The trend of domestic and international travel has increased in the country for the last two-three years. Due to this the demand for travel insurance is increasing. Recently, many flights were delayed or canceled due to bomb threats. In situations like flight delay, the concerned airlines have to arrange for food, alternative flight or full ticket refund as per the instructions of the Directorate General of Civil Aviation (DGCA).
However, this relief does not apply when the delay is caused by extraordinary events, such as a bomb scare, which is beyond the control of the airline. This means that if the journey is canceled due to a bomb threat, the airline will not compensate for the loss. In such a situation, travel insurance can provide relief. Mainly international travelers can claim a refund for flight delays or diversions caused by a bomb scare, depending on the terms of the travel insurance policy.
International travel insurance coverage up to Rs 4 lakh International travel policies often come with large compensation. Trip delay coverage can range from Rs 4200 to Rs 84 thousand. Insurance companies provide coverage up to Rs 4 lakh for hotel stay in case of emergency. Besides, they also offer an allowance of Rs 10,500 per day in case of getting stuck on the way. However, this coverage depends on the policy and insurance company.
There are five types of travel insurance
- Domestic Travel Insurance: Its cover is limited to travel on domestic routes only. These policies generally cover expenses such as medical expenses, emergency transportation and lost or stolen items.
- International Travel Insurance: To travel abroad one has to take International Travel Insurance. Some countries have also made insurance mandatory for all tourists. These include countries like Schengen Area (26 countries of Europe), Cuba, Romania, Turkey and United Arab Emirates.
- Group Travel Insurance: If you are traveling in a group then this insurance can provide many benefits at low premium cost. Depending on the policy terms, things like damage to luggage, loss of passport, medical emergency, cancellation or interruption of the journey may be covered.
- Single Trip Insurance: If you do not travel much then you can take travel insurance for only one trip. Its premium is slightly higher than multi-trip insurance. It would be better to know the conditions beforehand.
- Multi Trip Insurance: If you travel several times a year, take out multi-trip insurance. It covers domestic and international travel. Coverage is usually one year, but the coverage period varies for each trip (180 days).
Premium up to 10% of travel expenses Travel insurance premium ranges from 4-10% of the travel expense. It depends on many things like destination, coverage, age of the covered person, insurance company etc.
Keep these things in mind before buying travel insurance
- Travel insurance may be included in your tour and travel package. If you know this then you can avoid this expense.
- Travel insurance is available free with many tour packages. Insurance is also available on booking travel through many credit cards.
- Find out if your credit card offers any benefits when you buy air or train tickets, rent a car or book a hotel.
- Many travel rewards cards come with built-in travel insurance and other benefits. Pay premium only for covers other than these.
- There are travel insurance schemes for senior citizens and students with different terms and conditions. These are specially designed for the needs of senior citizens and students.
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