Travel Insurance

How does Travel Insurance work? What should one consider while taking Travel Insurance?
Travel insurance is also known as trip insurance, trip cancellation insurance or trip interruption insurance and it protects a traveler's vacation cost against cancellation, interruption and delay and will also provide medical, lost or damaged property coverage.

Travel insurances can usually be arranged at the time of booking of a trip to cover the exact duration of that trip or it could be a more extensive, continuous insurance that can be purchased from insurance companies or banks and which will cover all traveling during the period for which the insurance was obtained.

The most common risks that are covered by travel insurances include:
• Cancellation 
• Curtailment 
• Delayed departure 
• Loss, theft or damage to personal possessions and money including travel documents 
• Delayed baggage and emergency replacement of essential items 
• Medical expenses 
• Emergency evacuation/repatriation 
• Overseas funeral expenses 
• Accidental death, injury or disablement benefit 
• Legal assistance 

In addition, separate insurances can be purchased for specific costs such as:
• high risk sports like skiing or scuba-diving 
• travel to high risk countries (e.g. war or natural disasters) 

Most of the companies will allow you to review the policy for 10-20 days following purchase. If you cancel your policy within that period, you will receive a full refund except for a small non-refundable processing fee charged by the company.

What to look for when buying travel insurance:
o Insurance Coverage – Make sure that you get the coverage that you need. Do not pay for more for more than what you will need but at the same time do not buy less coverage in order to save a few dollars. Remember that you will be in unfamiliar territory and if something goes wrong you will need the security of your insurance to fall back on. Pay particular attention to medical cover and legal aid. These can be outrageously expensive overseas. Another important aspect to look for is how much the company offers for baggage cover in the event of theft or loss. You will pay less if you do not insure your baggage, but you do risk losing all your possessions without any compensation. 
o Kinds of Activities – When you are traveling you will have the opportunity to get involved in some exciting activities. Many of these activities come coupled with danger and risk. It is therefore important to consider this factor when you are buying travel insurance. If you are likely to take part in high risk activities, consider buying insurance coverage for them. Such high risk activities could include: bungee jumping, sky diving, scuba diving, river rafting, trekking at altitude, and horse riding. 
o Value for Money – Although it might be tempting to go for the cheapest option, it might not be the right one for you. The difference in prices from one company to another might be huge but you should consider what you need and if you are getting value for money. 
o Excess fees – This is something that you should watch out for. Some companies cut the cost of insurance by increasing the amount of excess you pay on any given claim. 
o Clauses – Make sure that the company you decide to use covers you completely. Pay particular attention to pre-existing medical conditions coverage. Read the terms and conditions and the fine print before you buy so that you are not surprised when you need to claim.