Travel insurance policies are taken by travelers to cover the risks associated with their travel. Various types of policies are available for medical expenses, disability cover, and even nonmedical expenses. But before buying any travel insurance policy, it is vital to understand one’s needs and coverage provided by that policy. Policy documents are confusing and full of technical terms. Hence it becomes necessary to have an understanding of the basic terms used in travel insurance as buying a travel insurance policy without understanding its basics may prove to be futile.
Here are some terms used in travel insurance
Accidental Death/ Dismemberment – An unintended and unexpected event that occurred on the trip which resulted in death or loss of body parts.
Accommodation – A hotel or lodge a person has made a reservation to stay while on a trip for a fee.
Baggage – The luggage, equipment, valuables, clothing, personal effects carried by a person on his trip.
Baggage Delay – It is the delay in the arrival of the baggage at the destination mostly due to redirection to a different location.
Loss of Baggage and Personal Effects – The damage caused due to the loss, theft, misplacement of luggage and other travel documents.
Beneficiary – The person named in the insurance policy to receive the insurance claim in case of the death of policy owner.
Benefits – The amount of claim paid by the insurance company to the beneficiary for the claim made by the insurer against the travel insurance policy.
Cancel for Any Reason – It is the coverage provided to the person in case he is not able to take the trip for any reason.
Claim – Request for payment in case of any event covered in accordance with the policy.
Co-Insurance – The amount paid by the insured after reducing the deductibles.
Deductible – The amount paid by the insured before the insurance company starts paying. It may be an amount for a year, policy duration or a particular event.
Emergency Benefits – The expenses incurred in sending a person who is injured or sick to a place where he can get medical help.
- Flight Insurance – Fly with Confidence and Safety
- Cheap Holiday Travel Insurance
- Cheap Single Trip Holiday Insurance
Exclusions – The expenses clearly mentioned in the policy document for which the insurer will not make payment.
Financial Default – A cessation of operations of the airlines or tour operator with/without filing for bankruptcy.
Family Plans – Insurance plans that are designed to cover all members of a family when they are traveling together.
Insured – The person who is covered under the insurance policy as per the terms of the policy.
Multi-Trip Plan – It is also called the annual trip insurance plans. It covers all trips of a specified duration taken within a year.
Non Refundable travel Expenses – These are usually the cost of trips like airline tickets for which compensation cannot be claimed.
Pre Existing Medical Condition – The medical problem, disease, injury or ailment that exists before applying for the insurance policy.
Premium – The cost of getting the insurance cover.
Primary Coverage – The coverage offered by insurance companies irrespective of any other coverage that the policyholder has.
Primary Residence – It is the fixed or permanent address of a person which is usually the place where a person mainly resides.
Secondary Coverage – It covers only those expenses that are not covered under primary coverage. It is essential to have a primary coverage plan.
Single Trip Plan – It is mostly for people who are not frequent travelers and covers a single trip.
Umbrella Package – It includes the additional services or coverage amount added to an existing travel plan.
The terms and conditions of a travel insurance policy differ with situations so it is possible that a particular term has been specifically interpreted or excluded from the policy document.
Choose a policy to suit your needs and travel without risk.