Why Secure Your Next Trip with Travel Insurance During COVID-19?

September 20, 2021 Mutual Fund

The pandemic has brought many challenges in the global travel industry. To stop the spread of the Covid-19 virus, many countries were under complete lockdown, which led the travel industry to become one of the most affected sectors during the pandemic. Although more and more countries are slowly opening their doors for travellers with an extra health and safety precautions, the primary responsibility still lies with the travellers. The travellers need to do their bit by following all the safety guidelines and securing themselves with travel insurance. This article will inculcate what travel insurance is and why you should buy travel insurance during COVID-19.

What is Travel Insurance?

Travel insurance offers coverage against several risks during the journey. It extends its coverage to any disruptions in travel, such as loss of passport, flight delays or cancellations, personal injuries, etc. Without the financial protection of travel insurance, such unforeseen losses can be a drain on your pocket.

There is no restriction in travel insurance on the type of transport or the destination you choose, as long as you provide all the correct details while purchasing a travel insurance policy. Although travel insurance is more preferred for travelling abroad, you may opt for it for international as well as domestic travels. You should buy travel insurance from the day your journey begins till the day you come back home.

What are the types of Travel Insurance?

There are various types of travel insurance available in India. Choosing the best-suited travel insurance for your requirements is essential to ensure you to get the maximum benefits at a lower premium. Here are some of the common types of travel insurance you can choose from:

1. Individual and Group Travel Insurance:

   Individual travel insurance is the basic type of travel insurance that most people buy if they are going on a vacation alone or with friends and family.

   A group travel insurance is advisable when a group of employees is travelling for a business trip. It can be bought by a company for its employees at an affordable premium.

2. Single and Multi-trip Travel Insurance:

   If you are a frequent traveller, opting for multi-trip travel insurance is a wise choice. It can cover all your trips during the policy period. So a policyholder has to buy this policy only once a year, and the policy extends its coverage to their multiple trips until the expiry date of the policy.

3. Domestic and International Travel Insurance:

   As the name suggests, if you are travelling abroad, international travel insurance is advisable. It is necessary to provide the details of the country you are visiting since the premium varies for each country.

   While travelling within the country, you should go for domestic travel insurance as it takes care of all the uncertainties that can arise during your travel within the country.

4. Specific Travel Insurance:

   Almost all the insurance companies offer specific travel insurances based on your particular requirements. For example, students studying abroad should opt for student travel insurance, covering their entire course period under one plan. Another popular specific travel insurance is senior citizen travel insurance, which is advisable for people above the age of 60. It provides special features, such as a cashless claim facility, dental coverage, etc.

What is covered under Travel Insurance?

To know the exact risks covered under a particular travel insurance policy, make sure you read the list of inclusions from the policy document. Moreover, insurance companies offer some additional benefits in the form of add-ons, which you may purchase separately for a nominal increase in the premium. Here are some of the common risks covered under travel insurances in India:

• Personal Accident Cover, which covers the policyholder's death, and permanent disability

• Medical expenses arising out of an accident or sickness

• Loss of passport

• Loss of checked-in baggage

• Baggage delay

• Flight delay

• Flight cancellation

• Home burglary while the policyholder was on a trip

• Emergency evacuation

• Repatriation of remains

• Hijack

• Missed connection or departure

COVID-19 and Travel Insurance:

With the spread of coronavirus, travellers were surrounded by many uncertainties, but unfortunately, those uncertainties were not covered under their travel insurance plan. Today, many insurance companies offer coverage to the uncertainties arising out of COVID-19 during their travel period.

One must check before buying the policy if the COVID-19 is mentioned in the list of inclusions. Since some insurance companies have put COVID-19 in their list of exclusions, which means they will reject any claim arising out of COVID-19. However, most companies these days are offering COVID-19 coverage built into their travel insurance.

Why Travel Insurance is an absolute necessity during the COVID-19 pandemic?

• Travel Insurance is becoming a mandate in many countries

  Earlier, travel insurance was mandatory only in a few countries, like Australia and Schengen. However, with the spread of coronavirus, more and more countries are making travel insurance along with the covid-19 cover mandatory. For example, like many other countries, Costa Rica has made travel insurance (that covers at least $ 50,000 of medical expenses) mandatory due to COVID-19. Though many countries have still not made any compulsion, it will be advised by travel experts, travel agents, and even the government to buy travel insurance if you need to travel during the pandemic.

• Changes in restrictions

  Although many countries are welcoming travellers there is no guarantee of the future. The government has to tighten or loosen the restrictions based on the situation. There are chances that you visit a country, and the government of the visiting country announces the lockdown. No matter how good you are at planning your trip, you cannot avoid such unfortunate incidents. Travel insurance can compensate you in such cases of trip cancellations.

• The fear of the virus

  Even though everything is getting back to normal, people are taking time to get back to their normal because there is still fear of the infection of the virus. International flights are usually of long hours, and people fear of getting in contact with other people. The fear is real because, despite the use of masks, PPE kits, and sanitisers, there is a chance that you get infected with the virus. Your travel insurance will keep you covered in case of a medical emergency arising out of COVID-19.

• Airlines need time to get back to their capacities

  Though airlines are working quite fine, they are still not back to their full capacities. Airlines are working with reduced staff and reduced operational scale, which is why travellers face problems like delays in check-in baggage, flight delays, lost luggage, etc. You can tackle such issues by opting for a travel insurance to cover all such issues pertaining to airlines.

To Conclude:

The pandemic has made us realise the importance of having travel and health insurance, more than anything else! Hence, Travel insurance is the first thing travellers need to check for when they plan their next vacation. Moreover, you can buy travel insurance online from the comfort of your home. Make sure you read all the terms and conditions, lists of inclusions and exclusions, and policy exemptions, etc., beforehand to avoid any unpleasant surprises during your much-awaited vacation.

This article first appeared on PersonalFN here