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Advantages and Disadvantages of Travel Insurance

Advantages and Disadvantages of Travel Insurance

Most individuals hesitate to invest in travel insurance because they are unaware of its benefits. Without weighing the pros and cons of travel insurance, you should not come to a decision, as you could miss out on the benefits that this policy offers that are much-needed for your journey.

This article discusses travel insurance’s advantages and disadvantages so you can decide accordingly.

Travel Insurance Advantages

Emergency Medical Expense Coverage

Falling ill or meeting with an accident during travel can result in medical treatment, which can be costly, irrespective of where you are.

With a travel policy to back you up, expenses related to medical treatment, including out-patient treatment, in-patient treatment, hospitalisation, diagnostic tests, admission to a special clinic, etc., are provided for by your insurer.

Compensation for Loss or Delay of Luggage

Losing checked-in luggage can be devastating, especially if you keep your valuables in it. Your travel policy will provide you compensation for your entire loss, subject to policy terms and conditions.

Again, if your luggage is misdirected or delayed for more than 12 hours from the actual date of arrival, then you will be provided with financial assistance for purchasing essential personal items.

Reimbursement for Trip Cancellation or Interruption

Your trip can be cancelled because you suddenly fell ill or because an immediate family member passed away right before your journey.

Bad weather conditions can also cause your trip to be cancelled or interrupted. In such a case, this policy will reimburse you for your forfeited non-refundable payment, provided the prepaid payment was made before the actual departure date.

Financial Protection in Case of Missed or Delayed Flight

In this discussion of the advantages and disadvantages of travel insurance, one advantage is that if your flight is delayed or if you miss your flight because of bad weather, you will receive reimbursement for any extra expenses you incur due to such unexpected situations.

Reimbursement to Third Party for Personal Liability

In case you damage the property of a third party or cause them physical injury, your insurer will take care of the compensation for the same under a travel policy.

This can save you a considerable amount of money if such an incident occurs overseas, as you will have to pay the compensation in that country's currency, which can be costly. Your travel policy will act as a shield in this case and save you from financial distress.

Financial Provision if Travel Money is Lost

Getting financial aid when your money is stolen or robbed is an advantage travel insurance offers you to relieve you from mental stress. Financial assistance will be provided so you can continue your journey while making all necessary arrangements for funds.

Coverage for Medical Evacuation

If your medical condition requires you to be transported back to India, your policy will reimburse you for the cost. It also covers expenses associated with bringing the policyholder's body back to India in case of the insured's death outside the country.

High Age-limit for Policy Purchase

Under this policy, anyone between the ages of 3 months and 90 years can become a policyholder. This means that you can receive financial protection to cover your parents' journey as they come to visit you from India.

Also Read: What Does Travel Insurance Cover

Travel Insurance Disadvantages

It is an Additional Expense

You will have spent a huge amount on travelling and adding this policy's cost to your trip's overall expense can dissuade you from opting for a travel policy. However, many insurers today offer a number of affordable travel policies that you can choose from.

Policy Exclusions can be Discouraging

One of the major disadvantages of travel insurance is exclusions in the policy. You will not likely be provided financial coverage if you require medical treatment for getting injured while engaging in sporting activities. Coverage for this scenario requires an add-on cover.

Additionally, you will find specific things that will not likely be protected:

a. Modifying terms for personalised purposes

b. Loss due to occurrence of war

c. Pre-existing health concerns

d. Harm by customs

e. Self-induced sickness or injury

With these travel insurance pros and cons discussed, you can see that the advantages of opting for a travel policy outweigh the disadvantages. If you are willing to spend a substantial amount of money on your travel, securing that cost with a travel plan is worth considering.

Conclusion

Whether or not you opt for travel Insurance for your journey is up to you, but it is clear from the above discussion that you will benefit from investing in this policy, especially when you travel abroad. Moreover, some countries even mandate travel insurance.

Making payments for medical treatments or personal liability outside of India is very costly, which can add to your perils due to untoward incidents. You have to consider all the practical aspects of travelling before you actually travel, which is why it is highly recommended that you purchase a travel policy before you start your trip.

Make Your Overseas Travel Safe with Reliance General Insurance

Protection from expenses due to any medical emergency is always required, and we provide that to you under our overseas travel insurance coverage. Apart from this, if you need dental treatment because of physical injury while travelling, this policy will also cover the cost of such a treatment.

Our compassionate visit cover allows an immediate family member to come and visit you if you are hospitalised overseas for a long time. We will take care of the coverage for their travel and accommodation.

To learn more about this policy and how it can benefit you, glance through our official website.

Frequently Asked Questions

Does travel insurance provide personal accident coverage?

Yes, coverage is provided for permanent disability and death under a travel policy.

Can a travel insurance policy be extended for medical treatment?

If your medical condition requires that you stay abroad beyond the policy duration, coverage will be provided for up to 30 days until you can be brought back to India.

Are there types of travel insurance?

Yes, travel insurance types include domestic travel policy, international travel policy, individual travel plan, family travel plan, Senior Citizen Travel Insurance, student travel insurance and corporate travel policy.