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Should You Get Travel Insurance in 2021?

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Published on March 17, 2021 | Est Read Time: 2 min

If you’re reading this you’re probably thinking of buying travel insurance or at the very least are curious about what travel insurance is. After all travel insurance is a relatively new form of insurance in India. Globally too, travel insurance has picked up only in the last decade or so, with the US Travel Industry Association estimating that between 2001 to 2019, the percentage of leisure travelers opting for travel insurance has gone up from 10% to 30%.

With the outbreak of Covid-19, the demand for travel insurance has gone up as several countries have made it mandatory for arrivals to have travel insurance. With the unforeseen disruptions to the travel ecosystem due to Covid-19, the demand for certain types of travel insurance have gone up by almost 500 %.

The Impact of Covid-19 on Travel

Covid-19 has had a crippling impact on the travel industry. With lockdowns and near-complete prohibitions on the movement of people, 2020 was one of the worst years for travelers and the travel industry. As countries slowly reopen their borders, many nations have made it mandatory for travelers to have travel insurance with Covid-19 coverage. Travelers are at risk not only of being hospitalised on account of Covid-19 but also have to contend with the possibility of flight cancellations on account of suddenly imposed lockdowns or changed travel policies in response to Covid-19. In short, travel has become highly unpredictable and risky on account of Covid-19.   One should consider buying travel insurance to better equip oneself to deal with these challenges posed by Covid-19.

What then is travel insurance, what benefits does it provide to the traveller, and do you really need one? Read on to find out.

What is Travel Insurance?

Travel insurance is a form of insurance that protects you from possible damages, expenses, delays, and losses you may incur during business or leisure travel in return for a premium.  For instance loss of baggage, documents, delays, flight cancellations, or medical bills incurred during treatment were one to fall ill while travelling, etc. may be covered by travel insurance in accordance with the plan purchased and the insurer opted for.   A particular plan may cover one, some, or all of these eventualities. Like with other types of insurance, there is no one-size-fits-all kind of travel insurance. The benefits one gets vary with the plan one purchases therefore it is important to find the plan that best suits one’s needs.

Why is Travel Insurance Important?

To begin with, travel insurance is a mandatory requirement for entry into over 34 countries, including some of the most popular destinations such as the United States, UAE, and Schengen Countries in Europe. So, whether one likes it or not, one simply needs travel insurance to enter these countries, and for good reason too.  For a traveller from a third-world country like India, the cost of meeting any untoward eventuality in any of these countries could be very high and travel insurance can help cover unplanned expenses. On top of this, since the outbreak of the Covid-19 pandemic, several other countries have imposed the requirement of having travel insurance with Covid-19 coverage for all arrivals, thereby making travel insurance even more important.

What Does Travel Insurance Cover?

A good travel insurance policy needs to protect you from the following eventualities:

Medical Expenses- These include expenses incurred in case of falling ill while travelling or meeting an accident. In 2021, it is important that Covid-19 related medical expenses also be covered under your travel insurance, as travellers are at a high risk of contracting Covid-19. Different insurance providers provide a wide range of additional features.

Loss of Passport- In case you lose your passport while travelling, your travel insurance will help you with locating the nearest law implementation center where you can report your lost/stolen passport and arrange for supplementary travel documents. Travel insurance for instance, also covers the costs of a replacement passport.

Loss of Check-in Baggage- A good travel insurance should cover you in case your check-in baggage at the airport is lost. Some insurers even cover eventualities such as a delay in checked-in baggage.

Flight Cancellation- In 2021, flight cancellations are a very real possibility as government policies keep changing at short notice in response to the threat posed by Covid-19. So it’s important that your travel insurance provide some measure of protection from losses caused due to sudden flight cancellations.

In addition to the above several insurance policies provide add-on features that cover a variety of unforeseen circumstances. For instance, we offer financial emergency assistance that covers your essential expenses in case you find yourself stranded without your credit card/debit card or wallet. Many travel insurance also cover you in case of you find yourself accidentally liable for any third-party damage in a foreign country. Another feature offers that travel insurance offer is Hijack Distress Allowance wherein you are compensated for the distress suffered by you in the unfortunate event of a hijack.

At the same time, it is important to read the fine print while purchasing travel insurance. For instance, most insurers may not cover medical emergencies or treatment on account of pre-existing medical conditions or ailments. Or any accidents or losses suffered while under the influence of intoxicants may not be covered by your insurer. It is very important to dig into the details and find out exactly what your travel insurance covers and what it does not.

Is Travel Insurance Worth It in 2021?

The short answer, yes. The long answer, it has never been more important to have travel insurance than in 2021. With a pandemic raging across the globe, travel insurance is important to be able to travel safely and responsibly. Not only does one get the option of having one’s medical expenses covered, but one also gets a number of other features such as coverage in case of loss/theft of baggage and valuables.

Conclusion

Travel insurance is an important tool that enables you to better negotiate risk in the radically altered global travel scenario in the post-Covid era. With a wide variety of plans being offered by a number of travel insurance providers, one should choose a plan that is best suited to one’s needs.

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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