Travel insurance is insurance that is intended to cover medical expenses, trip cancellation, lost luggage, flight accident and other losses incurred while traveling, either internationally or domestically.
Travel insurance can usually be arranged at the time of the booking of a trip to cover exactly the duration of that trip, or a "multi-trip" policy can cover an unlimited number of trips within a set time frame. Some policies offer lower and higher medical-expense options; the higher ones are chiefly for countries that have high medical costs, such as the United States.
The most common risks that are covered by travel insurance plans are:
Medical treatment, including transportation to the medical facility.Cancellation, curtailment and trip interruptionThis section covers any unused travel and or accommodation costs, pre-paid charges (including any additional travel expenses incurred, provided they are deemed reasonable and necessary) if a trip is canceled or cut short under a variety of circumstances, which may include any of the following, depending on the policy:
death, bodily injury, illness, disease, or pregnancy complicationscompulsory quarantinejury servicebeing called as a witnesstermination of employment (provided you did not know about it before you booked the holiday)being called up if you are a member of the armed forces or other public defense or safety organizationprohibition of travel by the government to the intended destinationofficially recommended evacuation from the intended destinationofficial advisory against going to or remaining at the intended destinationdeath or serious illness of a family member (subject to age restrictions).Repatriation of remainsReturn of a minorTrip cancellationTrip interruptionVisitor health insuranceAccidental death, injury or disablement benefitOverseas funeral expensesLost, stolen or damaged baggage, personal effects or travel documentsDelayed baggage (and emergency replacement of essential items)Flight connection was missed due to airline rescheduling or delay.Travel delays due to weatherHijackingMedical expense coverage can be per-occurrence or maximum-limit.
Some travel policies will also provide cover for additional costs, although these vary widely between providers.
In addition, often separate insurance can be purchased for specific costs such as:
Pre-existing conditions (e.g. asthma, diabetes)Sports with an element of risk (e.g. skiing, scuba diving)Travel to high risk countries (e.g. due to war, natural disasters or acts of terrorism)Additional AD&D coverage3rd party supplier insolvency (e.g. the hotel or airline to which you made non-refundable pre-payments has gone into administration)Acute onset of pre-existing conditionsPre-existing medical conditions, or travelling for the purpose of receiving medical treatment.Elective surgery or treatmentWarTerrorism - Most trip cancellation policies include terrorism but only when there is an act of terrorism that meets the policy's criteria including definition, place of occurrence and date of occurrence.Injury or illness caused by alcohol, drug use, or reckless behaviour.Travel insurance can also provide helpful services, often 24 hours a day, 7 days a week that can include concierge services and emergency travel assistance. Pre-existing medical conditions must be declared prior to the trip start date. In case you ignore this requirement and fall ill during your trip abroad, you may find that you are not covered. The European Health Insurance Card (EHIC) entitles to treatment in state-run hospitals in EU countries and Iceland, Norway, Liechtenstein and Switzerland but it is not a substitute for travel insurance.
