8 Key Travel Insurance Policy Terms Every Traveler Should Know

Travel insurance can be a lifesaver when you’re far from home, but only if you understand what your policy covers. Surprisingly, nearly 18% of global insurance claims are rejected because policyholders misunderstand or overlook the terms and conditions of their plans. This highlights how critical it is to understand your travel insurance policy inside and out.

Contents

• Bottom Line
• Frequently Asked Questions

In this blog, we will talk about eight essential travel insurance policy terms that every traveller should know. Whether you’re planning a vacation abroad or a business trip, understanding these terms will help you make informed choices, avoid costly mistakes, and travel with peace of mind.

Given below are the 8 key travel insurance policy terms that you should be familiar with:

1. Coverage Period

The coverage period includes the beginning and end dates of the insurance policy, which are mainly the travel dates. Your coverage period can not start and end on the same date. 

You can also get a travel insurance plan for a five-day trip starting at ₹49. The coverage period and pricing depend on the insurer you select and your travel insurance conditions.

2. Inclusions

Inclusions refer to the things that are covered under travel insurance. It includes:

• Accidental Emergency

• Illness Expenses

• Hospitalisation Allowance

• Physiotherapy Expenses

• OPD Expenses

• Compassionate Visits

• Evacuation (for emergencies and medical reasons)

• Accidental Death

• Permanent Disability

• Repatriation of Mortal Remains

• Emergency Stay and Extension

• Delayed Baggage

• Lost Baggage

• Partial Loss

• Flight Delay

• Flight Cancellation

• Missed Flight

• Flight Rescheduling

• Missed Connection

• Loss of Passport

3. Exclusions

Exclusions are the situations that are not covered under a travel insurance plan. These include:

• Invalid visa travel.

• Travelling only for medical consultation or treatment.

• Travelling with a terminal medical prognosis.

• Overstaying and violating the visa.

• Travelling against doctors’ advice.

• Tip not ending in India.

• Pre-existing disease or related complications.

• Pregnancy-related concerns.

• Any self-inflicted injuries/ attempted suicide/suicide.

• Accidents due to intoxication/ drug use.

• Participating in illegal activities or breaking the law.

4. Premium

Premium is the amount you pay while buying an insurance plan. Premiums for different plans vary according to the selected duration of the journey and the destination.

For instance, the travel insurance for a month’s trip to Japan can start from ₹1,300. Nonetheless, a month’s trip to the USA may cost you around ₹2,700.

5. Claim Process

Making a claim refers to the process where you ask for reimbursement from your insurer on the basis of necessary proof. There are generally two ways in which you can make a claim: a cashless claim and a reimbursement claim.

Your insurer can provide you with cashless claims for medical emergencies covered in your policy at the network hospitals. In case of reimbursements, it generally takes around 2-3 days for an insurer to process a claim.

6.Add-ons

Add-ons are one of the key aspects of travel insurance policy terms. They refer to the additional coverage options that you can add to your existing travel insurance plan. These add-ons can be adventure sports injuries, bounced booking, and more.

The selection of add-ons is based on travel requirements. For instance, if you are going on an adventure trip, then getting an adventure sports injuries add-on can save you a lot in unforeseen circumstances.

7. Pre-existing condition and Lookback Period

A pre-existing condition refers to the medical condition of a traveller that currently impacts the health of the policyholder and not something caused suddenly when abroad. It means that if you suffer a life-threatening complication related to a pre-existing illness while abroad, certain policies will cover emergency hospitalisation due to a sudden and severe episode of the condition.

The lookback period refers to the time range within which the insurer checks your medical history to determine whether you have any pre-existing medical conditions.

8. Free Look Cancellation

This is the time period after the start of your trip/ insurance policy when you can cancel your insurance and seek a refund.

The Free Look period is generally the period of 30 days from the date of receiving your insurance policy.

Bottom Line

Overall, understanding your travel insurance policy terms is not just helpful but is essential. Every clause matters in understanding what could lead to a possible rejected claim.

So, by familiarising yourself with the coverage period, exclusions, and more, you can travel with confidence and avoid costly surprises. Always remember to read the fine print of your travel insurance policy document.

Protect your trip with ACKO’s affordable travel insurance starting at an affordable rate. Get comprehensive coverage, instant policy issuance, and 24x7 claims support, 100% online!

Frequently Asked Questions

Q1. What does travel insurance not cover?

Travel insurance does not cover a few exclusions. These exclusions led to denied reimbursement for any kind of activity you do that was not stated in your travel insurance policy document.

It could be travelling with an invalid visa, not disclosing any pre-existing medical conditions, self-harming activities, and more.

Q2. What are the different types of travel insurance?

Several types of travel insurance provide coverage for different kinds of travel needs and demographics. These types include: domestic, international, group, single trip, multi-trip, senior citizen, and student travel insurance.

Q3. How to get travel insurance?

You can easily get travel insurance online. You will just need to select your insurer and go to their website or application. There, you will have to provide some personal details along with your trip details. Then you can compare multiple plans and buy the one that suits you the most.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet, and is subject to changes. Please check the policy document for cancelation reasons, and terms and conditions of the policy.

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