Going on holiday to another country can be an exciting experience. However, unforeseen circumstances such as medical emergencies, trip cancellations, or lost luggage can upset even the most carefully laid plans. That is where travel insurance comes in, offering peace of mind and financial protection against unexpected events while traveling.
Understanding Travel Insurance
Travel insurance is a type of insurance policy that offers financial compensation for travel-related mishaps. These include :
1. Trip cancellation/interruption i.e. when you need to cancel or cut short your trip due to reasons, such as illness, injury, or severe weather.
2. Medical and evacuation, i.e. when you need medical treatment due to illness or injury while traveling abroad, including hospitalization, doctor visits, and emergency medical evacuation.
3. Baggage loss/delay, i.e. when your luggage is lost, stolen, or damaged. You may also claim reimbursement for essential items purchased due to baggage delay.
There is also something called liability insurance. This protects you in case you are found at fault for an accident that causes injury or property damage to someone else while on your travels. It helps cover legal fees, medical expenses, and property repair costs.
It is important that you read your policy carefully to ensure that it provides the type of coverage that you need.
How does travel insurance work?
When you buy a travel insurance policy, you pay a premium to the insurance company to be covered for a fixed time (i.e. your travel period) against specific events.
Travel insurance usually functions on a claims and reimbursement basis. You need to foot the medical bill first, then file a claim to the insurance company, which will then reimburse you for the amount you are covered for.
If you get so sick or injured while abroad that you need to be taken via helicopter or other emergency transportation to the nearest hospital, you will incur a very hefty medical bill. However, if your travel insurance policy provides such coverage, then the insurance will cover this cost. Do note that in most cases, the insurer must be contacted in advance and the insurer also reserves the right to decide which hospital you will be transported to.
The timing of your travel insurance purchase is crucial. If you bought it before the covered event occurs e.g. flight cancellation before your travel date, you will be covered for the cost of the holiday. However, if you bought it after the flight was cancelled, you will not be covered.
How to file a claim?
In order to file a claim, you need to gather all the necessary documentation to support our case. You need to submit proof of whichever event you are claiming for. This includes invoices, receipts, photos, and any other relevant evidence. The insurance company will get it verified and reimburse you according to what your purchased travel insurance policy covers.
What doesn’t travel insurance cover?
There are certain events which travel insurance does not cover. Some of the more common ones are :
- pre-existing medical conditions
- suicide or self-injury
- illness/injury caused by alcohol/drugs consumption
- sexually transmitted diseases (STD)
- pregnancy, childbirth and miscarriage
- psychological disorder
- acts of war
It is important that you read your policy carefully to know the full list of exclusions.
How much does travel insurance cost?
The price depends on factors such as the coverage amount, duration of coverage, and destination. You can also opt for individual or family travel insurance plans.
In conclusion, travel insurance can help you to reduce the financial impact of unexpected events that happen during your holiday. You will be able to travel with peace of mind, knowing that you are protected again unexpected events such as flight cancellations, baggage loss, medical emergencies and potentially high healthcare costs.