Travel and Holiday Safety Insurance: Why is it required?

The globalized economy has shrunk the world with its connectivity both virtually and physically. Where once upon a time it was a luxury to fly from country to country, today for most people, who are frequent travelers, flying or travelling is an everyday matter. People travel for business reasons, to vacation with their families, for purposes of treatments or to visit their kith and kin.

However, Traveling per se is not always a wonderful experience. There are innumerable perils that a business or leisure traveler goes through depending on the destination, duration, and other factors. Consequently, it is always wise to have a travel insurance policy for the duration of travel / stay at a foreign destination.

So what exactly does a Travel Insurance cover? While one can procure customized travel insurance policies to cover a wide variety of risks, most travel insurance providers cover an optimum number of common risks such as: 

• Medical emergencies like accidents, sickness and surgical procedures
• Sudden or emergency evacuation from troubled areas
• Cancellations and interruptions to a trip’s schedule
• Accidental death, accidental injury or accidental disability benefit
• Expenses for an overseas funeral or transportation of corpse to the home location
• Lost, stolen or damaged baggage
• Lost, stolen or damaged official/personal travel documents
• Emergency replacement of essential items in cases of delayed baggage
• Missed flight(s) due to sudden scheduling/rescheduling by airlines
• Travel delays due to weather conditions
• Hijacking, Kidnapping, acts of crime or terrorism

General Exclusions

Most travel insurance providers do not cover:

• Pre-existing medical conditions such as asthma, diabetes, heart, liver or lung diseases
• Visiting destinations that are affected by war or terrorism
• Visiting destinations that are prone to natural disasters like floods, hurricanes etc, at the time of travel
• Ailments, injuries, illness and hassles with local law enforcement agencies for substance abuse

So what does a traveler do in the above situations? That is where the facility of optional coverage comes into the picture.

Optional coverage

One could go in for one or more additional items at an extra premium. These are:

• Pre-existing ailments such as asthma, diabetes, heart, liver or lung diseases
• Sports and adventure activities that are risky such as skiing, scuba diving, parasailing, rock-climbing, mountaineering, motorbike racing or driving, etc
• Travel to high risk countries that are affected by war, civil war, natural disasters like volcanoes, and terrorism hotspots
• Additional AD&D (accidental death and dismemberment) coverage
• Insolvency of third-party agencies like airlines, hotels, tour operators etc
• Acute onset of pre-existing conditions: In addition to covering pre-existing ailments, one could also cover the unexpected onset of these conditions, despite taking medication and despite being given clearance by a doctor before the travel

Managing Risk

While the travel insurance policy acts as a safety net, it is advisable for all travelers to manage some of the risks associated with travel, so as to minimize claims and damages. Some of the aspects that can be taken care of are:

• Road Safety: Taking care while driving or using a vehicle, in the place to be visited
• Crime: Avoiding any situation that can invite crime or criminal attention on oneself
• Illness and Injury: Taking care of one’s health and preventing any situations that can cause injury
• Discrimination and Disability Access: Being aware of the local culture and possible causes of discrimination on various grounds

As a full-service insurance brokerage firm, Allied Brokers understands the risks that travelers face while embarking on a journey. Which is why, we provide travel and holiday safety insurance plans with several levels of gradation to factor various requirements of our customers.