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Travel insurance: Prevention
is better than bills!
Most people
are unaware of the significance of travel insurance. They are reluctant to
get themselves insured just to save a few dollars. MOHAN BABU warns
that it is necessary to take travel insurance as the consequences can lead
to financial devastation
Indians and
NRIs are found in almost all corners of the globe, with nearly two million
people of Indian origin settled in the US alone. Therefore, it is not
surprising that hundreds of thousands of Indian visitors travel abroad every
year. Scores of them annually visit their next-of-kin abroad. Thousands of
students and businessmen too travel abroad for short visits to attend
business meetings, seminars, conventions, etc. Even with the number of
visitors travelling abroad, preparing for a foreign trip involves rigorous
planning. Along with visas, documentation, foreign currency, travel
itinerary, etc, many travellers also invest in buying travel insurance.
Because of the high initial cost of such insurance policies for travelling
abroad, some people cut corners and try to save a few dollars by avoiding
travel insurance. The consequences of such a move can be financially
devastating.
Given the
risks involved in foreign travel, along with the high cost of medical
services in foreign countries, it makes a lot of sense to insure oneself
against the worst-case scenario. Most of us try to avoid accidents and plan
for contingencies. However, human tragedies involving injury,
hospitalisation or death can occur at inopportune times, putting an undue
financial strain on self and dependents. The average cost of even a simple
hospital stay in the US can run into thousands of dollars. The entire
medical system in the US is based on insurance and although one will not be
denied medical care in an emergency, the patient or their dependents are
expected to reimburse the medical care providers.
Short-term
visitors, those on businesses or visiting friends or family, are especially
vulnerable since they can be lulled into a false sense of security by
presuming that their regular medical policies provided by employers in India
(or native lands), will cover them. That is not true since most insurers of
regular policies explicitly exclude foreign travel. Even students coming to
the US to study may find it intriguing that although universities may
provide plans that cover them after they register as full-time students,
they may not be covered when school is not in session.
Where to
buy the policies?
As with other
products and services, thousands of companies provide insurance policies of
different kinds, ranging from very basic “emergency” policies to extensive
policies with in-depth coverage. Even the length of coverage, premium,
deductible payable, number of people covered, area of coverage (local,
country wide or global), may vary from one provider to another. Because of
the complex nature of insurance policies, the insurance industry in the US
and elsewhere is highly regulated. It is advisable to work with a registered
insurance dealer who can help one work the way through a maze. There are
also a number of specialised insurance vendors who have sophisticated
interfaces on the Web, which allow visitors to view brochures, compare
policies and even buy the policies directly using a credit card. My
favourite is GaramChai.com, a niche portal for Indians in the US. Checkout
www.Garamchai.com/TravelInsurance.htm. Also the section of Frequently
Asked Questions:
http://www.garamchai.com/InsuranceFAQ.htm
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