Travel Insurance

Travel Insurance

Once in a while, news of stranded travelers planning to dispatch to different destinations get announced in the news. Travelers can get stranded because of delays, system hiccups, or cancellations. This is why travel insurance is essential. By its terms, the insurance protects the client from unforesable occurrences during a trip, especially when away from their home country. The sole purpose of a travel insurance scheme is to cover trip and medical emergencies, as well as luggage mishaps, when out of country. 

Travel insurance contains two primary parts:

  1. Travel medication insurance.
  2. Trip cancellation insurance.

Travel Medication Insurance

A medical scheme mainly focuses on health. In the event a person suffers an illness or becomes a victim of an accident, the travel medical scheme caters for the costs. The medical scheme plays a significant part because it does not limit medical coverage. It is more suitable for people traveling far from home for a long duration of time. The medical cover also requires a person to pay about $50,000 annually to have such an extensive travel medical plan.

Trip Cancellation Insurance

In basic terms, the trip cancellation insurance policy offers insurance coverage to travelers experiencing difficulty during the trip. Under the trip cancellation insurance, trip delay, trip interruption, and overall trip cancellation are the critical components to consider.

Travel Insurance Components for Trip Cancellation

Trip Delay Cover

Trip delay insurance covers the time consumed during delays in the travel schedule. The cover mainly caters for the accommodation, meals, and any lost prepaid expenditures of the clients. For example, if a plane or train breaks down due to mechanical issues, the delay cover should provide for all client expenses until an alternate means of transport is available. However, there are limits in place to avoid over usage of money. It is important to note that these policies are subject to vary from airline to airline.

Trip Interruption Cover

Trip interruption arises when a tourist has to cut short his or her travel for a later time. The plan then covers the prepaid costs incurred and refunds them depending on the client’s choice. All interruptions require a valid reason; some of the fundamental client rights include death, illness of a family member, or a natural disaster in the home country. Generally, trip interruption travel insurance caters for situations that were not intended to happen during a trip.

Trip Cancellation Covers

Trip cancellation covers provide insurance in situations where a client has to cancel a trip for a particular cause insured under the cover. It is more or less the same as a trip interruption cover. The trip cancellation cover has the power to refund money used for buying tickets, booking hotels and tours, as well as hotel reservations. Trip cancellation can be caused by the traveler or changes in the scheduled plans. In the event of a trip cancellation, it is advisable to alert travel agents and insurers as soon as possible. If the trip was interrupted in the course of the journey, it is best to keep up with the flight plans.

In conclusion, it is not compulsory to get travel insurance. However, if you work in an organization that requires you to travel regularly or enjoy vacations, it is worth considering. It is a special type of insurance that takes care of unexpected accidents during travel and ensures that the journey is sufficiently covered.

Featured Image: depositphotos/ AndreyPopov