Travel insurance: Ensure you’ve got the right cover

Unpleasant situations on a trip can be nightmarish when navigation them on a strange land. While travellers have woken up to the importance of travel insurance, they may still be blindsided to the appropriate cover they need to seek to tackle different eventualities. A plain vanilla travel insurance will not do the job when caught in specific predicaments. So it is important to research and pick the right policy and not be caught unawares by a mis-sold travel cover that is not tailored to variant needs.

Here are some scenarios that need to be anticipated and covered:

Pre-existing diseases: Travellers’ conditions such as diabetes or hypertension need to be accounted for while travelling abroad.

Senior citizens: Travellers aged 60 or above who might also have pre-existing diseases.

Adventure & extreme sports: Travellers with a penchant for sports and activities that might pose a risk to their life & health.

Geo-political unrest: Travellers who might encounter geo-political unrest or terrorism when on a trip

Emergency trip extensions: Travellers who might need to extend their stay on a trip due to an unforeseen situation.

Travel delays & missed connecting flights: Travellers who might face unprecedented delays on their trip and end up missing their connecting flight or face other interruptions.

What is mis-selling?

It simply refers to the unethical practice of selling a product to customers that proves unsuitable for their needs. This can result in the customer paying for unnecessary or inadequate coverage for their needs. It is also important to note the pivotal role played by the Insurance Regulatory and Development Authority of India (IRDAI) in addressing this concern by mandating insurers deliver transparent policy-related information to potential customers.

Some ways of mis-selling:

Exaggerating benefits of a policy
Downplaying the policy’s limitations
Distorting facts and presenting misinformation

Failure to disclose crucial information Selling features that are not required

Why does it happen? 

Unlike the kind of time and effort invested in trip planning, very little effort goes into buying travel insurance. Often convenience triumphs and people either go for bundled deals or simply trust their travel agent’s recommendation. This lack of awareness can expose them to the potential risks especially with the scenarios mentioned above. Travellers must familiarise themselves with their travel policy to avoid being duped.

Tips when purchasing travel insurance 

Disclose all information 

To ensure your claim process is smooth and hassle-free, it is of utmost importance to share accurate and comprehensive information. For instance, disclose your medical history and check if your pre-existing condition will be covered in the policy. If yes, what will be the extent of coverage? Are there any exceptions to the rule? Similarly, if you plan to indulge in extreme sports or adventure, check the extent of coverage in case something unfortunate strikes. For thrill-seekers and adventure travelers, traditional travel insurance policies may not cover activities like skydiving, scuba diving, or mountain climbing. Specialised adventure and extreme sports coverage can provide the protection you need for these high-risk activities. Neglecting any such information may result in disagreements or even rejection of claims. 

Carefully evaluate your needs

Travel insurance must come to your rescue when you need it. For that to happen, you first need to go over all your special requirements and evaluate if they fall under the coverage umbrella. If you are required to travel to a country that’s prone to political unrest or terrorism, check what all will be covered under the policy and what doesn’t make the list. Similarly, if you have senior citizens traveling, a regular plan may not be the best option for them. There are plans specifically designed with benefits meant for senior citizens. Like coverage for pre-existing diseases, a longer stay and no sub-limits. Pick a policy accordingly.

Preparing for unanticipated situations

Not everything can be known before-hand, scenarios like unexpected travel delay or missing a connecting flight is not something you know already. Travel insurance can provide compensation for additional expenses incurred due to these delays, such as meals, accommodations, and alternative transportation arrangements. It ensures that you can continue your journey with minimal disruption.

How to avoid falling prey? 

When purchasing travel insurance, it is crucial to ask the right questions regarding the coverage and exclusions. Before finalising your policy, always check the trusted online aggregators and plans listed with verified information. Avoid choosing a plan with unnecessary add-ons that do not benefit you. Additionally, review the inclusions of the travel insurance plan and be certain that you are not paying for anything you do not require. 

(The writer is Business Head - Travel Insurance, Policybazaar.com)