Did You Know About These 7 Types of Travel Insurance?

 

Whether going on a vacation, to study or for business, a travel insurance policy is necessary for every trip. For those unaware, travel insurance, like any other type of insurance, offers financial protection to the policyholder from certain risks. 

These risks, mainly, are related to travel and arise from unexpected circumstances. There are numerous kinds of risks which one might be exposed to when travelling, with these risks ranging in terms of severity and frequency. 

In this article, let us explore the different types of travel insurance, the coverages offered and how to choose the best travel insurance. 

What are the types of travel insurance?

Here is a list of seven types of insurance one can opt for in India; however, not all of these types are offered by every insurance provider. This is why, based on the traveller’s specific requirements, they check for a particular insurance provider and plan accordingly. 

1. Single-trip

This type of insurance covers a single, one-time travel. This is the most common type of insurance offered to travellers. 

2. Multi-trip

This type of insurance covers multiple trips within a set duration. Typically, this duration is an entire year, often called ‘annual multi-trip insurance’.

3. Domestic 

This type of insurance covers travellers who are travelling within their own country. 

4. International 

International Travel insurance covers travellers going on a trip outside their country. 

5. Student 

This type of insurance covers students who are looking to travel outside India. 

6. Senior Citizen 

This type of insurance covers people, especially those over 60, and offers exceptional coverage for them. 

7. Family/Group

When travelling with family or a larger group of people, it is difficult to purchase a policy for every individual member to choose plans and remember to pay the premium. This type of insurance provides a common plan for the entire group with a discounted premium. 

What does travel insurance cover?

When opting for insurance when travelling, it is essential to consider the coverage offered. Here is a list of some common risks and coverages to protect travellers from provided by insurance providers.

• Loss of checked-in baggage

• Missed connecting flight

• Delay, interruption or cancellation of a trip

• Medical emergency

• Personal accident

• Pre-existing medical conditions 

• Loss of passport

How to choose the best travel insurance policy? 

Several factors need to be considered when choosing an insurance policy. Here is a list of some of the most important ones. 

• Coverages offered- One of the primary factors to consider when choosing insurance is the coverage provided. 

• Premium cost- Considering the price-to-value ratio by comparing the premium cost to the sum insured available is essential. 

• Travel destination- There are certain countries which insurance providers do not cover, and it is essential to consider these when planning to get insurance. 

• Exclusions- The exclusions are specific circumstances where they will not be approved if the policyholder incurs any losses or suffers from an injury. 

• Claim settlement ratio- The claim settlement percentage indicates how reliable an insurer is in approving claims. Higher claim settlement ratios are always preferred. 

Conclusion

There are different types of insurance available to travellers for different kinds of circumstances. Whatever the reason you wish to travel, there is a type of insurance to protect you. Based on the above factors and personal experience, I recommend that travellers consider Niva Bupa. They are a leading insurance provider in India and offer comprehensive plans for affordable prices.