Travel or Holiday Insurance: What it is all about.

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Soon, we will be fully covering international scholarship applications, with this in mind, you might frequently come across travel insurance, health insurance, student insurance etc these are part of the requirements for studying abroad in some institutions. That is the reason why I want to start the weekend by introducing us to travel insurance and what it is all about and why it is necessary for a student traveling or embarking on a study / conference / internship abroad.

So many things are included in travel insurance and your knowledge of what is included gives you the utmost edge to benefitting from it.

Travel / Holiday Insurance:

In general terms, holiday insurance protects a traveller’s holiday costs against adverse events such as cancellation and interruption and also reimburses medical expenses, the loss or damage of property and transit delays. Travellers are compensated if they have to cancel or interrupt their travel, they will also be covered should they need emergency medical treatment, medical evacuation and other situations.

Coverage / Categories of holiday insurance

Interruption

  • The event of a Delay: 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.
  • Cancellation of a journey: 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 (of the individual or of a family member), 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.
  • Interruption: Insurance companies pay money to policy holders abroad if they have to cut short their trip due to illness, death (of the traveller or a family member), 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.
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Medical Coverage

  • Medical and health reasons: Reimburses medical and emergency dental costs. Almost all holiday 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 (at the most) 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.

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
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Damages or loss

  • 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 telephone 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.

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