On wings and a cover

INSURANCE ABROAD: Mediclaim is the perfect way to enjoy your vacation without any financial stress.

The summer holiday season is soon going to begin. And all of us are looking forward to that break when we go out with our families for a vacation in India or abroad or a trek.

All the travel plans are well laid out with ticket bookings, hotel reservations etc all in place. However, like everything else, travel does involve an element of risk. Especially when you come across rough weather abroad. Medical treatment abroad is expensive and it becomes all the more harsh if one has to pay in foreign currency. This is where travel insurance comes in.

Eligibility for Travel Insurance:
It is available up to the age of 70 years and for a maximum period of six months. The policy, however, needs to be purchased before leaving the country.

For travellers above 40 and in some countries 60, you are required to submit following medical reports with the visa form:

1. ECG

2. Fasting blood sugar or urine strip test

(These reports are required if the travel period exceeds 60 days and above.)

However, in case the traveller is unable to submit the above medical reports, the risk cover comes down to $10,000.

Benefits: Here are the salient features of travel insurance

Medical Cover*
Total Amount: $50,000 to $250,000
Covers: Medical cost due to illnesses or accidents, including out-patient and in-patient medical expenses, medical aid, therapies and diagnostic test. It also covers medically evacuation cost back to India.

Daily Allowance in case of Hospitalisation**
Maximum Amount: $25 per day for a maximum of 5 days,
Covers: Compensation for hospitalisation for more than 2 days.

Dental Treatment
Maximum Amount: $250
Covers: The cost of acute anaesthetic treatment to natural teeth due to an injury.
Repatriation of remains: Maximum Amount of $7,000:
Covers: The expenses of repatriating the remains back to India.

Personal Accident
Maximum Amount: $15,000
Covers: Compensation paid in case of death or permanent total disability.

Personal Liability
Maximum Amount: $100,000
Covers: Compensation for damages paid to a third party, resulting from death, injury or damage to health or property that is caused involuntarily by the insured.

(Notes: * Deductible of $100. This deductible is applicable on per illness (complete treatment) basis and not on per visit to the doctor/hospital. ** Deductible of $50. *** 2 days deductible.)

Benefits

Spend for medical bills in foreign currency.

Covers for accident of sponsor travel of family visit in case of hospitalisation of insured.

Entire family can be covered under one policy.

Major exclusions

All pre-existing disease/illnesses are not covered (known and unknown).

Travelling against medical advice or for medical treatment including routine check-up.

First $100 of all claims is to be borne by the traveller.

In case of health cover
Original bills, vouchers, reports and discharge summary. These documents must mention:

(i) Name of the treated
(ii) Type of illness
(iii) Details of medical treatment provided
(iv) Dates of treatment Prescriptions and original bills and they must:
(i) Clearly show the medicines prescribed
(ii) Price and the receipt stamp of the pharmacy

You also need to attach a medical statement from a physician indicating:
(i) Cause of illness
(ii)Reason for necessity of the transportation

There are many companies in the market such as Bajaj Alliance, ICICI Lombard, New India Assurance etc. Thus, precautionary measures taken initially for a small amount of premium could have a great benefit to one's own self and other family members. Before or after the journey, one has to have health insurance in place.

(The writer is head of financial planning at Sykes & Ray Equities and can be contacted at kairav@sre.co.in )