Going abroad? Declare pre-existing disease even when buying travel policy

Take country, trip duration, and your age into account when deciding on the sum insured

Undeterred by surging airfares and other travel costs globally, a large number of Indians are set to visit international leisure destinations over the next few months. The removal of Covid-related restrictions in many countries, and the desire on travellers’ part to make up for lost opportunities are the key demand drivers. Before heading abroad, travellers must buy a comprehensive insurance policy with an adequate sum insured.

High financial risk

A traveller who heads abroad without a travel policy having a substantial sum insured exposes herself to severe financial risk. Says Raghavendra Rao, chief distribution officer, Future Generali India Insurance: “If you fall ill in the US or Europe during your travels, you would have to foot a hefty medical bill. Shenzhen countries don’t even issue a visa unless you have purchased a travel insurance policy.”

After the pandemic, more countries have made its purchase compulsory. “Earlier, it was not mandatory to buy travel insurance if you were going to a Southeast Asian country like Vietnam, Thailand, or Singapore, but now they have all made it compulsory,” says Manas Kapoor, product head-travel insurance, Policybazaar.com.

Must-have features  

Any policy you buy must offer four categories of coverage. The foremost is coverage for medical expenses: hospitalisation, outpatient department (OPD) coverage; evacuation in case of illness or a catastrophic event like a tsunami or earthquake; dental treatment; and coverage for bringing mortal remains back to India in case of demise.

Second, the policy must cover loss of baggage or delay in its arrival.

Third, it must offer compensation for missed, rescheduled or cancelled flights, loss of passport, and so on.

And fourth, the policy should offer a few miscellaneous coverages such as home burglary, insurance for a pet left behind in India, bail bond, and so on.

While evaluating different insurers’ policies, do so on these four key parameters.

In addition, buy a personal liability cover, especially if you are travelling to the US or Europe and plan to drive a rented car. “This cover will protect you against any damage you may cause, which could result in a demand for compensation,” says Rao.

Don’t scrimp on sum insured

Take into consideration three factors while deciding on the sum insured. “One is the country you are travelling to. Costs tend to be very high in the US or Europe, hence you need to buy a higher-value cover. If you’re travelling to an Asian country, you can probably manage with a relatively smaller cover. Age and the number of days for which you are travelling are other key factors you should take into account,” says Rao.

If you are above 60, going to the US to spend time with your child, and planning to stay for more than three months, Kapoor suggests buying a cover worth $ 5 lakh to $ 10 lakh. A 35-40-year-old going to the US can manage with a cover of $ 1 lakh if her duration of stay is less than one month; $2-2.5 lakh if it is one to three months; and $ 5 lakh if it is more than three months.

A 35-40-year-old going on a five-day vacation to the Maldives could manage with a $ 50,000 cover.  

Buy retail, not group policy  

Many travellers don’t disclose their pre-existing diseases at the time of purchase. “Your premium won’t increase if you reveal a pre-existing disease, but not declaring it could result in your claim getting rejected,” says Kapoor.

Many travellers buy the travel insurance policy from the agent from whom they are buying the ticket. Often, these agents give them a group insurance policy. “Ideally, you should buy a retail policy, which tends to be richer in coverage and benefits,” says Kapoor.

A travel agent may also not be able to offer you multiple options, which an insurance distributor can.

Buy the policy much before your trip. “If you leave the purchase for the last minute, you will not have the time to evaluate several policies and then make an informed purchase,” says Rao.