Planning an overseas trip requires a lot of efforts. At first, you have to plan your finances to take the trip and then plan the destination, the itinerary, the accommodation and then the air tickets. Lakhs of rupees are spent on planning a perfect trip overseas. If anything goes wrong you stand to lose a lot of money.
Contingencies, however, come unannounced. Even though you take a lot of care to plan your trip, you might face emergencies and accidents which cause a financial loss. Such losses have the potential to blow a hole in your travel budget and your savings as a whole. So, how can you protect against these losses? The answer is through an overseas travel insurance plan. The policy provides extensive coverage against contingencies faced when you are traveling abroad. In this article, we will discuss overseas travel insurance & how trip cancellation affects the policy.
Overseas Travel Insurance Policy
Overseas travel insurance in India is an insurance policy which covers financial losses faced when traveling abroad. The coverage under the overseas travel insurance policy includes the following:
- Medical emergencies including evacuation and repatriation
- Loss or delay of baggage
- Loss of passport
- Personal liability
- Personal accident
- Trip interruption, cancellation, and delay
- Hijack distress allowance, etc.
Besides medical coverage, coverage for trip cancellations and interruption is an important coverage benefit under international travel insurance in India. Let’s explore why –
After putting in a lot of planning and finances, your trip might get canceled due to uneventful circumstances. If you or your family member going on the trip, falls seriously ill or if there is a death in the family you might be unable to take the trip. In that case, the money spent on advance bookings is lost. However, if you buy travel insurance, the loss incurred on trip cancellation is covered. Besides trip cancellation, many travel insurance plans also cover trip interruption as well as trip delay.
How does trip cancellation affect travel insurance?
When you cancel a trip, you have to inform the insurance company of the cancellation and raise a claim. After verifying the claim, the insurance company would compensate for the financial loss suffered on advance ticket bookings and hotel reservations. For a claim to be valid, trip cancellation, curtailment or delay should be for unavoidable and serious emergencies. Examples of serious emergencies include death in your immediate family, serious medical contingencies which result in hospitalization or render the member unfit to travel, etc.
Making a claim
To make a claim for trip cancellation you have to fill up a claim form and inform the insurance company. The company would verify the reason for trip cancellation. You would have to submit the copies of your air tickets, hotel accommodation receipts and the supporting documents showing the reason why the trip was canceled. After inspecting your claim the insurance company would compensate for the air ticket expenses and also for hotel accommodations subject to the specified coverage limit.
Trip cancellation v/s trip curtailment
Trip cancellation is when you are unable to take begin the trip. In case of trip curtailment, however, you do undertake the trip but you cut short the duration of the trip due to unavoidable circumstances stated earlier. In case of trip curtailment also you incur losses because of canceling the air tickets and preponing the check-out of your hotel accommodation. For curtailment too, the insurance company arranges to pay for fresh ticket bookings and compensates you for preponing the check-out date
International travel insurance policies prove to be quite effective and financially beneficial. So, buy travel insurance when you are traveling abroad and secure your finances against possible trip cancellations and interruptions.
Read informative Travel Insurance Articles at Acko.
Read all our insurance & non insurance related articles here.