A Short Introduction to Travel Insurance

What is Travel Insurance?emergency dental costs. Almost all travel insurance
In general terms, travel insurance protects all holidayplans work by reimbursing the traveller after they
costs against adverse events such as cancellation andhave paid locally for treatment. Claims are usually paid
interruption and also reimburses medical expenses,within 7 - 10 days. Pre-existing conditions are covered
the loss or damage of property and transit delays.by most policies if the policy is purchased within (at
Travellers are compensated if they have to cancel orthe most) 21 days from the date the traveller made
interrupt their travel, they will also be covered shouldthe first payment or deposit.
they need emergency medical treatment, medical3. Death of travellers:
evacuation and other situations.Air Flight accident - this covers death or
Categories of travel insurance:dismemberment during an air flight only. Usually
1. Delays and cancellation - including curtailmentprovides the highest amount of coverage due to
Cancellation: Reimbursement comes into effect iffairly low likelihood of this occurring.
travellers have booked and paid for a holiday, but areCommon carrier - Covers death or dismemberment
unable to embark because of personal illness orwhile travelling on public transport such as a plane,
injury, death (of the individual or of a familyferry, train bus or taxi.
member), adverse weather conditions, airline strikes,Accidental death - covers death or dismemberment
terrorism, bankruptcy, sudden unemployment, juryat any time of your trip. Usually provides the lowest
duty or by sustaining serious damage to their homeamount of coverage due to a higher risk
causing it to be uninhabitable due to fire or flooding.4. Personal effects: Loss or damage
Interruption: Insurance companies pay money to-Rental Car damage - Reimburses travellers for
policy holders abroad if they have to cut short theirdamage or loss to a rental vehicle. It is designed to
trip due to illness, death (of the traveller or a familyallow the traveller to decline collision damage waiver
member), terrorism, weather, airline strikes,(CDW) coverage offered by the car rental
bankruptcy, sudden unemployment, and othercompanies. Liability coverage should still be purchased
adverse conditions which mean that, due to eventsthrough the car rental company. Rental Car Damage
outside the control of the holiday-maker, a trip has tocoverage is also often included with the credit card
be curtailed.used to pay for the car rental which is often
Delay: This reimburses travellers for hotel, food ormatches the coverage provided in the policy.
clothing expenses in the event of a flight delay. Some-Baggage loss - reimburses travellers for lost, stolen
plans also cover costs associated with catching upor damaged personal items. This coverage is usually
with a cruise should another delay cause the travellerrestricted to the duration of the trip and not confined
to miss embarkation.to baggage damaged or lost by the airline. There are
2. Health and Medical reasonstwo policy limits, total claim and per item maximum.
Medical evacuation: This provides emergencySome policies also place limits on the type of items
transportation to either a local hospital in the eventthat can be claimed for - such as precious jewellery,
that the traveller is unable to get there bylaptops and sporting goods.
themselves or back to a hospital near the traveller's-Assistance services - provides a 24-hour collect
home. If family members are covered on the sametelephone advice and assistance service to travellers.
policy they can return home alsoThis service can be used anytime a traveller needs
Medical and health reasons: Reimburses medical andadvice.