (PCR) of insurers amounts to many billions of dollars, which are invested.
These investments are an integral part of the Australian economy, supporting businesses, industries,
infrastructure projects and the financial system.
Most insurers are owned by shareholders (including superannuation funds and investment funds) and the
insurer has an obligation to provide them with a return on their investment.
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Managing premiums :
The large number of competing insurers, and the variations available on general insurance policies (such as
exclusions, inclusions, excesses and premiums), give consumers plenty of choice.
Shopping around to find the policy that best suits your particular circumstances can lead to you finding a
cheaper policy.
However, shopping on price alone may result in a policy that does not meet your specific needs and leaves you
financially exposed to certain risks.
Reducing your level of cover can lower your premium, but it increases your risk of being underinsured.
Tips for managing premiums :
Consider these tips to manage the cost of insurance:
 Increase your excess :

One way to reduce the amount of the premium you pay is to agree to take on a certain proportion of the
risk by increasing your excess. Many insurance policies allow you to specify an excess. In general, a
higher excess will mean you pay a lower premium
 Lower your risk :
Many insurers will offer you a cheaper premium if you take steps to lower your risk. You may receive a
discount on your home and contents policy if you have security devices in place such as window locks
and deadlocked doors. In some circumstances, insurers may not offer you a policy unless you have
taken reasonable steps to lower your risk.
 Talk to your insurer :
Providing additional information to the insurer about your specific risk may also allow your premium to
be reviewed. You can also ask your insurer about how you might be able to lower your premium
 Shop around :
Each insurer will offer products that differ from those offered by other insurers, with variations in
thecoverage, the terms and conditions, exclusions and costs
 Ask if you qualify for any discounts :
Some insurers may offer discounts such as a no claims or multi policy discount if you have two or more
policies with one company
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Below are the plans for Thomas Cook India Ltd regarding the insurance coverages :
(SilverPlus Plan-100k)
Coverages
Sum Insured Deductibles
Medical Expenses (Including Medical Evacuation and
USD 1,00,000 USD 100
Repatriation)
USD 25 per day for max
Daily allowance in case of hospitalization 2 Days
5 days
Dental Treatment USD 500 100
Personal Accident USD 15,000 Nil
Loss of Baggage USD 500 Nil
Delay of checked-in baggage USD 100 12 Hours
Passport Loss USD 250 Nil
Trip cancellation and Interruption USD 1,500 100
Trip Delay USD 200 8 Hours
Missed Connection USD 500 Nil
Financial Emergency Assistance USD 1,000 Nil
Home- Burglary INR 100,000 Nil
Personal Liability USD 100,000 Nil
Hijack Distress Allowance USD 875 Nil
Emergency Hotel Extension USD 3,000 Nil
Compassionate Visit USD 5,000 Nil
The above plan is a silver plan ( budgeted insurance ) taken by the travellers for a safer site and who are
frequent travellers as well. There are various instances where a person can insure himself for. The deductible
portion should also be taken care of since in all the cases claim is not provided on the spot.
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The below is 1 time premium client has to pay in order to undertake the policy mentioned above :
USD $ 100K - EXCLUDING US/CANADA USD $ 100K - World wide

Days 01 to 40 41 to 55 56 to 60 61 to 70 Days 01 to 40 41 to 55 56 to 60 61 to 70
7 723 807 807 1274 7 1008 1153 1164 1800
15 906 1102 1297 2119 15 1263 1446 1628 2902
30 1272 1522 1773 3175 30 1776 2031 2286 4812
45 1907 2084 2148 4603 45 2879 3455 3481 6513
60 2226 2511 2697 4852 60 3636 4135 4633 8085
75 2636 3277 3340 6471 75 4713 5587 6459 9229
90 3150 3999 3988 8845 90 5298 6285 7272 10350
120 4348 5197 5271 12058 120 7228 8874 8961 18595
150 5641 7161 7235 16538 150 9653 12017 12135 27905
180 6930 8567 8632 20202 180 12175 14825 14971 34671
The minimum premium starts from INR 723 and goes upto INR 34671, depending upon the clients need.

01 to 41 to 56 to 61 to 01 to 41 to 56 to 61 to
Days 40 55 60 70 Days 40 55 60 70
7 794 1030 1240 1571 7 1017 1318 1603 1999
15 954 1300 1521 2257 15 1358 1778 2030 3159
30 1390 1800 2081 3544 30 1997 2537 2883 5335
45 2129 2418 2292 5324 45 3150 3679 3988 7683
60 2577 2810 3041 6516 60 3991 5223 5965 10031
75 2986 4214 5096 9797 75 6021 8393 12251 18627
90 3999 5903 7251 14815 90 7308 9769 15207 32722
120 5247 7350 8982 17291 120 8592 12296 23337 52783
150 6368 9697 11660 24134 150 11297 17042 32453 76028
180 8180 11082 13797 29118 180 14539 20415 37049 85309
The above premium is for the gold plan which starts from INR 794/- and goes till INR 85309/-
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(Gold Plan-250k)
Coverages
Medical Expenses (Including Medical Evacuation and
USD 250,000 USD 100
Repatriation)
USD 25 per day for max
Daily allowance in case of hospitalization 2 Days
5 days
Loss of Baggage USD 1,000 Nil
Home- Burglary INR 2,00,000 Nil
The above is a gold plan where sum insured is for USD 2,50,000 for medical expenses and later differs
depending upon the coverages.
In the beow table, the platinum plan is provided where sum insured is for USD 5,00,000 and the premium start
from INR 729 and is upto INR 20809 depending upon the plan selected by the traveller.
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(Platinum Plan-500k)
Coverages
Medical Expenses (Including Medical
USD 5,00,000 USD 100
Evacuation )
Repatriation of Remains USD 7500

NIL
Daily allowance in case of USD 25 per day for max
2 Days
hospitalization 5 days
Dental Treatment USD 500 USD 100
Loss of Baggage USD 1,000 NIL
Passport Loss USD 250 USD 100
Trip cancellation and Interruption USD 2,000 Nil
Home- Burglary INR 200,000 Nil

Days 01 to 40 41 to 55 56 to 60 61 to 70 Days 01 to 40 41 to 55 56 to 60 61 to 70
7 979 1113 1358 2414 7 1226 1464 3659 6338
15 1381 1684 2047 3231 15 1885 2714 6264 8977
30 1673 1957 2544 5182 30 2109 3138 7844 12568
45 2274 2766 3596 7636 45 3305 4609 10383 16296
60 3046 4420 5746 9359 60 4413 7387 12871 20809
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Sum Sum Deductibl
Coverages
Insured Insured es
Medical Expenses (Including Medical USD USD

USD 100
Evacuation and Repatriation) 250000, 5,00,000
USD 25
USD 25 per
per day
Daily allowance in case of hospitalization day for max 2 Days
for max
5 days
5 days
Dental Treatment USD500 USD500 100
USD
15,000
USD
1,500
Delay of checked-in baggage USD 100 USD 200 12 Hours
Passport Loss USD 250 USD 350 Nil
USD
1,500
Trip Delay USD 200 USD 200 8 Hours
Missed Connection USD 500 USD 500 Nil
USD
1,000
INR INR
Home- Burglary Nil
200,000 200,000
USD USD
Personal Liability Nil
200,000 200,000
Hijack Distress Allowance USD 500 USD 500 Nil
USD
3,000
USD
5,000
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The above plan is for Multi purpose wherein the sum insured for Business Trip and the Leisure Trip both is
included together. The plan is for sum insured USD 2,50,000 and USD 5.00.000 as well.
The premiums for the plan are as per below provided in INR and including GST as well.
Multi Trip Plans

Premium Details ( Including GST@18%) - Premium Details ( Including GST@18%) -
$250K $500K
Premium (in INR) Per Person Premium (in INR) Per Person
Days 01 to 41 to 56 to Days 01 to 41 to 56 to
Slab 40 55 60 61 to 70 Slab 40 55 60 61 to 70
30 4850 5514 6794 11744 30 6088 7154 9055 14100
45 5557 6102 7709 13821 45 6629 7896 10028 16191
60 6254 6690 8624 15898 60 7258 8623 10960 18407
The below is the rate chart for the Senior Citizens as they need to take a higher amount insurance cover and
hence the sum insured and premium both are higher.
Senior citizen -USD 50K

World Wide EX US/CANADA
71 to 76 to 71 to
Days 75 80 75 76 to 80
7 3356 6733 2307 4813
15 4401 9393 3025 6385
30 6315 14411 4339 9530
60 13229 32641 8529 20478
90 23000 53802 15242 33712
120 28804 71517 18851 46200
150 60115 108111 29843 67030
180 63089 129380 36165 80083
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(Senior Citizen -50k )

Coverages Sum
Deductible
Insured
USD 50,000 USD 100
Evacuation and Repatriation)
Daily allowance in case of $ 25 for
2 Days
hospitalization max 5 days
INR
Home- Burglary Nil
100,000
USD
Personal Liability Nil
100,000
Asia Plan US $ 25K Rates

Days 01 to 40 41 to 55 56 to 60 61 to 70
7 369 398 420 760
15 524 552 630 1194
30 832 967 1103 1650
45 1103 1155 1336 2226
60 1336 1336 1523 3046
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ASIA PLAN
Benefits Sum Insured Deductibles

Evacuation and Repatriation) 25000 100
USD 25 per day for
Daily allowance in case of hospitalisation max 5 days 2 Days
Personal Accident USD 15000 Nil
Trip cancellation and Interruption USD 1000 100
Financial Emergency Assistance USD 1500 Nil
Personal Liability 100000 Nil
USD 125 per day
Hijack Distress Allowance for max 7 days Nil
Emergency Hotel Extension USD 2000 Nil
The above is the plan for Asia, where sum insured is just USD 25000/- the lowest among all the other plans and
the premium is also the cheapest.
One should definitely take out travel insurance prior to travelling aborad.
Asian countries being the nearest and cheapest destination for Indian Tourist has a different attraction all
together and hence the plans and premiums are difffernt.
In the below slides, we will explain the common coverages :
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1. Medical Expenses (Including Medical Evacuation and Repatriation)
What does Emergency Evacuation/Repatriation insurance cover?
The emergency medical evacuation coverage provides benefits payable up to the policy limit in if the insured
suffers a medical emergency and requires transportation. It’s important to understand that this coverage is not
medical coverage. Instead, it is coverage for medically necessary transportation.
The method of evacuation is determine based on the patient’s condition and location. For example, in less
severe cases (such as a broken leg) a patient may be transported by air and then transferred to commercial
airline service. In other cases, evacuations are complex procedures involving:
 evaluation of transportation requirements such as oxygen, special equipment, altitude, etc.

 coordination of admission to an appropriate medical facility
 identification of appropriate air transportation and medical escort if necessary
 coordination of ground transportation at both ends of the evacuation
 immigration and flight clearances
 assistance with travel arrangements
If you are seriously ill or injured during your trip, this coverage will determine the closest medical facility
appropriate to your needs and make arrangements and pay to transport you to that facility. After receiving
medical care, this coverage provides assistance arranging and paying for you to be transported by commercial
transportation carrier to either:
 your primary residence,

 a location of your choice within the United States, or
 a medical facility near your primary residence or, with some plans, location of choice in the United
States.
In many policies, emergency medical transportation coverage also includes the following benefits:
 Bringing a friend or family member to the medical facility where you are being treated.
 Returning your dependent children to your home or to a location of your choice.
Repatriation definition
The term repatriation is not familiar to most travelers, so we’ve provided a definition here. Repatriation
coverage means that the travel insurance company arranges for and handles the transportation necessary to
return a covered person’s body to his or her home or to a nearby funeral or cremation facility.
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This benefit will arrange and pay for reasonable and necessary expenses, including, but not limited to, expenses
for embalming, an appropriate container for transportation, and shipping costs to transport your remains via the
most direct and economical route.
Some travel insurance plans also provide non medical evacuation services orsecurity/political evacuations.
What is NOT covered
This benefit does not include funeral, burial, or cremation expenses or related containment expenses for items
such as urns or coffins.
Important notes about this coverage
 All medical evacuations must be approved in advance and coordinated with the travel insurance plan
agents
 Emergency evacuation and repatriation coverage does not extend to your home country
 In a situation of repatriation, your representative must contact the travel insurance provider to make
arrangements
 Some plans provide reimbursement to bring a friend or family member to your bedside if you are
hospitalized for at least 7 days
 Some plans provide reimbursement to return dependent children home if you are hospitalized for at least
7 days
 Benefits paid for evacuation and/or repatriation are less the cost of your unused return travel ticket
What type of policy covers this?
All travel insurance companies offer at least a few plans ‒ both travel and medical plans ‒ with emergency
medical evacuation and repatriation benefits. In some travel plans, the travel insurance company may not
provide additional benefits for the return of dependent children or a bedside visit.
2. Daily allowance in case of hospitalization
Are you aware of insurance policies that offer you a cash allowance every day for your hospitalisation period?
Certain health insurance policies offer daily cash benefits to meet your medical and non-medical expenses
during your stay in a hospital.
Understand Your Health Insurance Policy
Policy providers offer daily hospital allowances either as a part of the insurance policy or as an additional rider.
Before buying any health insurance policy or a daily hospital allowance rider you must ensure:
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The daily cash limit offered to you
 Your eligibility for the policy
 Coverage span of the policy
Most insurance providers ask for a minimum 24 hour hospitalisation to be eligible to make a claim. Daily
hospital allowance does not apply to day care procedures and minor surgeries which don’t require a 24 hour
hospitalisation. Daily cash limit and coverage span of the policy also vary according to the policy provider.
Usually policy providers offer a cash limit between ₹ 1000 - ₹ 1,500 with a coverage span that varies from 2
weeks to 3 months depending on the policy provider. Those admitted in Intensive Care Unit (ICU) may avail
cash benefits in excess of the upper cash limit but the number of covered days will be reduced proportionately.
Persons with pre-existing medical conditions need to go through a waiting period during which they cannot
make a claim. Therefore, you need to carefully assess the eligibility conditions and your medical history before
buying a policy to avoid any conflict arising at the time of claim.
Things to Remember Before Buying a Policy
Hospital daily allowance policies can be tricky sometimes. Although the procedure to claim your daily
allowance is simple and closely resembles to the usual medical bills claiming procedure, yet, the cash benefits
may not be availed at the end of each day. Some policy providers may provide you the flexibility of daily
allowance, but usually most of them will provide cash benefits only after you get discharged.
It is always better to check whether your policy offers pre-fixed or per day hand cash outs beforehand. The
procedure of making a claim is easy yet some people feel it’s complicated and avoid making a claim, once their
medical bills are settled. This should be avoided and any claim no matter how small or large it is, must be made
in accordance with the policy’s terms and conditions.
3.Dental Treatment :
All kinds of things can happen when you travel, but a broken tooth, lost filling, or sudden tooth pain can be one
of the worst travel emergencies – certainly one of the most uncomfortable and painful.
Of course, there’s a difference between regular dental care and a real dental emergency. So, how does travel
insurance cover dental?
Essentially, travel insurance cover for dental treatment provides reimbursement for emergency dental care if
you experience an injury, infection, lost filling, or broken tooth that requires immediate treatment by a dentist.
If prescription drugs, anesthesia, or x-rays are necessary, those will be paid up to the limits of your travel
insurance plan.
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Which travel insurance plans cover dental?
Coverage for dental treatment depends on your travel insurance plan. Travel insurance plans come in two basic
types: vacation plans and medical plans. Vacation plans, which are also called package plans, cover a traveler
for all kinds of things that can go wrong over a specified period of time on a particular trip.
A travel medical plan, on the other hand, can be purchased for the traveler who wants medical and dental
coverage while they’re traveling but isn’t concerned about trip cancellation losses. Travel medical plans can
cover a traveler for short trips or long-term travel of three, six, and even twelve months at a time. Many of those
plans include limited dental care and treatment for dental emergencies.
Travel insurance dental coverage limits
As you might expect, there are a few important limitations on travel insurance cover for dental. Most package
plans exclude any coverage for dental treatment that is not the direct result of an accidental injury. In addition,
travel insurance plans will not cover damage to or the loss of dental bridges, dentures, mouth guards, braces, or
other orthodontic devices – even if stolen from your luggage.
In addition, travel insurance plans place limits on how much they will pay for dental care – even emergency
treatment. Most plans have a $500 – $1,000 limit on emergency dental treatment. Even long-term travel
medical plans have definite limits on dental care expenses.
How travel insurance claims for dental are paid
In most cases, with dental treatment you’ll need to pay for the expenses yourself first and then make a claim on
your travel insurance after. It’s for this reason that you are strongly encouraged to contact your travel insurance
provider as soon as you determine dental treatment is necessary so you can get recommendations for dentists
and advice on how to complete your claim, including the documentation you’ll need to prove your claim.
4. Personal Accident : Advice on Personal Accident / Travel Insurance for Mobility Programme
Participants You should take out Personal Accident Travel insurance for your time overseas. This should
include the following standard elements of cover:
Medical costs for treatment in case of illness or accidental injury Benefits for permanent disabling injuries, eg
rehabilitation and living costs Benefits for death and costs of repatriation Cover for loss or damage to your
personal belongings Cover for cancelled flights, eg if the airline goes out of business or on strike Personal
Liability cover.
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This provides legal support and covers financial costs if you cause injury or property damage to others and are
found personally liable. 24hr emergency assistance helpline. Many policies also have Legal Expenses cover,
which is recommended in case you need legal assistance while overseas.
Personal Accident Travel policies are readily available on price comparison websites, or by using a search
engine to search for ‘travel insurance’. Remember to save the emergency contact number for your travel
insurance to your mobile phone, keep a copy of your insurance policy in a safe place and give your insurance
policy number and the emergency contact number to your next of kin.
5. Loss of Baggage : Arriving at your destination and discovering that you’ve lost your luggage along the
way is no fun – even for the most experienced traveler.
Luggage can be lost en route, it can be stolen from the airport baggage carousel, it can fall overboard as it’s
being loaded onto the cruise ship, it can even be nabbed from the back of your taxi cab or hotel room. When
your bags go missing, it’s important to understand how travel insurance covers lost luggage.
Travel insurance coverage for lost luggage is slightly different depending on whether your bags are
permanently lost or temporarily lost.
A permanent loss of luggage is covered under travel insurance baggage coverage, which reimburses the insured
traveler (up to the policy limit) for the value of lost luggage and the personal items inside.
A temporary loss of luggage is covered under travel insurance baggage delay coverage, which reimburses the
insured traveler (up to the policy limits) for the purchase of essential personal items necessary until their
luggage arrives.
The airlines have strong limits on what they will pay for lost luggage and it can take days, or even weeks,
before an airline will decide that your bag is permanently lost. When your carrier loses your bag, travel
insurance picks up the slack. Plus travel insurance coverage for lost luggage follows you everywhere you go on
your trip – they’ll even replace the bag itself.
Limitations on travel insurance coverage for lost luggage
Travel insurance claims for lost luggage have limits placed on them by the traveler’s travel insurance. While
every travel insurance plan varies slightly, there are some common limits placed on lost luggage claims. It’s
important to understand:
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Baggage coverage is secondary to the coverage provided by another travel supplier, such as an airline. If you
lose your luggage anywhere along your trip, the secondary coverage becomes primary when another supplier
wasn’t responsible for the loss.
Every travel insurance plan defines a maximum payout and a per-item limit. Your plan might have $1,000 as a
maximum limit, for example, and a $300 per-item limit for those more expensive items.
Travel insurance plans also have a long list of items that a traveler might store in their luggage but aren’t
covered by any plan. Some of those items include contact lenses, artificial teeth, keys, credit cards, and other
items.
To fully understand your travel insurance coverage limits, be sure to look at your plan and read the section on
baggage and the exclusions.
Extra coverage for lost luggage
Many travelers carry credit cards with travel benefits and some of those include coverage for lost luggage. Of
course, those trip protection benefits will also come with limits similar to that offered by travel insurance plans,
but sometimes the coverage a traveler has with their credit card plan is better than the luggage coverage they
have with their travel insurance plan.
If you do have to make a claim for a lost bag, it’s a good idea to look at all the coverage you have. You may
make a claim first on your credit card travel benefits and then with your travel insurance plan. If you what you
lost was valued at more than what you recovered through your credit card plan, a secondary claim on your
travel insurance benefits for lost luggage just might make up the difference.
6. Baggage Delay Coverage :
This travel insurance coverage provides a certain amount (from $100 to $500 depending on the plan) to
purchase the essential personal items necessary to get you through until your luggage arrives.
What the airlines owe you when a Baggage Delay occurs :
Airline compensation for delayed baggage is very limited and usually isolated to locating your bag. The airlines
are not even required to bring your bag to you when it’s found, although some will.
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Most airlines have guidelines that allow some monetary funds to be distributed for emergency purposes, but
this is not required and it’s defined on a carrier by carrier basis. Plus, the amount depends on how long it takes
the airline to track down your bags. In some cases, the reimbursement is in the form of future travel vouchers,
which isn’t very useful when you really need your clothes and shampoo.
Most airlines won’t even consider paying out until the bag is missing for at least 24 hours, and each carrier has
a long list of items they won’t reimburse you for as well.
What does Baggage Delay cover?
This coverage is intended to provide for the essentials until your bags can be located and returned to you. This
coverage starts when your bags have been delayed a certain number of hours (usually between 12 and 24).
With this coverage on her travel insurance plan, Samantha would have the cash she needed to purchase some
clothing (a swimsuit is at the top of the list!) and other necessary items to get her through until her bags could
arrive.
Important notes about this coverage
 This coverage is considered secondary to coverage provided by a common carrier, such as an airline.
 Airline coverage for delayed baggage is extremely limited – usually isolated to locating your bags and
bringing them to you when it’s convenient.
 Airlines do not provide compensation for delayed baggage unless it’s been missing for at least 24 hours,
and their ‘compensation’ may be in the form of future travel vouchers.
 The items you purchase must be reasonable essential items. Incurred expenses must be verifiable, so
keep your receipts and take pictures of the items you buy to carry you over until your luggage arrives.
 Baggage delay coverage doesn’t provide protection when you reach your final destination or place of
residence.
7. Loss of Passport :
Does Travel Insurance Cover Lost Passports?
When your passport is lost or stolen and you’re getting ready to leave or already on your trip, that loss could
spell disaster for your travel plans – not to mention your wallet and credit card bill! Getting a replacement
passport isn’t nearly as quick or easy as it was before 9/11 either.
If you cannot get a replacement in time for your trip departure or your trip home, you could be facing a big loss.
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Here’s how travel insurance covers lost passports:
Pre-departure trip cancellation benefits will reimburse you for your pre-paid and non-refundable trip expenses if
your lost or stolen passport cannot be replaced in time for your trip.
Post-departure trip interruption benefits will reimburse you for unused travel arrangements plus additional
transportation costs to catch up to your covered trip.
Trip delay benefits will be paid to include unexpected expenses incurred while you’re waiting for your passport
to be replaced.
Reimbursement of the fees required to get a replacement passport is usually included in travel insurance cover
for lost passports too, but only up to a certain amount (usually $50 to $100).
Travel insurance companies are also very helpful when your passport is lost or stolen and you need to secure a
replacement – and quick! Insured travelers should call their travel insurance assistance services hotline (listed
in your plan documents) for advice and help getting a passport replacement either before they leave or while
they’re on their trip.
Tips to make a travel insurance claim for lost or stolen passport
As with any insurance claim, you’ll need to follow the rules listed in your plan to ensure that the claim process
goes smoothly. Essentially, there are two rules to be aware of when making a claim due to a lost or stolen
passport:
A claim for a stolen passport must be substantiated by a police report.
A claim to be reimbursed for the fees to replace your lost or stolen passport must be accompanied with a paid
receipt to substantiate the claim.
If you’re already on your trip and your passport is stolen, call your travel insurance company and let them know
the situation. The travel assistance services representatives will help you find local law enforcement so you can
make a report (be sure to get a copy!) if it was stolen. They’ll also help you find a local embassy where you can
get your lost or stolen passport replaced.
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8. Trip cancellation and Interruption :
The most popular reason for purchasing travel insurance is trip cancellation coverage.
Trip cancellation coverage reimburses 100% of your pre-paid, non refundable travel expenses if you have to
cancel your trip for a covered reason. The covered reasons for a trip cancellation are also the covered reasons
for trip interruptions.
What is a covered reason for trip cancellation or interruption?
A covered reason is a valid reason listed in the travel insurance policy for canceling or interrupting your trip.
Travel insurance plans only cover you for the risks that are listed in the description of coverage. If it’s not
specifically listed, or if it is excluded, then it’s not covered.
Typical covered reasons for trip cancellation/interruption include:
 Injury or illness of insured, travel companion, family member, or business partner

 Hurricane or natural disaster strikes destination
 Bankruptcy or financial default of travel company
 Terrorism or mandatory evacuation at destination
 Death or hospitalization of destination host
 Home or business damaged, vandalized, or burglarized
 Jury duty, a required court appearance, or military redeployment
 Required to work, terminated, or transferred
 Victim of felonious assault prior to trip
 Traffic accident prior to trip
 Theft of passport or visa prior to trip
 School year extension
 Legal separation or divorce
 Loss of accommodations abroad due to an illness or death of host family or friends
 and more
Of course, it’s important to note that travel insurance plans vary in their coverage.
If you have to cancel your trip, the situation causing you to cancel must qualify as a covered reason. Carefully
review and understand the plan’s description of coverage.
How to get coverage for any reason
35
Alternatively, travelers can consider purchasing optional ‘Cancel for any reason’ coverage.
This coverage lets you cancel for any reason and receive reimbursement.
For example, there are no travel insurance plans that allow you to cancel your trip due to concerns about civil
unrest or political upheaval at your destination. If this is a concern on your trip, ‘cancel for any reason’
coverage can ensure you get at least a portion (50-100%) of your travel investment back.
9. Trip Delays :
Even at the last minute, your vacation plans may go awry due to an unforeseen strike or inclement weather,
delaying your trip and keeping you from getting somewhere important, whether a special family event, a
vacation, or a business meeting. Such an incident proves not only stressful, but also expensive, since you have
to bear additional expenses for accommodation, food, and medicines.
A trip delay insurance will provide you reimbursement for additional transportation costs or additional expenses
for meals and lodging should your flight be delayed by inclement weather or other covered reasons.
Your policy will cover you for the trip delay insurance benefits if your trip is delayed for more than a stipulated
number of hours because of events described in your policy, such as common carrier delays, traffic accidents,
weather conditions, lost or stolen money or travel documents, natural disaster, and terror strike. Usually the
benefits included in the policy are aimed at helping you return home or rejoin your trip. They may also include
compensation for any unused and non refundable portion of your trip.
In other words, if your trip gets delayed due to inclement weather or due to strike or any other covered reason,
trip delay reimburses you for food and accommodation.
For example, there is a flash flood in your city, forcing delay of your trip. Reimbursement will cover the daily
meals and accommodations (to the policy maximum) if your departure is delayed for more than the number of
hours required for a covered reason during your trip.
During your coverage period, if you are traveling through a common carrier and your trip gets delayed for more
than 12 hours while going to the destination or returning back, you are entitled to receive the trip delay
insurance benefits.
Most travel insurance policies usually cover trip delay along with trip cancellation. You may optionally find a
policy that covers trip delay exclusively or as a major benefit. Depending on your need you can pick the
appropriate policy.
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10. Missed Connections :
Are missed flights covered by travel insurance?
Although travel insurance differs between providers, many do offer some form of cover if you miss
your flight, whether it’s your initial outbound flight, a connection, or an inbound flight to bring you
home.
Check to see if your insurance provider covers additional costs you’ve had to pay – such as
accommodation costs – because of a missed flight or connection.
The amount you can claim is limited to a set maximum amount, which can be anywhere between
£250 to £1,000, depending on your individual policy.
An insurance provider may accept a claim for a missed flight if the delay was caused by:
 - public transport delays
 - road accidents – be aware though, that some insurance providers only offer cover if the accident
happened on a dual carriageway or motorway
 - your car broke down
 - extreme weather conditions – such as a snow storm
You’re unlikely to be able to claim if you missed a flight due to:
 - oversleeping
 - not getting yourself organised and leaving enough time to get to the airport or get through security
 - a protest or civil unrest that had not been publicly announced in advance
 - heavy traffic delays that weren’t caused by an accident, for example, roadworks
 - if you refuse compensation or alternative flights offered by your airline
Is cover for missed flights or connections part of a standard travel insurance policy, or an extra add-on?
37
Most insurance providers who offer missed flight insurance, dont include it in their standard policies, and
only offer it as an extra add-on.
The cheaper policies will almost certainly not include any cover of this type. And some policies will only
cover missing your initial flight, not connecting flights.
If missed flight or connection cover is important to you, check the policy terms and conditions carefully
before you buy, and speak to your insurance provider to see if they can offer it as an add-on.
Will travel insurance cover missed connections?

If you miss a connection and it’s the airline’s fault, for example, your flight is cancelled, they will be
responsible for getting you on another flight and paying for food and accommodation.
Also note, your airline is only obliged to pay compensation if you have a through ticket with them (one
single ticket with the same airline for all connections). So, for example, if you have two separate tickets
for two separate airlines, it’s only the first airline that made you miss your connection that’s responsible,
and not the connecting airline.
Most insurance providers won’t cover you for delays and missed connections caused by the airline.
If you miss your flight and it’s not the airline’s fault, then the airline has no obligation to compensate you.
Some insurance providers will cover missed connections if the airline is not obliged to pay compensation. Just
make sure you check your policy to see whethet connections are included.
You may also be covered if you miss a connection on another type of transport due to a delayed or cancelled
flight, such as a train, bus or ferry.
What should you do if you miss your initial flight or connection?
If you arrive at the airport too late to catch your flight, go straight to your airline’s customer services desk,
explain what’s happened and find out if they’ll offer you an alternative flight.
If you missed your flight through no fault of your own, make sure you can prove it to your insurance
provider. Examples of evidence to help boost your chances of a successful claim include:
 photos or video of the scene, if you were delayed by a road accident
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testimonies from any eyewitnesses to the accident
 confirmation from a breakdown company that your vehicle was involved in an incident
 confirmation from the Department of Transport or Highways Agency that there was an incident on the
road you were travelling on
 photos or videos of extreme weather that caused your delay
 photos of display boards announcing a public transport delay
 travel documents, tickets and receipts
 your itinerary or travel plan

 evidence that your airline acknowledged a delay occurred, for example, an announcement on their
website, or you can ask their customer services department to confirm it in writing
11. Financial Emergency Assistance :
Whether traveling for business or pleasure, everyone should take the proper precautions to ensure that they
have a successful and worry-free trip. When traveling abroad, many different types of emergencies can occur.
There is no sure way to prevent accidents, but there are ways to decrease the likelihood of emergencies and plan
for the unforeseen. The best way to prepare for emergencies that occur while traveling is to invest in a travel
insurance policy.
A safety net against the unknown
When traveling in a place that is unfamiliar, travelers may be unaware of their environment, and because of
that, they may be more vulnerable. Apart from researching their destinations, travelers should purchase travel
insurance for the many benefits it can provide, including: coverage in the event that a flight is delayed or
cancelled, baggage is lost or stolen, personal injury, and theft. Travel insurance provides travelers with a safety
net, should they find themselves in a sticky situation during their trip. Some travel insurance plans also cover
medical evacuation and other costs that can be financially taxing on travelers.
39
Assistance services as your guide
Those who purchase a travel insurance policy before their trip can feel confident that they will be able to travel
safely and without worry. Every travel insurance provider offers some form of emergency services to their
policyholders, and these emergency services are available 24 hours a day; all policyholders have to do is call
their travel insurance provider, and they will provide assistance for any number of situations. Some travel
insurance providers also offer multi-lingual service agents to assist travelers in almost any country in the world;
they can help you contact local rescue services or medical centers. Such assistance is especially important for
those who are traveling to remote locations; it is not easy to get medical care and evacuation services in a
remote areas.
In case of theft
Travelers should also be aware of the increased risk of theft while traveling. Tourists are very attractive targets
for criminals, because they may carry a large amount of cash with them. If a traveler’s cash, credit cards, and/or
passport is stolen, it is very important that the problem be addressed immediately. Without the proper travel
documentation, travelers may not be able to board their flight back home, or cross the border into another
country. Being without access to your financial assets or accounts is extremely frustrating. If this happens,
travelers should call their travel insurance company immediately; a good insurance company has extensive
experience in dealing with stranded travelers, and it can provide valuable advice and assistance.
Important reimbursements
A travel insurance policy may also provide financial compensation if an emergency causes the traveler to lose
money. A typical travel insurance plan may cover losses stemming from medical bills, curtailment or
cancellation of a flight, loss of personal belongings or baggage, and emergency evacuation. If travelers need
coverage for other types of emergencies, additional coverage options are available and can be added to a
standard travel insurance plan. Travelers can also increase the levels of coverage provided. For example, if
visiting a country that has a high crime rate, travelers may want to purchase an upgrade for loss of cash and
belongings coverage.
To make sure that they will get the most efficient emergency services, travelers should purchase their travel
policy from one of the leading travel insurance companies. These insurers have the necessary experience and
global connections to help their customers get out of all sorts of difficult situations while traveling abroad. They
also offer a wider range of emergency services than most smaller insurance companies do.
40
12. Home- Burglary :
Home burglary is very common in India. Contrary to popular belief, most burglaries do not occur in the night.
In fact, according to the data collected 65% of robbery takes place in the middle of the day. This is one of the
primary reasons people are scared to take a vacation or be away from their houses for a longer duration. But,
with the inclusion of theft insurance in travel insurance, it has given people a chance to explore the world
without any worry.
Theft insurance in this policy covers only certain household items like:
Electronics
Cameras, Camera Equipment
Jewellery, Gems, Watches
Sports Equipment
Real Furs
The limit is usually capped by the insurers, so make sure to read the documents thoroughly before you sign on
the dotted lines.
Now, suppose you encounter a theft, in this case how does travel Insurance work? Travel insurance covers
burglary by reimbursing a traveller for the loss of their valuables in their possession during the trip. The travel
insurance policy covers a traveller for any theft that occurs in the airport, in the hotel, and while the traveller is
in transit, i.e., on a bus, in a taxi, etc. By providing suitable proof of the worth of a lost item, one can claim a
direct reimbursement. However, the amount that is reimbursed cannot exceed the amount already mentioned in
your insurance plan.
Listed below are items that are not covered under travel insurance for theft:
 Money, money orders, stamps, stocks, bonds

 Musical instruments
 Hearing aids
 Animals
 Artificial limbs, prosthetic devices, artificial teeth
Besides, travel insurance also covers you in case you are a victim of a pickpocketing incident. All your essential
documents will be retrieved, including your passport.
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Burglary at your home can bring about a huge financial loss to you. It is important to shield your house from
the risk of such occurrences
Burglary insurance, also known as crime insurance covers property damage and any financial loss that occurs to
your household property upon the entry of an intruder, while you are on a trip. Policyholders are required to
inform the case of theft to their insurance company before they file a complaint. Travel Insurance Plans on
Finserv Markets offers Home Burglary coverage of up To Rs. 3 Lakh.
A travel Insurance is a great way of protecting your valuables and it is a smart decision one would never regret.
13. Hijack Distress Allowance :

Compensation payable in case of hijack of air or sea common carrier for more than 12 hours whilst on a trip
abroad.
Coverage:
 Payment of an allowance in the event of hijack of a common carrier in which the Insured Person is
traveling on a trip covered under the policy.
Exclusions:
 Any incident where the Insured Person is suspected to be either principal or an accessory in the
hijacking.
 Any claim due to a change in the regular routes of travel/journey of the common carrier due to traffic,
weather, fuel shortage, and technical snag or security reasons.
 Any exclusion mentioned in the 'General Exclusions' section of the Policy.
14. Compassionate Visit :
Compassionate visit expense is an important feature offered by group travel insurance. If while travelling, the
insured gets hospitalized after an accident or illness, any of its family members can travel to stay with him/her
at the hospital. The insurer will cover travelling expenses incurred by a family member.
However, a group travel insurer will cover compassionate visit expenses only if the hospitalized insured is
alone in a hospital and the number of days in a hospital exceeds the limit specified by the group travel insurance
42
company beforehand. Also, only closed family members, like parents, spouse, in-laws, etc.; shall be covered by
the insurer.
Here is the process that needs to be followed to claim the compassionate visit expense under group travel
insurance policy –
The policyholder is required to file the claim with the Claim Department as mentioned in its group travel
insurance policy document. You can send your documents by email or fax and file your claim immediately once
you are back in India. The claim will be settled by the group travel insurer within seven days (or as defined by
the group travel insurance company) of having received all the necessary documents.
All the documents related to claim must be sent as soon as possible within a month of returning to India or the
expiry of the policy, whichever is earlier.
Some of the documents that need to be submitted to process the claim are-
 Duly filed and signed claim form

 Overseas doctor certificate specifically stating the necessity of having an attendant
 Passport and Visa copy of attendant with overseas entry stamp and exit stamp from India
 NEFT form and pre-printed cancelled cheques to prove that the claimant has the bank account in the
Indian Bank
 Invoices and bills for supporting the claim amount
 Copy of ticket itinerary
In case your group travel insurance has a deductible limit, you would have to pay a certain claim amount before
the insurer kicks in. In case the group travel insurer accepts the compassionate visit claim, payment will be
made only in Indian Rupees.
Note: The above list of documents is only indicative. Please contact your group travel insurer or read the policy
document for more information.
Case :
As J.L IT had its head office in London, many employees had to make an official trip abroad for official
purposes. As travelling was a common trend, the company had purchased a group travel insurance for all its
employees.
43
Last year, Rahul Saran, one of its senior software engineers went to London on an official tour. However, the
cab which he took from airport to his hotel collided with a truck coming from the other side. Luckily, passersby
took Rahul and the driver to a nearby hospital. The initial medical reports of Rahul showed grave head injures
which needed to be operated upon. The hospital staff informed J.L IT with the help of the documents available
in his luggage.
As J.L IT had a group travel insurance with it, the company informed the insurer who later contacted with its
London office to initiate the claim process.
Here in India, when Rahul’s father came to know about his accident, he travelled to London to be at his side in
the hospital. After staying hospitalised for 20 days, Rahul was discharged.
Here, group travel insurance company asked for documents like a medical prescription, doctor’s bill, etc.; and
after scrutinizing them, settled the claim amount.
The group travel insurer also helped in covering travel expenses incurred by Rahul’s father. The group travel
insurance had a special clause which covered compassionate visit expenses. It means, if the insured is
hospitalized, his/her family member can visit him, and the insurer will cover their travelling expenses.
In this case, Rahul’s father travelled to visit him who was alone at the hospital. Rahul knew about this cover in
his group travel insurance policy, and therefore, he mailed all the documents related to travelling of his father to
the group travel insurer. Some of the documents submitted by Rahul were –
 Duly filled claim form

 Overseas doctor certificate stating the necessity of having an attendant
 A copy of ticket, etc.
The group travel insurer carefully analysed all the documents and settled the claim under compassionate visit
cover.
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15. Emergency Hotel Extension :
In consideration of the payment of additional premium, it is hereby agreed and declared that the Policy to which
this rider is attached is extended to pay for the costs of Hotel accommodation of the Insured and his family
members under the following circumstances:
A) Hospitalization of the Insured arising out of illness or accident during the policy period which is covered
under “Personal Accident” and “ Medical Expenses and Medical Evacuation” Sections of the policy to which
this rider is attached.
B) The Insured and his family members are unable to travel on the Scheduled Date of Departure as the insured
is confined to the Hospital and therefore would be required to post pone their date of departure to another date
C) Insured and his family members would be required to stay in a Hotel from the date of discharge from the
hospital of the insured until the revised Date of Departure.
D) Subject to the above conditions,The expenses payable under this clause will be the reasonable expenses
incurred towards the cost of Hotel accommodation of the insured and his family members only from the date of
discharge from the hospital of the insured until the revised date of departure or the expiry of seven days from
the date of discharge of the insured from the hospital whichever is earlier.
For this purpose, family member shall mean spouse, parent, children or in-law of the insured. SPECIAL
CONDITIONS: It is agreed and declared that this benefit shall be extended only if the Hospitalization of the
Insured is admissible under the “Personal Accident” and “Medical Expenses and Medical Evacuation” Sections
of the Policy to which this rider is attached.
The Company’s Liability in respect of this Rider shall be limited to the actual expenses of Hotel
accommodationor the Sum Insured mentioned in the Policy Schedule whichever is less.
CO-PAYMENT: It also hereby agreed and declared that the Insured shall bear a co-payment of 10% of the
admissible claim subject to a minimum of USD 50 in respect of each and every claim. Subject otherwise to all
the other terms, conditions, limitations and exceptions of the Policy to which this rider is attached.
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Below is an example of travel insurance which was recently undertaken by me during an

trip made abroad.
46

Travel Insurance A36

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Travel Insurance 1

Coverage and benefits of domestic travel insurance in India.

 Personal Accident Cover

Exclusions of a Domestic Travel Insurance Policy:

 Expenses that are non-medical are not covered

 If the insured person got injured while involved in an illegal activity

Travel Insurance Online in India

Understanding Travel Insurance

Why Should You Purchase A Travel Insurance Policy?

Things To Keep In Mind While Purchasing Travel Insurance

 Purchase your travel insurance plan keeping in mind your destination.

A Guide to Travel Insurance for Students Planning to Study Abroad

What is International Travel Insurance for students?

Importance of Overseas Travel Insurance for students

Common Coverage of a Student Travel Insurance Policy

 Cost of medical treatment of illness, injury, etc.

Common Exclusions of a Student Travel Insurance Policy

 Non-declared pre-existing diseases

How to Purchase Student Travel Insurance Policy?

Travel Insurance Tips for Solo Women Travelers

International travel insurance

Credit card travel insurance

When choosing a travel insurance policy you should find out:

 What is included in the policy

Common exclusions may include, for example:

 Pre-existing medical or mental health conditions :

How premiums are calculated :

 The length of your trip

A premium is the amount you pay an insurer for insurance cover.

How it works – calculating premiums :

Why premium prices change

What may influence your premium?

Some key factors influencing your premiums may include:

 Type of cover selected

Balancing premium prices :

Paying monthly or annually :

Not all risk is the same

Premiums go to an insurer's capital base :

Tips for managing premiums :

Consider these tips to manage the cost of insurance:

 Increase your excess :

USD $ 100K - EXCLUDING US/CANADA USD $ 100K - World wide

USD $ 250K - EXCLUDING US/CANADA USD $ 250K - World wide

7 794 1030 1240 1571 7 1017 1318 1603 1999

15 954 1300 1521 2257 15 1358 1778 2030 3159

30 1390 1800 2081 3544 30 1997 2537 2883 5335

45 2129 2418 2292 5324 45 3150 3679 3988 7683

60 2577 2810 3041 6516 60 3991 5223 5965 10031

75 2986 4214 5096 9797 75 6021 8393 12251 18627

90 3999 5903 7251 14815 90 7308 9769 15207 32722

depending upon the coverages.

Repatriation of Remains USD 7500

USD $ 500K - EXCLUDING US/CANADA USD $ 500K - World wide

Medical Expenses (Including Medical USD USD

Dental Treatment USD500 USD500 100

Delay of checked-in baggage USD 100 USD 200 12 Hours

Passport Loss USD 250 USD 350 Nil

Trip Delay USD 200 USD 200 8 Hours

Missed Connection USD 500 USD 500 Nil

Hijack Distress Allowance USD 500 USD 500 Nil

Multi Trip Plans

30 4850 5514 6794 11744 30 6088 7154 9055 14100

45 5557 6102 7709 13821 45 6629 7896 10028 16191