What Can Travel Insurance Do for You?

Travel DL draftA.indd In general terms, travel insurance protects a traveller's costs against adverse events such as cancellation and interruption and also reimburses medical expenses, the loss or damage of property and transit delays. The main categories of travel insurance :

1. Delays and cancellation - including curtailment

This reimburses travellers for hotel, food or clothing expenses in the event of a flight delay. Some plans also cover costs associated with catching up with a cruise should another delay cause the traveller to miss embarkation.

Reimbursement comes into effect if travellers have booked and paid for a holiday, but are unable to embark because of personal illness or injury, death, adverse  weather conditions, airline strikes, terrorism, bankruptcy, sudden unemployment, jury duty or by sustaining serious damage to their home causing it to be uninhabitable due to fire or flooding.

Insurance companies pay money to policy holders abroad if they have to cut short their trip due to illness, death, weather, Airline strikes, terrorism, bankruptcy, becoming unemployed, and other adverse conditions which mean that, due to events outside the control of the holiday-maker, a trip has to be curtailed.

2. Medical reasons

Medical and health reasons
Reimburses medical and emergency dental costs. Almost all travel insurance plans work by reimbursing the traveller after they have paid locally  for treatment. Claims are usually paid within 7 - 10 days. Pre-existing conditions are covered by most policies if the policy is purchased within 21 days from the date the traveller made the first payment or deposit.

Medical evacuation
This provides emergency transportation to either a local hospital in the event that the traveller is unable to get there by themselves or back to a hospital near the traveller's place of residence. If family members are covered on the same policy they can return home also.

3. Death of traveller

Air Flight accident
This covers death or dismemberment during an air flight only. Usually provides the highest amount of coverage due to fairly low likelihood of this occurring.

Common carrier
Covers death or dismemberment while travelling on public transport such as a plane, ferry, train bus or taxi.

Accidental death
Covers death or dismemberment at any time of your trip. Usually provides the lowest amount of coverage due to a higher risk

4. Loss or damage of personal effects

Baggage loss
Reimburses travellers for lost, stolen or damaged personal items. This coverage is usually restricted to the duration of the trip and not confined to baggage damaged or lost by the airline. There are two policy limits, total claim and per item maximum. Some policies also place limits on the type of items that can be claimed for - such as precious jewellery, laptops and sporting goods

Rental Car damage
Reimburses travellers for damage or loss to a rental vehicle. It is designed to allow the traveller to decline collision damage waiver (CDW) coverage offered by the car rental companies. Liability coverage should still be purchased through the car rental company. Rental Car Damage coverage is also often included with the credit card used to pay for the car rental which is often matches the coverage provided in the policy.

Assistance services
Provides a 24-hour collect telephonel advice and assistance service to travellers. This service can be used anytime a traveller needs advice. Make sure you don't leave home without it.

5. In conclusion
travel insurance is the one product in the modern insurance-saturated world that really is essential. You will not regret taking it out, but not being insured for your travel mishaps is a source of huge regret for far too many holiday-makers every year.