Heading to developed country? Opt for larger sum insured, say analysts

Foreign travel is opening up gradually. The United Arab Emirates (UAE), a favourite destination of Indian tourists, started issuing tourist visas from the end of August. Many of those looking to travel to the United States are quarantining in a third country to overcome the ban on direct entry of Indian tourists. With the festival-cum-winter tourism season approaching, more nations are likely to relax their ban on Indian tourists soon.
 
The Covid-19 situation is still simmering in many geographies. If you plan to travel abroad soon, one way you can protect yourself is by purchasing adequate travel insurance. “Travel during these unprecedented times can cause significant stress and worry, so buy adequate insurance for security and peace of mind,” says Ravi Vishwanath, president, accident and health business, HDFC ERGO General Insurance.
 
Must-have covers
 
Most travel policies offer a few basic features such as coverage for medical emergencies, baggage loss, expenses related to trip delays and cancellations, and loss of passport. “In addition, make sure the policy covers you against personal accident leading to injuries or accidental death. The policy should pay a lump-sum benefit if such an eventuality arises. Also, given the current scenario, it must cover you for Covid,” says Amit Chhabra, head—health and travel insurance, Policybazaar.com.
 
Most travel insurance policies offer several add-on covers. “Coverage for bounced bookings of hotels and airlines, and travel extension cover can be availed by paying an additional premium. If you are buying a student travel policy, then look for covers specifically mandated by the university,” says Rakesh Jain, executive director and chief executive officer, Reliance General Insurance.
 
Don’t scrimp on cover amount
 
Since the cost of medical treatment in many parts of the world is much higher than in India, it is advisable to buy an adequate cover when you travel. “When trying to decide on the right amount of insurance, take into account factors like your age, length of stay, and the cost of treatment in the country of visit,” says Vishwanath.
 

Especially when travelling to developed-world countries, where the cost of treatment tends to be exorbitant, it is prudent to go for a high sum insured. Chhabra suggests a minimum cover of $100,000. One point that works in favour of customers who desire a high sum insured is that the rate at which the premium increases declines as you move into higher sum insured brackets.
 
Be claim compliant
 
Read the terms and conditions carefully when zeroing in on a travel plan. “Be well informed about policy exclusions. For instance, many companies do not cover accidents that occur while undertaking adventure sports,” says Vishwanath.
 
The purpose of buying travel insurance will get defeated if your claim is rejected due to mistakes that could have been avoided at the time of purchase. Disclose all the necessary details regarding pre-existing illnesses at the time of purchase.
 
“Keep the claims and assistance numbers and email handy, so that you are able to contact the insurer quickly. Also, report an incident as soon as it occurs and produce as much evidence as possible,” says Jain.
 
Be meticulous when filing a claim. Keep all the bills and necessary documents regarding expenses and medical treatments and make them available to the insurer for claim processing.