Taking travel insurance can be your ticket to a safe and peaceful holiday.

   Its summer and time to holiday for many. International destinations are fast catching up as options, thanks to affordable flight fares and higher disposable incomes. The number of people who travelled to foreign destinations at six million from India. This number is likely to touch the 10-million mark by the year end. If you are one of those, read further.
   One of the must-haves before you embark on an international travel, is travel insurance. What does travel insurance cover? Like most other mediclaim/health insurance covers, travel insurance covers your expenses on medical treatments. It is similar to cashless service available in case of a mediclaim policy. So you pay for your premium in India in rupee denominations to meet the cost of the medical treatment at the foreign destination.
   It’s mandatory to take an overseas insurance in before visa application in all of the 15 Schengen countries, which include France Germany and Finland. This cover could really come in handy as the cost of medical treatments in the US as well as Europe is steep. When you travel to the US or any European country, you are moving to a higher price index zone. So the local mediclaim policy will not cover you once you cross the Indian peripheries.
   And the medical costs are higher outside India. For instance, an appendix operation in India will cost around Rs 50,000 while a similar operation may cost you around $200,000 in the US. America is the most expensive place for medical treatment.

Beyond health cover

Now let’s imagine a situation where you land at Chicago and you lose your passport while traveling. That’s the perfect beginning for a disastrous holiday. For all you know, you may not be able to return back home. And typically, by choosing a relevant plan, you could have passport and baggage loss covered as well.
   Apart from medical and sickness, travel insurance also covers you against a range of mishaps such as personal accident, loss of checked baggage, loss of passport, personal liability, trip delays or missed flights, financial emergencies, including house burglary while you are away on a holiday.
   Once you lose a passport, you to have to visit the concerned consulate at least three to four times. Additionally, you may have to click photographs over and above the application fee. These unexpected inconveniences have costs attached, which these insurance policies cover. Similarly, you could break a flower vase in a hotel, which could cost you $500. The personal liability clause in the travel insurance cover looks after that aspect.

Premium calculation

It depends on your age, geographical coverage for travel, sum insured and the duration of stay. Depending upon these factors, the premiums can start from Rs 350 onwards. However, the frequent traveler should take an annual policy. It will be lighter on the wallet. Also, if you have booked your travel through an operator, you can check with them for the overseas insurance. Usually, they have tie-ups which may work to your benefit. If you go for an individual customized policy, it commands a higher premium.

Things to look out for :

• Do you need a high sum?
  You may be cautious and sign up for a cover of $1,00,and 000 or above. But there are sub limits and caps on medical charges as well as checked baggage or lost passport. So read the fine print. Some policies cap the claim amount to be paid for baggage loss at $500 or even lesser, irrespective of the sum insured. Also, most insurance policies have a clause wherein the first $100 incurred during the course of an emergency has to be borne by the insured.



• Age Factor
  Look at the age limit. Certain insurance companies insist on medical reports in case of those over 70.
  
  
• Exclusions
  Some policies do not cover adventurous sports, flying schools and trainees going on sea. There are separate policies for adventurous activities like bungee jumping, parasailing or deep-sea walking. Insurers do not cover even preexisting illnesses, such as mental disorder or war-like situations. Other common exclusion includes individuals who go overseas for a medical treatment.
  
  
• Claim settlement
  Paperwork for claim settlement varies as per the case. For medical reasons, original bills have to be produced. In case of claims for loss of baggage, you have to submit a letter from the airlines confirming it. Insurers claim that they process the claims by 10 days. It’s worth taking travel insurance. After all, it could be your ticket to a safe and peaceful holiday.