What is Personal Liability Cover in Travel Insurance?

Posted on: Mar 20, 2023 | | Written by:

What is Personal Liability Cover in Travel Insurance?

Published on March 20, 2023. EST READ TIME: 3 minutes

One of the most relaxing and adventurous things that you can do is travel. It has therapeutic results and can help you connect with your inner self. If you have already decided on your next trip, you must opt for travel health insurance. There are a lot of benefits of the same, which we will discuss a bit later. However, there can be a few technical terms and jargon which might be a bit difficult to understand.

One such term related to travel health insurance is personal liability. If you have ever purchased travel health insurance or have researched it, the chances are high that you would have come across personal liability. Here is everything that you need to know about personal liability in a travel insurance plan.

What does personal liability mean?

If, due to any unforeseen event or incident, you are personally liable for injuries or damage, it is called personal liability. Even if you did not intentionally cause the damage or injury, the onus is on you to compensate for the damages or injuries. Things can get a bit tricky during overseas travel. Where the laws, rules, and regulations can be quite different from India. If you do not have a travel insurance plan, you will end up compensating from your pockets.

Personal liability in such cases is related to your legal obligation to compensate the party that is at the receiving end. If your travel insurance has a clause for personal liability, there is no need for you to worry about the compensation.

Here is a simple example. You are shopping in a convenience store and accidentally, your trolley hits an elderly person, causing some injury. In such cases, they have all the right to sue you for bodily injury. And the lack of personal liability cover would mean that you will end up paying for the compensation from your pockets.

Personal liability in travel insurance

If you have opted for individual travel insurance, by agreeing to pay a small premium on top of the plan, you can opt for personal liability. It will ensure coverage against any injuries or damages that you might cause during your trip. When you opt for coverage, the insurance provider will ensure that the third party is compensated with the maximum amount mentioned in the policy.

Should a third party make any claims against you, it is important to inform your insurance provider first. You must not agree to any liability or compensation without speaking with your insurance provider. Once you inform them, the insurance provider will take care of the proceedings. Your only task would be to cooperate and assist your insurance provider as and when needed.

It is important to note that a claim can never be settled without the consent of the insurance provider. Thus, it is critical that you let your insurance provider know about the incident at the earliest. If the insured does not agree to the settlement and decides to contest it, the liability of the insurance provider will not exceed the original claim amount.

The working of personal liability

Any claims related to personal liability usually cover legal fees, other compensations, and medical bills. Depending on the case, the amount can be either a few thousand or a few lakhs. When you opt for individual travel insurance, you can choose personal liability as an option or an add-on. It largely depends on the insurance provider.

By paying a very small premium, you will ensure the protection of your finances. In the unfortunate event of you getting involved in an incident during your travel, the policy will protect your finances. Which otherwise can set you back considerably.

If you find yourself in a situation where there might be personal liability involved, make it a point to inform your insurance provider about it. They will guide you through the process of proceeding with the claims. And all the steps that you might need to follow for the claim.

Key points to remember about personal liability

You can select personal liability as an add-on or option in your overseas travel insurance. However, there are a few things that you need to keep in mind.

1. If you cause any damages intentionally, you are liable for compensation for the same. For example, if you attack someone intentionally or get into a fight due to anger, etc.

2. In the event of a third-party claim against you, an insurance provider will only proceed with the claim if you are innocent and the action was not intentional.

3. For trips that include children, it is recommended that you opt for family overseas travel insurance along with personal liability coverage.

4. For out-of-court settlements, your insurance provider will settle the claim directly.

5. If you are planning to travel along with your pets, any damages or injuries caused by them will not be covered as a part of personal liability.

6. As is the case with any other insurance policy, there are exclusions. Make sure that you are aware of these, or else you might end up with a rejected claim. Staying away from unlawful activities, intentional acts, mischief under the influence of alcohol or drugs, and transmission of diseases are some of the common things that you must keep in mind.

7. You can take the legal route if you are not satisfied with the settlement of your insurance provider. However, it does not guarantee that you will be compensated for the entire amount or other expenses that you incur in the meanwhile.

Is personal liability beneficial?

Good travel health insurance can protect you against a lot of scenarios. The plan can protect you against any medical expenses that arise during a trip. If you lose your baggage or documents, the plan will compensate you for the same. It will also take care of any cancellations either from the airlines or hotels.

Travel plans, along with personal liability cover, are a much smarter choice. As already discussed, it ensures that the insurance provider compensates for any liabilities. And in the long run, it will help you save money as well.

Conclusion

A lot of travellers do not consider personal liability for their travel. During a trip, there can be personal liability or legal liability. And these can lead to financial setbacks. If you are travelling abroad, the laws might be quite different than what it is in India. A small mistake in such cases can cause substantial financial damage to your budget and finances. It is recommended that you opt for personal liability coverage along with your travel health insurance. Either as an option or as an add-on. It will protect you during your stay, and the small premium will go a long way to protect your finances as well.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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