Travel is about exploring new places, experiencing other cultures, spending time with family, and making memories. Even a well-organised trip can be thrown into disarray by unforeseen circumstances such as a medical emergency, a flight cancellation, lost luggage or a last minute change of plans. All of which can significantly affect cost and convenience.
Travel insurance for the traveller can go some way to mitigating the financial impact of certain unforeseen events that occur during a trip. The type of cover available will vary but may include cover for eligible medical expenses, trip cancellations, loss of baggage, travel delays and emergency assistance. It can cover both domestic and international travel, depending on the policy.
With the digital platforms making it so easy to compare policies and to buy them, the traveller can now look at online insurance options as part of their pre-trip planning. Knowing what the policy covers, what it doesn’t cover and the various exclusions can go a long way to helping the traveller make a sound decision and to feel more at ease as they go about their travels.
What Is Travel Insurance for Travellers?
Travel insurance provides financial protection against certain travel-related risks. It’s there to help an eligible traveller manage the cost of a covered claim should a claim arise as a result of an unforeseen event during the course of their trip.
Available benefits vary by insurer, the policy you select, the destination, and the length of the trip. Typical benefits will be emergency medical treatment and hospitalisation, trip cancellation, baggage loss, flight delay and emergency evacuation.
For instance a traveller going to another country might find themselves in need of hospital treatment as a result of an unforeseen illness. If that event and the associated costs are covered by the policy then the travel insurance may either reimburse the eligible costs or arrange the necessary assistance in accordance with the policy.
Similarly, a traveller whose luggage is lost on a connecting flight may be entitled to compensation under the baggage benefit (subject to the relevant limits and conditions).
Travel insurance won’t cover every possible inconvenience or expense. You need to read the policy wording very carefully to see exactly what it does and what it doesn’t do.
Why Do Travellers Need Travel Insurance?
Travel insurance matters most when unforeseen circumstances occur before or during a trip. Here are a few reasons travel insurance might be worthwhile.
1. Financial Protection Against Medical Emergencies
The main reason to consider travel insurance is to counter unforeseen medical costs. An illness, accident, or sudden health issue whilst you’re away can require medical treatment.
For the international traveller the treatment cost in a foreign country can be extremely high. Even a relatively short hospital stay or an emergency procedure can be very costly.
Depending on the policy, travel insurance may cover eligible expenses related to:
- Emergency doctor consultations and treatment.
- Hospitalisation and medically necessary procedures.
- Emergency diagnostic tests.
- Prescribed medicines in relation to a covered medical event.
- Ambulance services (subject to policy conditions).
- Emergency medical evacuation (where applicable).
For example if a holidaymaker were to suffer an injury during their holiday and require hospitalisation the policy would cover the cost of eligible treatment up to the relevant limit.
Travellers should check the medical cover – the sum insured, the deductibles, the exclusions and the requirements for contacting the insurer in the event of an emergency. Pre-existing medical conditions may be excluded or may only be covered under certain conditions.
2. Protection Against Trip Cancellation
Travel plans can of course change due to unforeseen circumstances. A serious illness, injury or other covered event may prevent the traveller from travelling as originally intended.
In those circumstances, travel insurance may help you recover eligible non-refundable costs, subject to the policy’s cancellation clauses.
These expenses may include:
- Prepaid flight tickets.
- Non-refundable hotel reservations.
- Certain pre-booked tours or activities.
- Other eligible travel arrangements covered by the policy.
For example a traveller who is forced to cancel their holiday as a result of a qualifying medical emergency may be entitled to claim their eligible pre-paid expenses.
Cancellation cover will generally only apply in respect of the specified reasons. A change of mind, a personal scheduling conflict or an event which is excluded by the policy will not be covered. It is essential that travellers check the covered reasons and purchase requirements prior to selecting a plan.
3. Coverage for Lost, Stolen, or Damaged Baggage
Lost baggage can spoil a trip. To address this, travel insurance policies can cover loss, theft, or damage.
Some plans also offer a separate benefit for baggage delays. This will cover eligible purchases of essential items where your checked baggage is delayed for a period in excess of a certain threshold.
Travelers should report any baggage incident to the airline or the relevant authority, obtain a written copy of the report and keep all receipts for any eligible purchases. High value electronics, jewellery, cash and travel documents may be subject to limited or no cover under certain policies.
4. Assistance During Flight Delays and Travel Disruptions
Flight delays, missed connections and the like can lead to unforeseen expenses. You may find yourself having to organise meals, accommodation or alternative transport whilst you’re waiting for your flight to get going.
Depending on the plan, travel insurance may provide a fixed benefit or reimburse eligible expenses in the event of a covered delay or disruption which satisfies the policy conditions.
Coverage will depend on the length of the delay, the reason for the disruption, the type of booking and the benefit limit.
For instance a traveller facing a qualifying flight delay may be entitled to assistance with certain expenses under the policy. Not every delay qualifies for a claim.
Travellers should check the minimum delay period, the documentation required and the relevant exclusions before depending on this benefit.
5. Support During Medical Evacuation
In certain circumstances a traveller may require transport to a suitable medical facility or, where appropriate, repatriation to their home country.
Emergency medev is expensive, particularly if you need the specialist transport or an air ambulance.
These benefits can be particularly pertinent for those travelling to remote areas or taking trips that involve a significant amount of outdoor activity. The traveller should check the evacuation limit, the geographical restrictions and whether prior authorisation from the insurer’s assistance provider is required.
6. Financial Support for Trip Interruption
A trip may be terminated prematurely as a result of a covered emergency. For instance a trip may have to be cut short as a result of a serious illness or some other event specified in the policy.
Trip interruption cover may assist with certain eligible additional transport costs or unused prepaid arrangements (subject to the terms of the policy).
This benefit is distinct from trip cancellation. Cancellation covers a trip that doesn’t get off the ground at all; interruption covers a trip that has already commenced.
Travellers should look at both the benefits and be aware of the circumstances in which they apply.
7. Access to Emergency Assistance Services
Travelers can find it very difficult to work out how to access healthcare in a foreign country, where to find the right medical facilities, and how to report an emergency.
Some travel insurers do provide 24 hour assistance. Depending on the policy the service may be able to help you to find a medical provider, arrange eligible emergency cover or help you to understand the claims process.
Having the insurer’s emergency contact number and policy details to hand will make it far easier to get help if you need it.
Distinguish assistance from payment of expenses. The provider may assist in the coordination of a service but reimbursement or direct payment will still be subject to the terms of the policy and to the relevant authorisation requirements.
Conclusion
Travel can be full of the unexpected, even when you’ve meticulously planned every aspect. Travel insurance for the traveller can help with eligible medical expenses, trip cancellations, baggage loss or delay, travel delay and a number of other covered perils.
The benefits available will vary according to the policy so it’s important for the traveller to assess their destination, length of trip, medical requirements and the nature of the activities they’re going to be undertaking prior to making a decision. You can compare travel insurance policies online, but the right policy for you will suit your actual needs in terms of coverage, exclusions, limits, and the claims process.
