A Basic Guide to travel insurance terms
Travel insurance can be a frightening prospect not just because we are planning for the worst case scenarios and are paying money to someone else to take care of them but also because of the strange and complex terms that surround buying travel insurance. All one has to do is to familiarize themselves with the various buzzwords and terms and you’ll observe that buying travel insurance is not so hard after all. Let us take a look at some of the big questions on everyone’s minds when it comes to travel insurance.
What is a travel insurance policy?
A travel insurance policy protects you from unexpected costs that arise during your travel plans such as flight cancellation, delay, loss of documents, baggage loss/delay, sickness and accidents. These incidents could prove to be very costly and end up doing a lot of monetary damage. Travel insurance policies reimburse these costs incurred provided they are within the insured sum amount.
What is travel insurance premium?
The premium is an amount that is paid periodically to an insurance company to ensure that your insurance policy is renewed and remains valid. The premium amount is calculated based on the coverage of your plan, number of members in the policy and the type of policy.
What is travel accident insurance?
Travel accident insurance ensures complete medical coverage when you are on your trip. Costs arising due to the treatment of injuries, bodily damage and dismemberment during accidents while on travel are reimbursed by travel accident insurance.
What is single-trip travel insurance?
The premium for these plans is one-time and they are valid for only one trip. This is best suited for occasional travelers and usually does not provide more than 6 months of coverage.
What is multi-trip travel insurance?
The multi-trip travel insurance plans are the best choices for frequent fliers. These plans come with an annual validity and require premium to be paid each year. During this duration, travelers are covered for any number of trips they undertake during this validity period.
Travel insurance deductible
A deductible is the sum of money that you agree to pay during claim settlement, instead of the travel insurance company bearing the entire cost of settlement. This means that the premium that has to be paid on plans with deductibles is significantly lower but at the time of claim settlement, you will have to bear the agreed-upon cost.
Now that you are familiar with the major travel insurance terms, you can buy travel insurance at the click of a button. Please visit HDFC ERGO to know more about travel insurance plans and choose the one that best fits your next trip!