Describe travel policy.

Travel insurance policy

A travel insurance policy is a type of insurance coverage, which covers hospitalization and medical costs during a person’s travel in a foreign country.

Travel insurance policy is referred to as ‘holiday insurance’. The most important thing about this coverage is that it encompasses all the kinds of vacations and business travels. A travel insurance policy is extremely beneficial, and its coverage is ‘cost-efficient’.

In general, companies sell travel insurance policies with many benefits to the travelers. This policy offers single-trip coverage, if a person is planning one trip overseas. And, the policy offers a multiple-trip policy, if a person is planning for many trips overseas, in a year.

Travel insurance

Travel insurance covers all individuals (traveling abroad) against risks like baggage loss, travel accidents like injuries, illnesses and medical contingencies with hospitalization. In India, this insurance is popular now among international travelers.

Accident insurance

Accident insurance covers accidental injuries and deaths. Accidental policy in an insurance organization provides benefits for individuals and families. With the increase in sales of automobiles, there is a huge growth in auto accidental insurance. The different types of accident insurance are: NRI accident insurance: This insurance policy covers Non-Resident Indians from 3 months of age to 70 years. This policy is comprehensive insurance that covers accidental loss, permanent disablement due to accident, medical expenses, education funds of dependent children, etc.

Personal accident insurance: Personal Accident insurance is an insurance policy for individuals or groups that protects against personal accident or illness. Personal accident insurance covers the expenses from an accident with a specified sum payment (a daily or monthly amount) or a payment for loss of life due to an accident. Accident and health insurance: Accident and health insurance policy provide coverage when the policyholders or their dependents fall sick, or get injured or die due to an accident. Accident and health insurance policy covers physician’s visits, medical procedures etc.

Premium amount calculation for accident insurance

The premium amount paid, for accident insurance, depends on many issues. For an accident insurance policy, the occupation of insured person is the main decisive factor for calculating the premium. The individuals are placed in a risk group according to their profession, and the premium is calculated based on it. People who work in hazardous conditions need to pay higher premiums. In personal accidental insurance policy, age factor is not of much importance. But in Mediclaim policies, age and health conditions determine the premium. Premium is computed on monthly or quarterly or half-yearly or yearly basis.

Claim system for accident insurance

The primary step for raising a claim is to fill a claim form. The company inspector analyses the hospital and nursing bills to create a report. The processing period for claims is between 7-21 days.

The documents necessary for claiming accident insurance are: Hospital bills. Disability documents from doctor. Lab reports. Police records.

The insurance companies that provide accident insurance in India are: 

Bajaj Allianz (provides accident and injuries coverage). 

The New India Assurance (provides accident coverage policy). 

Tata AIG general insurance (for accidental protection). 

United India Insurance (provides accident & hospitalisation policies). 

HSBC (provides MahaRaksha personal injury policy).