LEGAL ASPECTS IN TOURISM AND HOSPITALITY

MODULE 8

TRAVEL INSURANCE
OBJECTIVES

 At the end of this module, you should be able to:

 Define travel insurance.
 Explain the benefits of insurance policy.
 Describe the most travel insurance plans cover.
Travel Insurance

 It is an insurance product for covering unforeseen losses incurred while

travelling, either internationally or domestic.
Benefits of Insurance Policy

1. Overseas emergency medical assistance. 24-hour cover for medical evacuations,

ambulances, funeral arrangements and more.
• A type of international insurance designed to cover emergency health care assistance
while traveling or vacationing abroad.
2. Overseas emergency medical and hospital costs. If you need to go to hospital suddenly
because of injury or illness you’re covered for hospital stay, surgery, and emergency dental
treatment.
 Refers to people traveling abroad to obtain medical treatment.
3. Accommodation and travel expenses. If you’re sick or injured and can’t get home, travel
insurance will cover your unforeseen additional accommodation and travel costs.
• The costs for an overnight stay, usually in a hotel that may be taken as a federal income tax,
deduction if the Internal Revenue Service’s criteria are met.
• Lodging expenses are usually a business expense that is incurred when someone must travel
away from their tax home to do business.
4. Family emergency. You’re covered for your unexpected travel expenses if a close relative or the
person you’re travelling with dies unexpectedly, or is disabled or injured and needs to be
hospitalised.
• Is something that happens instantly and influences that well-being or security of your relatives.
5. Cover for your travelling companion. If you’re travelling companion can no longer continue with
their holiday because of injury or illness, any unforeseen accommodation or travel.
• This insurance may receive if your travel companion can no longer continue with the trip and
you need to go home.
6. Resumption of journey. If you need to return home because of a death in the family, or severe sickness that
requires a hospital stay and close family member, your flight will be covered to get you home.
• Cost to resume your travels if you had to return due to a sudden serious injury, sickness, disease or death
of a relative or business partner
7. Hospital cash allowance. An amount you’ll be given per day if you’re hospitalized for more than 2 days
overseas.
• A daily hospital cash plan provides a lump sum amount in case of hospitalization 
8. Accidental death. If you die within 12 months of your trip because of an injury you experienced during your
holiday, a death payment is offered.
• An unnatural death that is caused by an accident.
• Accidental deaths are distinguished from death by natural causes (disease) and from intentional homicides
and suicide.
9.Permanent disability. If you lose your sight, or any of your limb while on holiday, a disability payment will be
paid to you for at least 1 months after you return home.
• It means that because of a sickness or injury, a person is unable to work in their own or any occupation for
which they are suited by training, education or experience.
10. Loss of income. If you’re injured during your trip and can no longer work, you’ll be paid a
loss of income benefit for a set period of time.
• Refers to the situation in which a person’s source of money for expenses or lifestyle, such
as salary from a job or income from a business, is terminated. This financial risk can be
covered by insurance.
11. Credit Card fraud and replacement. You’ll be reimbursed for any costs to replace your
credit cards, or any fraudulent use, if they are lost or stolen on your trip.
• When a credit card is loss or stolen, it may be used for illegal purchases until the holder
notifies the issuing bank and the bank puts a block on the account.
12.Theft of cash, traveler cheques and travel documents. You’ll be reimbursed for any costs to replace
your passport, travel documents or travelers cheques if they are lost or stolen on your trip. And if your
cash is stolen-you’re covered.
• This means that a traveler’s cheque can never bounce unless the issuer goes bankrupt and out of
business. If a traveler’s cheques were lost or stolen.
13.Luggage, personal effects and delays. You’re covered if your things are lost or stolen during your trip. If
your luggage is delayed more than 12 hours and you need to buy some clothes, travel insurance will
reimburse these costs – in moderation.
• Insurance referring to baggage or personal items are lost.
• Travel Insurance for lost or delayed baggage.
14. Cancellation fees and lost deposits. You’re covered for any cancellation fees and lost deposits for your
pre-paid travel arrangements if you cannot make your flights or planned accommodation due to
circumstances out of your control.
• Means the lost deposits and cancellation fees for pre-paid holiday arrangements due to unforeseen
circumstances.
Travel Insurance Policy
Travel Insurance Policy will have coverage for a traveler’s main concerns, including trip cancellation,
medical emergencies, travel delays, and lost luggage. Most policies are built to be comprehensive to
protect travelers from a variety of events that may cause a financial loss before or during their trip.
Most travel insurance plans cover:
• Medical emergencies
• Trip cancellation
• Trip interruption
• Delays
• Medical evacuation
• Lost, damaged or stolen luggage.

 Legal Expenses. It refers to a particular class of insurance which facilitates access to law and justice by
providing legal advice and covering legal costs of a dispute, regardless of whether the case is brought
by or against the policyholder.