Travel insurance is a type of insurance product designed to cover the costs and losses associated with unexpected events incurred while traveling, either internationally or domestically.
In this episode of ET NOW’s The Money Show, News Editor Kavita Thapliyal discusses with Manas Kapoor, Product Head of Travel Insurance, Policybazaar.com. regarding the types of travel insurance, how to select the right kind of travel insurance policy, and other aspects of it.
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What are the types of travel insurance?
“There are two types of coverage that are present whether you are travelling within India or outside. The first type of coverage is basically your medical expenses which cover your medical-related during an emergency or any accidental happening that you might face while traveling to any destination, domestically or internationally. It can be an evacuation because of a hazardous situation or natural calamity. These are the first set of coverages that are covered under travel insurance,” said Kapoor while explaining the types of travel insurance.
The second is very pertinent and important for the users as there are financial risks that are associated when you are traveling. There can be a loss of personal belongings or baggage can get delayed or lost while traveling. Your passport loss can be there. So, these are certain types of unknown or less common benefits that people should know and should inquire about while traveling internationally, specifically because the price that they have to offer once they undergo that particular constraint is very important for them to be safe, he added.
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How to select the right kind of travel insurance policy?
“It depends on the destination that you are going. It also depends on the duration of the trip that you are inquiring about. For example, if you are going for a leisure activity. Let’s say in a couple of countries in Europe, simple travel insurance that covers basic benefits will be sufficient but let’s say if a senior citizen is traveling to his/her family, s/he should look for cancellation benefits. These are certain benefits that particular segment of users are looking for,” he explained.
“Then comes a new segment that is gaining prominence after the pandemic is the student segment because now students have started to travel. There are specific benefits that are aligned with their requirements like their loss of a laptop, and sponsor benefits, then there is a benefit that is aligned to legal expenses like if they get in a brawl or a fight at a place. So, these are certain unique benefits that people who are opting for student travel insurance can get,” he added.
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What is the cost for all kinds of travel insurance plans?
Manas Kapoor: “It is primarily geography dependent because let’s say US and Canada which is as a geography a place where the medical expenses are a little higher as compared to countries like Singapore or Indonesia. So, the pricing of the product will be 2X or two and a half x in the USA versus a person who is traveling to Singapore.”
What are the kinds of claim structure people need to know about travel insurance?
Policybazaar.com’s Manas Kapoor said: “Travel insurance is not just a document for a visa or caring purposes. It’s a benefit that the customer should have once they face any emergency when they are outside India or within India. So, the basic structure around claims is that they just need to inform their intermediary. They just need to inform that particular intermediary that they have such a claim. They need to understand what documents are required or particular things that are required for a particular thing. For example in case of medical expenses or if the insurer is either admitted to a hospital or just visiting a general physician, it is very important to take the bills that are present with them and have a soft copy and a hard copy with them so that they can deposit that to the insurer.”
