Travel insurance: Your foreign policy

Jun 27 2014, 12:50 IST
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SummaryBuying travel insurance promises complete peace of mind on an overseas trip. Heres the lowdown

that is covered.

Moreover, with airline companies often calling flash strikes, trip delays have become a norm, leaving the vacationer stranded abroad. A travel insurance will take care of your lodging expenses.

Insurance companies offer financial emergency assistance, which compensates the insured in case of any financial emergency because of theft, mugging, robbery, dacoity of funds. The compensation, however, does not exceed the maximum sum insured. However, insurance companies are not liable to make any payment under financial emergency assistance benefit because of a shortage or loss of funds due to currency fluctuations, errors, omissions, exchange, loss or depreciation in value. Also, any loss not reported to the police or authorities having jurisdiction at the place of loss within 24 hours of incident would not be covered. Analysts advise that before buying travel insurance, one must read the fine-print very carefully. Any kind of ambiguity discovered must be immediately reported to the insurance company. This will reduce the chances of being caught offguard in a foreign land.

The insurer compensates the insured for the loss of passport during a foreign trip, but it wont exceed the sum insured for the coverage. The insurer also reimburses the insured for actual expenses necessarily and reasonably incurred in connection with obtaining a duplicate or fresh passport. However, insurance companies are not liable to make any payment if the loss of the passport is due to delays or confiscation or detention by the customs, police or public authorities. In case of lost baggage, the insurer will pay for your clothing and other belongings.

Insurance companies offer a wide range of specialised travel insurance, such as individual plans, family floaters, senior citizen schemes and plans for students. Some also offer multiple trip plans for business travelers.

At the time of buying a travel insurance policy, look for some additional benefits that many policies cover,

such as hotel accommodation cover, missed flight connection and even return fare for a family member in case of hospitalisation abroad for over seven consecutive days.

Travel insurance covers health insurance and accident policies, but one has to bear in mind that the policy does not cover any pre-existing conditions. In fact, the insured needs to declare such conditions before he travels.

Most travel insurance policies also exclude acts of terrorism, war or war-like action, suicide and self-inflicted injury. Policies also exclude hospitalisation or accident caused under the influence of drugs or intoxicants, exposure to excess radiation,

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