Written By Manas Kapoor:
Unexpected expenses and medical issues are the last thing anyone wants to deal with while on a trip. But, if those situations do arise, travel insurance comes in handy — it helps you handle such emergencies without breaking the bank. If your flight gets cancelled or delayed, or if you have a medical emergency abroad, travel insurance can cover the costs. It also provides benefits for missed connecting flights, accidents during your journey, and even missing luggage. It ensures you are prepared for any surprises that may come your way during your travels.
However, off-late, there has been a troubling increase in travel insurance fraud and mis-selling. A significant chunk of travelers neglect to conduct thorough research and rely solely on what their agent is offering when buying travel insurance. This limited awareness can leave one vulnerable to potential scams and frauds. The most common mis-selling practices in the market:
Not disclosing important details: Some agents may not share vital coverage details, such as limitations or exclusions associated with the policy. This lack of transparency can mislead travelers into believing that they have comprehensive coverage when they don’t.
Selling unnecessary coverage: Travelers may be convinced to purchase extra coverage or add-ons that they do not need. For example, an insurance agent might push extreme sports coverage on a traveler with no intention of engaging in such activities during their trip.
Overcharging: Travelers may be charged more than the fair market rate, capitalizing on their limited understanding of insurance pricing norms.
Travelers can avoid becoming victims of such pitfalls by taking a few precautionary steps, such as follows:
Know what you’re paying for
Understanding the fine print of your travel insurance policy is the first and most crucial step in safeguarding your interests. Before committing to any policy, take the time to thoroughly read and comprehend the terms and conditions. Travel insurance policies typically cover a range of scenarios, such as trip cancellations, medical emergencies, lost baggage, and more. However, the extent of coverage can vary significantly from one policy to another. While some policies offer comprehensive coverage, others may only provide basic protection. It’s essential to align your insurance needs with the level of coverage you’re purchasing.
Ask questions, don’t leave scope for ambiguity
When purchasing travel insurance, don’t hesitate to ask questions and seek clarification on any doubts you may have. Here are some key questions to consider:
What are the policy’s exclusions? Knowing what is not covered by your insurance policy is just as important as understanding what is covered.
Are there any additional riders or optional coverage available? Some policies offer add-ons for specific needs, such as adventure sports or rental car coverage. Assess if these are relevant to your travel plans.
How does the claims process work, and what documents are required? Familiarize yourself with the steps you need to take in case of an emergency and what documentation is necessary to file a claim.
Shop around and explore different options
While buying travel insurance, always make it a point to shop around for different options. Otherwise, you may miss out on more affordable options or coverage that fits your needs better. Start by comparing plans from different insurers online. This will give you a sense of the price range for your desired coverage.
Keep in mind that the cheapest policy may not always be the best, as it could have limited coverage or high deductibles. Also consider the reputation and track record of the insurance provider – see if they have a good record of paying out claims promptly.
Do your part by disclosing all relevant information
To avoid mis-selling, it’s crucial to be transparent and provide insurers with all relevant information about your health, travel plans, and circumstances. Failure to disclose pertinent details can lead to claim denials or disputes. Be sure to mention any pre-existing medical conditions, ongoing treatments, or medications you are taking. Even if you don’t think a certain detail is significant, it’s better to disclose it to avoid complications later. If your circumstances change after purchasing the policy (e.g., you develop a medical condition or decide to participate in high-risk activities), inform your insurer immediately. Some changes may require adjustments to your policy or additional premium payments, but it’s essential to maintain the integrity of your coverage.
Travel smart, travel safe, by doing your due diligence and taking these precautionary measures.
(The author is the business head- travel insurance at Policybazaar.com)
