What is Travel Insurance?

Travel insurance is short-term insurance available specifically against travel-related emergencies and expenses. International travelers will almost always want to obtain travel insurance because it covers medical expenses, but even other travelers may find it useful depending on their plans. Often grouped under the term "Travel Insurance" is trip cancellation insurance, travel medical (international health insurance), evacuation-only plans, and flight insurance (temporary AD&D).

Basically, using insurance begins as you encounter any problem after you've purchased coverage and before or during a trip.. a problem that puts your plans at risk and/or that threatens considerable cost beyond what you would normally encounter. (This won't include coverage for essential steps on your trip that you failed to arrange for yourself, e.g., lodging, meals, fully adequate connection times between flights.)

Once you know the details of the problem (and any cost), you promptly contact the claims people for the company that issued your policy. You explain the situation, and they instruct you on what to do for a covered problem.

• For problems with modest cost that are covered, you'll likely be told to pay the costs (preferably by credit card), keep all supporting bills/invoices/receipts, and to file a claim with the company after your trip is over.
• For problems with great cost (e.g., overseas medical evacuation can cost a fortune), the insurer may do the same...though such costs can easily exceed the maximum "draw" allowed on your charge card. Better travel insurers also have "preferred providers" in numerous countries, one of which may be able to help you at lesser cost than others...or even provide the service you need and directly bill the insurer.
• If you do not have the means to pay for what you need (and then wait for reimbursement), and no preferred provider can be used, some insurers will transfer funds to help. They do so only after being satisfied about costs encountered, and that they are sending the funds to and for someone who is covered. You purchase travel insurance for international trips through an insurer in your country of residence, which means the country to which you'd want to be evacuated to or return to after a serious medical emergency and/or the country you'd need to travel to if a family member became very ill (these are assumed to be the same country).

If travelling within your country of residence, you can buy cheaper domestic travel insurance within that country, but you may decide that you do not need it at all if you are willing to risk losing costs associated with cancellations and so on. This may be true especially for Canadians travelling to the US where more options may be available after having crossed the border.

You can obtain travel insurance through your travel agent, your normal insurers, or any one of a number of specialist travel insurers. Travel agents sometimes sell overpriced policies as you are something of a captive audience. Shop around. Because travel insurance policies are somewhat interchangeable, there are a number of websites where you can compare policy costs. This article does not list specific insurers as they are both numerous and country-specific where based.

Now you can also obtain a Travel Insurance policy online too. In India, There are many companies are offering Travel insurance along with many different additional covers like Lost of Baggages, Loss of passport too. In some of companies, HDFC Ergo, Shriram General Insurance also offers the Overseas Travel Insurance.

Sometimes you may be insured via an existing deal. Some credit card companies insure any trip you take as long as you buy the tickets on a particular credit card. Business travellers may be covered by a company-wide insurance policy, but if you intend to take any side trips or have a personal holiday, check the coverage: usually personal holidays on the side must be of a fairly short length to be covered by a business policy. Be sure to check any "existing deal" carefully and ideally get confirmation in writing of your coverage. Credit card insurance deals, for example, often offer just basic coverage, and may be invalidated for travelers who paid travel deposits in cash rather than using the card.

If a member of a travel association or large professional group, you may find that it offers or endorses an insurance provider that provides extra coverage or better rates. Failing that, you may find coverage through on-line search. But take care that the company has a good reputation, e.g., from friends/family that have had to file claims, or local travel agents.

Medical expenses coverage

Usually, whatever standard health insurance you have will pay only claims for medical care in your country of residence. Also, even if your medical care is usually paid for by your government, this usually won't extend to medical costs incurred in other countries. Some countries with universal healthcare (such as Canada, UK, Australia) might have reciprocal agreements with other countries with similar health care systems. However, even if a country extends its subsidized medical care to tourists, what's provided may not be up to your standards or needs.

Unless you are covered by a reciprocal arrangement or your regular health insurance covers international medical expenses, you may have to pay all medical expenses incurred while traveling out of pocket or through help from your insurer; in many cases, quality medical care can be very expensive. Therefore, all international travelers should be certain that they have medical coverage via a travel insurance policy that covers medical expenses they unexpectedly incur on their trip. Unless you'll not be far from home, you should also opt for medical evacuation coverage discussed below.

When considering a travel insurance policy's medical coverage:

• Check the precise details of medical care that you will be able to claim. If your destination has a tiered health system with, for example, public and private hospitals, are you able to use a private hospital?
• Does your insurer offer 24 hour contact with emergency advice? These hotlines allow an insurer to assess a situation and give some advice about medical care as quickly as possible. Your insurer may have local knowledge that you do not have.
• If you take part in any adventure sports or activities like alpine skiing or scuba diving, check your policy for medical coverage related to accidents that happen while you're doing that activity and whether or not you need any formal training to be insured. If you can't find a general travel insurance policy to cover your activity of choice, you may be able to take out a separate policy from an insurer specializing in that activity.
• Is there coverage for illnesses that become apparent after your return? International travel insurance policies usually exclude medical costs incurred in your country of residence even if the costs stem from an injury or illness that happened while you were travelling. Medical costs in your home country are assumed to be covered by your normal healthcare arrangements.
• Does the policy have adequate coverage for dental expenses? Some policies provide substantial amounts for general medical expenses, but only very small amounts (for example, only $500) for dental expenses.

Making a claim

Most insurers expect you to pay smaller medical expenses and all other expenses you intend to claim for yourself, and later apply for reimbursement. They will often pay large medical bills, such as those arising from hospitalization or evacuation, directly. If you are hospitalized, they should be informed as quickly as possible, since they need to agree that the treatment and associated costs are necessary. There is usually a clause stating that they will refuse to pay for medical assistance that they deem unnecessary. If you are incapacitated, your travel companions or contacts at home will need to deal with the insurer; make sure they have contact details. Many insurers have a 24-hour hotline that you can call. Often, this service is an advice hotline and the insurer may transfer you to their professional staff or those in your area to advise you about medical facilities and services available. If you or a travel companion can first inquire locally about medical capabilities, that can be useful information.

Do not arrange your own evacuation unless your life is in danger and you or your companion(s) cannot talk to the insurer first. As above, your insurer may have fully-effective, alternate means to arrange what you need and avoid costs. They won't pay (or pay fully) if evacuation is otherwise self-arranged. In case of unavoidable self-arranged evacuation, go no further than is necessary to obtain proper care, not (in most cases) all the way home.

For anything that is likely to result in a large claim, inform the insurer as soon as possible.

All claims should be filed promptly. Most insurers have a limited period of time after a given event for which you can claim associated expenses...usually no more than a year.

Claims will need to be documented. Where you are claiming expenses, you will need receipts. If you're claiming for a theft, you will need a copy of the police report made when you reported the theft to the police and evidence of the value of the item...possibly proof that you owned it in the first place (proof of the original purchase will cover both requirements).

Finally, don't file a claim for reimbursable or (to be) reimbursed costs, or avoidable costs.

• Your trip insurance is secondary coverage for your trip. Your credit card (if used) may provide some coverage, you need to ask for and may receive refunds from some providers for all or part of the costs of tours, lodging, etc., that you had to cancel.
• You have a duty to diligently avoid unnecessary costs as you arrange for the premature end of your trip, e.g., notify tour operators/hoteliers of your circumstances and cancel what you can to obtain all possible refunds, don't use (or make claims for) five-star hotels and first-class air for the rest of your group if that was not already part of your trip.