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Non Life Insurance - Pick an insurer with strong track record for travel plan

27 Jun 2012

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We all aspire for at least one annual holiday to an international destination. The trip is meticulously planned and an exhaustive itinerary prepared to ensure that we do not miss a thing. However, for most travellers, the checklist does not mention travel insurance. A majority of us do not realise that our holiday could get affected by many untoward incidents, such as loss of passport, baggage delay, sickness, or, even an accident. It is, therefore, recommended that travel insurance be on top of all holiday checklists to have an enjoyable and worry-free vacation. Though, there has been a rise in awareness about travel insurance recently, this type of policy is bought by only one out of every five international travellers.

While opting for travel insurance, one should be aware of what the policy covers, and more importantly, its exclusions. It is recommended that the customer choose an insurance plan that is most comprehensive in terms of coverage. One should also check if the coverage for accident and sickness expenses, baggage loss or delay, passport loss, personal liability and emergency evacuation, among others, is optimum. Another important factor to be taken into consideration is the worldwide assistance and claims network that the insurance company offers through its TPA (assistance company). The assistance company plays a critical role in the event the policyholder falls ill or requires assistance for baggage delay and passport loss, to name a few. Without a good assistance partner, who has international experience, the insurer will not be able to deliver on their promise at the time of a claim.

Customers should understand the various travel insurance policies available and choose one according to their requirements. They would need to keep in mind their destination, duration of travel, coverage limits and claims-servicing capabilities of the insurer while deciding on their insurance plan. General insurance companies offer various travel insurance products with many coverage options available at different premium amounts, medical cover limits across different age groups and trip durations. Most insurance companies offer policies with a maximum trip duration of 180 days per trip.

Various covers offered by insurance companies cover the obvious emergencies, such as protection for trip delays, trip cancellations, missed connections and loss of passport. There are also some innovative covers, such as protection for the unattended house back home, if it is burgled while the policyholder is abroad. It should be noted that most policies do not cover pre-existing ailments. The insured needs to declare pre-existing medical conditions before they travel. Most policies exclude acts of terrorism, war or war-like actions, mental disorders, stress, pregnancy, suicide, self-inflicted injury, anxiety, alcoholism, abuse of drugs and of HIV/AIDS infections.

Most insurers also have convenient plans for frequent flyers. An annual multi-trip insurance policy allows an insured to purchase a policy that will be valid for one year and any number of trips he makes during the year of coverage, provided each single trip does not exceed 30/45 days. This is a convenient option since the insured will not be required to purchase a plan each time they travel. In conclusion, to ensure a pleasant stay abroad, it is recommended that one should not just opt for travel insurance, but also, choose the plan from an insurance company with a good brand name, an international presence, a strong track record of transparency and good claims-handling and services capabilities.

(The writer is executive VP at Tata AIG General Insurance)

Source: FC Research Bureau BACK

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