Understanding a travel insurance policy can be slightly difficult if you are not aware of the meaning of terms written in the policy document. This can pose a problem while buying the policy or making a claim. You could also lose out on covers that are useful but you simply ignored them as you did not understand the meaning of certain terms.
To help you understand your travel insurance policy better, here are terms and their meanings:
- Premium: The amount spent on buying a travel insurance policy is called the premium.
- Insurer: The insurance company that offers travel insurance to the traveler is called an insurer. The policyholder pays the premium amount to the insurer.
- Insured: The person who purchases travel insurance from an insurance company is called an insured. He/she is covered against perils related to traveling, under travel insurance.
- Trip: A trip consists of your travel itinerary. It begins when you start traveling from one destination, includes air, land or water transport, and ends when you return to the destination you started the trip from.
- Effective Date: The date on which your travel insurance policy begins that is the date from which you can start availing the travel insurance coverage. Buying travel insurance online will help you get the earliest effective date easily.
- Single Trip Plan: A travel insurance policy that covers the insured for one trip is called a single trip plan.
- Multi-Trip Plan:A travel insurance plan that covers the policyholder for more than one trip is called a multi-trip plan.
- Common Carrier: Transportation service offered by a licensed company to help passengers reach from one destination to another via and, sea, or air is called a common carrier.
- Pre-Existing Conditions: Health/medical conditions suffered by an insured before buying travel insurance are called pre-existing conditions. You can easily specify your medical condition when you buy travel insurance online.
- Sum Insured: The maximum amount of money for which you can raise a claim under your travel insurance policy is called the Sum Insured.
- Deductible: Part of the claim amount to be paid by the policyholder is called a deductible. There can be different types of deductibles in a travel insurance plan.
- Certificate of Insurance (COI): COI consists of the details of your travel insurance policy, it lists the inclusions and exclusions of the plan. It also includes the cash limitations of your travel insurance policy.
- Co-payment: Copayment is a certain percentage of the claim that is paid by the policyholder before the intervention of the travel insurance company.
- Exclusions: These are situations that are not covered under your travel insurance policy. As a policyholder, you cannot raise a claim against these situations.
- Coverage: Situations that are covered under your travel insurance plan are called as coverages. If any of these situations arise, you are allowed to raise a claim under your travel insurance policy.
- Network Hospital: If your travel insurance company has a tie-up with a hospital where you can avail cashless treatment, the hospital will be considered as a network hospital. An insurer with a wide range of network hospitals is always preferred.
Things to remember before buying travel insurance coverage
- Method of buying the policy: Thanks to the convenience provided by the internet, you can make purchases online. This includes buying travel insurance online as well. This method is more efficient than buying the policy offline. When you buy travel insurance online, you can avail various discounts and receive your policy quickly.
- Compare travel insurance policies: Before you buy travel insurance online, always remember to compare travel insurance policies. This will help you get the most affordable plan as well as the features that you need.
The Bottom Line
Understanding various terms related to travel insurance will help you while buying the policy or making a claim. Also, avoid buying a travel insurance policy at the last minute. This will help you buy a better coverage that suits your requirements.
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