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Buying travel insurance? Here are some common mistakes to avoid

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Published on March 25, 2021. EST READ TIME: 3 minutes

The importance of travel insurance has become cemented in the minds of travellers, especially post the pandemic. From leisure to business, people travelling aim to purchase the right travel insurance that secures their national or international trips. But given the number of policies available in the market, this can be a daunting task. However, if you are searching for the right policy, you can avoid some mistakes. Here, let’s discuss the common mistakes to avoid while buying your travel insurance policy.           

Mistakes you should avoid to secure your trip

1. Hiding medical information : While buying travel insurance, it is important to disclose any pre-existing medical conditions. This is because if you get hospitalised due to any undisclosed illness or disease, you will not be covered and have to bear all the medical expenses.  Any claim arising out of those illnesses will be rejected.

2. Not buying the right policy : Many people choose a policy that is affordable without taking into consideration the benefits, coverage and most importantly the destination. If you are travelling to the US or UK, where medical expenses are high, you should go for a policy with a bigger sum insured. Similarly, if your place of visit is prone to natural disasters such as cyclones, earthquakes, or floods, check for a policy that covers all these. Other factors include the number of travellers, the duration of your trip, how many connecting flights, etc. Do proper research of the place you are heading before purchasing travel insurance.

3. Buying insurance at the last minute : One mistake that most travellers do is buying travel insurance at the last minute. It is recommended to buy insurance well in advance so that you don’t miss out on benefits such as claims for trip cancellation and natural disasters. Also, buying in the eleventh hour means not enough time to do thorough research and you may not get a good deal. I nsurance providers also do not usually allow you to buy a travel insurance policy after you have embarked on your journey.

4. Not reading the terms and conditions: During your vacation, imagine you get injured while trying adventure sports. You get a rude shock when your claim for hospitalisation expenses gets rejected because it is not covered in the policy. So, before taking the travel insurance, read the terms and conditions carefully, know the exclusions and get them clarified from the insurance provider in case of any doubt. If required, you can upgrade your policy to avoid any unnecessary confusion during the claim settlement.

5. Not informing the insurer on time: As per the policy terms and conditions, the insurer should be notified about the loss within a particular time period (check with your insurer since it varies from one insurer to another). If you miss the deadline, there is a likelihood that the claim can get rejected. Inform the insurer as soon as possible about the loss to initiate the claim process.

6. Don’t go by low premium: Choosing a policy because the premium amount is low is a common mistake. While looking for affordable policies, we, sometimes, get attracted by the low premium ignoring the benefits of the policy. You may pay a low premium, but if it gives only limited coverage, you may end up with out-of-pocket expenses. So, the cost of the premium should not be the only criteria while researching for a policy, rather go for the one, which will suit your needs and serve the purpose.

7. Not reading the claims process: After buying travel insurance, we only check the coverage, but what is equally important is the procedure to file a claim. You should be aware of the documents and bills that need to be submitted, the contact numbers, time limit of filing a claim so that it does not create panic at the time of claim settlement. Filing a claim after the time limit can lead to claim rejection. One more thing that one should not overlook is the past claims record of the insurance provider.

Conclusion

Travel insurance comes with a host of benefits and takes care of the unexpected financial losses during a trip. However, while taking the policy, most of us don’t really read between the lines of the policy and make certain common mistakes as listed above. It is recommended to go through the terms and conditions word by word and avoid mistakes for a hassle-free trip. Bon Voyage!

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