What is Travel Insurance – Definition, Types, Coverage and How it Works

Whether it is boating at the peaceful Venetian rivers or scuba diving at the depths of the Pacific Ocean, travel insurance is a necessary component which should not be forgotten. Despite its importance, only a few understand what it is, how it works, its types, and the coverages offered.

 

In this blog, we will explore all you need to know about the insurance offered to travellers.

 

What is Travel Insurance meaning?

Travel insurance is a risk management tool aimed at protecting the interests and investments of travellers. When travelling, you might exposed to varying degrees of risks, which can negatively hamper your travel experience.

 

By opting for the right travel insurance, you gain the ability to travel with confidence, and if anything happens, you have a fallback option in the form of insurance. While the primary benefit of insurance is the coverage it offers, there are also psychological benefits and even utilitarian benefits like being able to travel to certain parts of the world, which mandate having a travel insurance cover when visiting.

 

How does Travel Insurance work?

Travel insurance, like any other kind of insurance, is a protection offered for particular scenarios as coverage in exchange for an upfront payment paid to an insurer as a premium. This protection ensures that if the policyholder is exposed to the covered risks, they will receive a claim up to hundreds of times the initial amount.

 

These risks differ in terms of severity and frequency of occurrence. For example, something like losing checked-in baggage may not be very severe regarding financial loss but is quite common. However, getting into an accident can be highly severe but not as common. This is why insurance providers offer curated and specially designed plans covering a number of these risks and offering financial protection for them.

 

What are the types of Travel Insurance?

There are several types of travel insurance one can look out for when travelling. Here is a list of types, along with their descriptions for quick reference:

 

• Single trip- This is the most common type of insurance for travellers. This is a one-time policy covering a single trip.
• Multi-trip- This is a type of insurance which covers multiple trips during a set duration. As this duration is typically a year, it is often called annual travel insurance.
• Domestic- This type of insurance covers policyholders during domestic trips.
• International- This type of insurance covers policyholders during international trips. 
• Student- This is a long-term insurance covering student travellers abroad for their studies. 
• Family/Group- This type of insurance combines the policies for multiple individuals into a single plan. This helps in terms of convenience and is also more affordable in terms of cost when compared to purchasing individual plans for each member.

 

Other travel insurance types

In addition to comprehensive travel insurance plans, certain insurers also offer the benefits of travel insurance as a part of other policies. For example, Niva Bupa’s Aspire health insurance policy offers borderless benefits that provide coverage for world-class medical treatment anywhere in the world. In addition to this, several travel companies also offer travel through coverage that is less comprehensive than which just covers trip cancellation. Other than this, travellers can encounter different types of travel insurance while planning their journey

 

What does Travel Insurance cover?

There are a variety of coverages offered under travel insurance which you can avail of. Niva Bupa is a leading insurance provider in India and offers several coverages bundled into curated and specially designed plans. These plans provide comprehensive coverages and have additional coverages based on which one is chosen. 

 

Here is a list of some of the coverages which Niva Bupa offers travellers:

 

• Delay or loss of checked-in baggage
• Missed connecting flight
• Loss of passport
• Trip delay, cancellation, interruption
• Medical emergency (hospitalisation)
• Emergency outpatient treatment
• Medical evacuation
• Personal accident

 

This list, however, is not exhaustive, and there are several other coverages like health insurance, travel insurance offered by Niva Bupa bundled into the plans. So, refer to the policy document and the specific coverages listed when purchasing the plan to make travel decisions.

 

What does travel insurance not cover?

While travellers often consider what is covered, they should also consider what is not covered to understand the policy better and plan their trip accordingly. This is especially important as participating in activities that are excluded from the policy can lead to claim rejection, resulting in financial loss.

Here is a summary of exclusions for Niva Bupa’s TravelAssure policy. While this list is provided for reference, travellers are recommended to check out their insurance policy wording document for the complete list with exact wording.Treatment for any injury or illness resulting from nuclear or radiological emissions, war or rebellion, and specific acts of terrorism.

 

• Active participation in military exercises, war games, or engagement with the enemy.Any loss or injury due to committing or attempting to breach the law with criminal intent.
• Expenses for cosmetic or plastic surgery or any treatment to change appearance, including obesity or weight control programs. Unless in certain circumstances as listed in the policy document.
• Maternity expenses.
• Non-prescription or unproven drugs or treatments.
• The provision of fitting hearing aids, spectacles, or contact lenses, including optometric therapy, any treatment, and associated expenses for alopecia, baldness, wigs, or toupees, and medical supplies, including elastic stockings, diabetic test strips, and similar products.
• If the insured person is travelling against the advice of a doctor or is receiving or on a waiting list for specified medical treatment.
• Death, injury, medical condition, or disability resulting from suicide or attempted suicide, self-inflicted wound or illness, consumption of alcohol or drugs, and depression.
• Countries with travel restrictions for Indians.
• Medical tourism.
• Damages due to adventure sports unless part of coverage.
• Expenses related to any admission specifically for diagnostics and evaluation purposes that are not related or incidental to the current diagnosis and treatment.

 

How much does travel insurance cost?

There are several factors which influence how much travel insurance coverage costs. These factors range from the age of the traveller to the number of travellers, trip duration, travel destination, coverages opted for, plan chosen, sum assured opted for, etc. However, while all of this impacts your travel insurance cost, Niva Bupa offers affordable travel insurance coverage for all of your needs, allowing you to explore the world at your own pace at an affordable price.

 

Conclusion

Armed with this knowledge, you can embark on your journey confident that you and your loved ones will be protected when travelling. So ensure your financial security and the well-being of your family by opting for the right insurance when travelling.

 

FAQ

 

1. What is the insurance coverage definition?

Travel insurance coverage is the amount of risk of liability which is covered by the insurance provider. Insurance coverages are available for a number of different risks which can be opted for to secure financial protection from them.

 

2. How do you calculate travel insurance premiums?

Travellers can calculate travel insurance premiums by visiting the Niva Bupa website, filling in their details and requirements as well as choosing a preferred plan to preview the premium prices. Doing this lets you evaluate the most accurate premium price for your travel insurance coverage.

 

3. How to get travel insurance in India?

Getting travel insurance in India has never been easier. Online portals like the one on Niva Bupa’s website enable travellers to buy travel insurance in just a few minutes by submitting a few documents and filling out a form. You can check out the portal by visiting Niva Bupa’s website and clicking Travel Insurance in the header.

 

4. What is the benefit of travel insurance?

Travel insurance is a risk management tool that travellers can use to financially protect themselves from travel-related risks, thus enabling them to explore the world with confidence and peace of mind. In addition to this, certain countries mandate travel insurance to get a visa for entry, and it is also good to have to ensure quality medical treatment in certain countries.