Travelers insurance falls under the Non Life Insurance among the categorization of insurance. Well, Insurance can be define as a crucial factor to boost up the confidence by providing means to cope with risks faced and taken by people in their daily life. Insurance has emerged as a multidimensional business. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.
Travelers Insurance is an insurance product designed to cover the costs and reduce the risk associated with unexpected events during domestic or international travel. Travel insurance usually covers the insured in two main categories: costs associated with medical expenses and trip cancellations. When traveling, costs associated with unexpected events can be much higher, which poses an increased risk to travelers. Travel insurance attempts to reduce these risks.
Objectives of Travel Insurance
Travel insurance primary objective is to protect the financial investment in a trip. There are various objectives carried by Travelers Insurance some of them are jotted down:
- Travel insurance protects travelers while they are outside their home province.
- Insurance covers unexpected emergency expenses, such as medical care in case of an accident or sudden illness, Rental Car damage coverage etc.
- Provides Baggage insurance.
- Provides Emergency Assistance Services
- Provides Concierge Services.
- Travel insurance will often cover expenses related to unexpected cancellations by carrier or destination providers.
- Support Older travelers
Categories of Travel Insurance
There are two major classes of travel insurance:
- International travel insurance:
The insurance covers travel outside your country of residence. This is an essential part of international trips because many healthcare arrangements won’t apply in other countries (except EU nationals seeking medical attention in other EU states) and you either need insurance or to be able to pay all medical bills out of pocket.
- Domestic travel insurance:
The insurance covers travel inside your country of residence. These policies are generally cheaper than international policies because they usually don’t include medical coverage–in your own country, you presumably have other arrangements. They focus on compensating you for purely travel-related problems like cancellations and closures. They are also much less essential and you can consider their worth on a trip-by-trip basis.
Where to buy
- Purchase travel insurance for international trips through an insurer in your country of residence, which means the country to which you’d want to be evacuated to or return to after a serious medical emergency and/or the country you’d need to travel to if a family member became very ill (these are assumed to be the same country).
- You can obtain travel insurance through your travel agent, your normal insurers, or any one of a number of specialist travel insurers.
- Very regular travellers may find that “ongoing” or “periodic” travel coverage, typically purchased a year at a time, can be cheaper than insuring each trip individually. Most major travel insurers offer such policies. Large businesses often purchase such coverage for their key or frequent travelers.