Travel Insurance
Travel Insurance — is insurance that covers the expenses during the trips. The main goal of travel insurance is the protection of the traveler's health and baggage. Coverage involves the reimbursement or payment of the expenditures related to accidents, health issues, natural disasters, and sudden cancellation of tickets.
What is Travel Insurance
Travel insurance is the refund of expenditures related to unexpected circumstances that happened during the trip. The type of events subject to the reimbursement is indicated in the travel insurance contract. Usually, travel insurance is obtained before the trip during the purchase of a ticket or travel visa.
What travel insurance covers:
- loss of baggage;
- loss of documents;
- medical care;
- accidents;
- cancellation of flight;
- terrorist attack;
- evacuation;
- natural disasters;
- death of the insured person.
However, certain cases aren’t subject to coverage. These are the cases related to the situations when the traveler knew about the possible difficulties but consciously ran into danger.
Travel insurance doesn’t cover the following situations:
- preexisting illnesses;
- pregnancy and childbirth;
- pandemics;
- traumas received during extreme sports;
- problems related to the trip to the war zone or zone of political instability;
- problems related to drug abuse.
The cost of travel insurance depends on several factors. They are the number of covered persons, number of included services, the purpose of visit, and the country of destination. Popular tourist countries usually provide discounts and special programs. The insurance rate is set in monetary units per one day of stay abroad.
There are various types of travel insurance. They may be provided to one person or the whole group. The insurance can be valid only during the trip or during the entire year, if necessary. Also, there are specific programs for students, sportsmen, and politicians.
Types of travel insurance:
- Medical insurance. This insurance covers hospitalizations and cases of emergency medical care that happened during the trip.
- Cancellation insurance. This insurance covers the cancellations of tickets and other paid services that were caused by external reasons (cancellation of a tour, natural disaster, war conflict).
- Flight insurance. This insurance covers the cases of accidents during the flight.
- Baggage insurance. This insurance covers the damage and loss of baggage.
- Evacuation insurance. This insurance covers the expenditures related to transportation to the nearest medical center.
The tourist company provides the traveler with an insurance policy. This document allows them to receive medical care and refund the compensations. In case of an insured event, the tourist should call one of the centers, the telephone numbers of which are indicated on the policy. The center transfers the call to the nearest bureau, which is directly involved in the organization of the service, and confirms that all expenses have been paid.
These centers belong to the assistance company. The assistance company is a service company that acts as an intermediary between a tourist, an insurer, and medical institutions in different countries. It is impossible to buy a policy directly from the assistance company because the insurance company will cover the costs, and the assistance organizes medical care and specific medical services.
Advantages of Travel Insurance
Travel insurance can simplify many financial issues that can happen during the trip. That’s why many travelers acquire the insurance and ask the touristic agencies whether they provide it.
Here are the main benefits of travel insurance:
Compensation for the medical expenses. There can be accidents and traumas caused by the different circumstances and the treatment can be quite expensive. The travel insurance will cover the cost of the medical care, medicine, and hospital stay. Sometimes the deceased require transportation via air-medical services and the transportation also can require payment.
Compensation in case of force majeure. Another important issue is natural disasters. They are very destructive and unpredictable. Many popular tourist countries are located near the sea, and storms and tsunamis are common things there. Other popular tourist destinations are related to the island countries. The islands are characterized by frequent earthquakes and hurricanes. Travel insurance can cover the loss of belongings and medical expenses for the injured.
Compensation for additional transport expenses. Many things can occur during the trip. There can be car crashes, air accidents, or shipwrecks. The travel insurance covers the cost of the lost luggage and transportation to a safe place.
Compensation for canceling the tickets. Sometimes the tickets are unexpectedly canceled. It can happen because of a natural disaster, political crisis, or the bankruptcy of the hotel. The travel insurance allows the individuals to refund the money spent on the tickets.
Psychological comfort. Even if there are no accidents and disasters during the trip, travel insurance provides psychological comfort. The traveler knows that if something happens, the expenses will be compensated. In this situation, travel insurance is necessary to view as an investment in proper safety.
