Features of a Perfect Travel Insurance Plan

Features of a Perfect Travel Insurance Plan

An individual may travel from one country to another for businesses and other purposes due to liberalisation in the economy of various nations. Travelling is an essential aspect of the liberalised economy. The requirement of travel to different nations has become important for businesses and researchers. It is also crucial to find employment or accomplish study. However, an unfamiliar event may take place during the travel. Therefore, the traveller must purchase travel insurance in order to mitigate the potential risks.

Features of Travel Insurance

Travel insurance works as a safety measure for travellers. It provides them peace of mind from unexpectable circumstances. In addition, it also offers ample coverage to avoid unforeseeable incidents. As a result, a policy buyer must understand the key features of travel insurance.

Medical Cover

Medical coverage is the most important part of travel insurance. Owing to the high cost of medical treatment and repatriation, it is essential to buy travel insurance while travelling abroad. The ideal medical coverage in a travel insurance policy covers the following. 

  • It covers the cost of emergency medical treatment. This includes ambulance fees and hospital charges.
  • The medical cover in the travel insurance policy helps the policyholder to return home post medical treatment in the absence of a ticket.
  • It also offers accommodation expenses and additional transport for the relative who may stay with the policyholder or patient.
  • The medical cover also offers 24×7 assistance to provide support and guidance about the appropriate treatment abroad

However, the medical coverage in a travel insurance policy may not provide coverage for the following.

  • The travel insurance shall not offer any medical coverage if the policyholder fails to provide accurate details of medical history at the time of buying a travel insurance policy. 
  • The travel insurance shall reject the medical claim of the policyholder if the medical bills include unethical costs. This involves illegal activities of the policyholder which cause him injury. It also includes the excessive consumption of alcohol or misuse of wine. For example, if the policyholder mixes alcohol with medication use, the travel insurance company has full authority to reject or deny the claim. 
Case Study

Let us discuss a case study in order to better comprehend the medical coverage in travel insurance policies. 

  • Abhishek is a 12-year-old boy who has gone on a school trip to Canada. However, before going on the trip, he developed a mild cold. In order to obtain the treatment, he visited his doctor who advised him of some medication and permitted him to embark on the trip owing to a mild symptom of a cold. 
  • Nevertheless, after a few days, Abhishek fell ill with typhoid during his trip to Canada. He had to be hospitalized for a few days in Canada. 
  • The travel insurance company covered the medical expenses of Abhishek. It further arranged a flight for his parents to visit him. In addition, it also provided accommodation to his parents in Canada. 
  • At the same time, Arya, who also had travel insurance, failed to obtain medical coverage from the insurance company. He fell ill during the trip and informed the travel insurance company about the same. The insurance company rejected his application and denied offering coverage. The insurance company stated that Arya failed to comply with the terms and conditions of the insurance clauses and did not inform the insurance company about his medical history. 
Trip Cancellation

Travel insurance is also ideal for the cancellation of a trip. There might be circumstances where a policyholder may need to cancel the journey and the ticket of their flight. However, the individual may not be refunded the entire amount he spent to buy the ticket and book the place abroad. There may be a limited circumstance where the insurance company shall bear the cost of a trip.

One may find many reasons to cancel the trip. For example, if the policyholder falls ill or if a family member or close relative dies unexpectedly either on the day of the trip or before some time, he may need to cancel the trip. Nevertheless, the policy may only cover the cancellation of a trip under a limited circumstance. Therefore, it is important to check the policy and understand the circumstances when the policyholder may cancel the ticket.

In addition, the policyholder must talk to the travel agent before the cancellation of a ticket. He must verify the alternative options if available to reschedule the flight.

However, the travel insurance policy may not offer cancellation service for the following.

  • If the policyholder knows the reason before booking a ticket, he may have to cancel the ticket for the impending or forthcoming event. For example, a close relative or family of a relative is suffering from a health disease and may die in some time or few days. The policyholder is acquainted with the health condition of the ill person. Under such circumstances, if the policyholder books the ticket and later cancels it, he shall have no coverage under such circumstances.
  • If a policyholder wishes to cancel the ticket because he is unsure about the safety of the region. However, there is no official advice from the government of the state. The policyholder shall reject the claim for such reasons. The issue of the policyholder regarding the cancellation of the ticket must satisfy the insurance company.
Case Study

Let us discuss a case study in order to better comprehend the cancellation of tickets in travel insurance.

  • Mr A and Mr B planned a month-long holiday in Maldives. They planned to visit various spots in the Maldives. After paying the trip charges, they purchased the travel insurance in order to obtain coverage against an eventuality. Mr A started experiencing abdominal pain a day before flying out for the holiday. He felt severe pain. As a result, he had to visit the doctor. The medical practitioner suspected an ulcer and advised him to cancel the plan owing to severe repercussions to his health.
  • They cancelled the plan and informed the travel insurance company about the same. The insurance company acceded to their request and consulted with Mr A’s doctor in order to confirm the veracity of the claim. The doctor informed the insurance company about Mr A’s condition. As a result, the insurance company reimbursed the cancellation amount to Mr A.
Travel Delays

Travel insurance is an ideal choice in case a policyholder misses the transport or face a delay in the journey. The coverage shall include the cost of replacement of transport. In addition, it shall also provide compensation for the period a policyholder waits due to delay in departure.

A policyholder must check with the agent, or airline before claiming the insurance. In case a policyholder is travelling to the European Union and the flights are cancelled or delayed, the policyholder is entitled to compensation from airlines that come under the EU regulation.

However, the travel insurance may not offer coverage in the following cases.

  • When the delay in departure is relatively short, the travel insurance is not bound to provide any coverage. There is a specific length of time when the insurance company offers the coverage. However, a period shorter than the specified length does not amount to any claim.
  • The insurance company shall only offer coverage in case a delay occurs due to the negligence of the airlines. However, if the policyholder gets stuck in traffic and does not reach at the time, the insurance company shall not be liable to cover the policyholder. The situations which are within the control of the policyholder will not amount to any coverage or claim.
Stolen Baggage and Personal Belongings

In case a policyholder loses his baggage and personal belongings, the travel insurance shall rescue him and cover the cost incurred by the policyholder. It shall also cover the cost incurred by the policyholder for the replacement of the passport. It is a wise decision to check whether the gadget insurance offers such a claim in case of loss of belongings.

Travel insurance is famous for offering different types of coverage in a single plan. However, the policyholder must check the maximum amount he may claim for one item. In short, he must check the policy carefully.

In case of any claim, the policyholder is required to provide the receipts of the stolen articles. The insurance company may also seek a police report for the stolen items from the policyholder.

However, the policyholder is not entitled to file a claim in the following circumstances.

  • The insurance company shall not offer any coverage if the policyholder leaves his article unattended and does not take the necessary steps to ensure the safety of his belongings. The policyholder should take care of the sum he carries. In case of failure from the end of the policyholder, the insurance company shall not be liable to offer any coverage.
  • The policyholder is advised to carry the phones, laptops and other gadgets in the hand luggage. In case of failure, the policyholder shall not provide any coverage. However, if it is prohibited by the airlines, then the policyholder may obtain the claim.
Legal Expenses and Personal Liabilities

Travel insurance is also an ideal plan that offers coverage in case a policyholder causes injury to a third party. The loss or damages caused to the third party shall be compensated by the travel insurance policy. It can also help the policyholder to claim the damage from a third party if the latter has caused any damage to the former. Travel insurance is important in countries where an individual cannot expect a legal aid system.

However, the travel insurance shall not offer any coverage in case of the following circumstances.

  • If the policyholder admitted his mistakes and made an offer to the third party to compensate before consulting with the insurance company, the insurer shall not be liable to provide any coverage.
  • If the policyholder does any wrongful act under the influence of alcohol which is prohibited, then he cannot expect any claim from the insurance company.


Travel insurance is an important policy for the individual planning for a trip. It offers medical coverage to the policyholder and provides the transport and accommodation expenses to the family of the patient. In case of cancellation or delay of a trip, the policyholder may expect compensation from the insurance company. It also indemnifies the policyholder in case of loss of baggage and personal belongings. The insurance policy bears the amount incurred by the policyholder for the replacement of a passport in case of losses of baggage. Any legal expenses and third-party liability can also be covered under the travel insurance policy.

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Q. Why does an individual need a travel insurance plan?

A. A travel insurance plan is important to avoid unexpected expenses due to unforeseeable events during a journey. The travel insurance offers coverage in case of loss or damage. It indemnifies the policyholder from the potential risk he may face during an expedition.

Q. Which country makes it mandated to buy travel insurance policies?

A. The following countries make it mandatory to buy a travel insurance policy.

  • Algeria
  • Jordan
  • Israel
  • Iran
  • Romania
  • Qatar
  • Nepal
  • Morocco
  • Argentina
  • Croatia
  • Cuba
Q. What coverage does travel insurance offer?

A. Travel insurance offers the following coverages.

  • Trip cancellation
  • Baggage loss
  • Legal expenses
  • Third-party liability
  • Medical expenses
  • Trip delays
Q. How can an individual purchase a travel insurance policy?

A. The travel insurance policy can be purchased by visiting the insurance company or the website of the insurance company.

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