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March 1, 2024

Know All About Trip Cancellation Coverage Under Travel Insurance

12:08 pm

We must schedule transport, lodging, and any other expenses well in advance when arranging a trip. Additionally, it is advisable to plan ahead for unforeseen circumstances like sudden cancellations brought on by unforeseen events or losing luggage while travelling, which is why travel insurance cover was created.

Specifically, trip cancellation insurance covers the case where you are compelled to cancel your trip or reservations for circumstances beyond your control, including becoming critically ill or hurt a few days prior to your departure. You can receive reimbursement for all of your non-refundable travel expenses thanks to this coverage.

How does travel insurance operate?

In addition to dealing with the inconvenience and disruption of having to change your travel plans, having to pay cancellation costs can be a significant financial hardship. The majority of travel and lodging companies charge larger cancellation fees and offer smaller refunds the closer the departure or check-in date gets.

When completing cancellations, you must notify them as soon as possible (preferably, five days before the event) and submit supporting documentation (e.g., medical certificate, a certificate from employer). Because different travel and lodging providers have different cancellation policies, it depends on when you cancel if you will be charged a portion of the whole cost or forfeit your deposit. The full cancellation price levied by the suppliers is covered by international or domestic travel insurance.

Cancellation insurance is usable if the following circumstances apply:

  • Appears in the policy
  • After you purchased insurance
  • Is unexpected
  • Is accidental

A few instances of legitimate cancellation scenarios may include:

  • Passing away of a family member
  • Severe illness or injury (applicable to you or family)
  • Damage to the home
  • Date modifications for your paid leave
  • Natural disaster or terrorist assault at the destination
  • You’ve been refused a tourist visa
  • Having to take an exam again
  • Employment loss or employment gain
  • Identity theft or ticket fraud

The grounds for cancellation may differ depending on the policy, so be sure to take attention of the exclusionary language.

Several exclusions might include:

  • Strikes involving organised public transportation unless the insurance period begins before the strike is anticipated.
  • An airline, cruise line, or tour operator may modify or cancel your travel plans due to bad weather.
  • Changes made individually by the insured or their travelling companion to their travel plans for any reason.
  • An adverse shift in the insured’s financial situation.

Refer to the policy’s ‘General Exclusions’ as well before you buy travel insurance online.

Insuring against trip cancellation:

When making your travel arrangements, you can purchase trip cancellation insurance at the travel agency’s or the tour operator’s website. The overall cost of the insurance varies based on the coverage you choose and is proportional to the cost of the trip.

Is trip cancellation covered by travel insurance?

Yes, travel insurance does cover trip cancellation as well as medical costs, lost or stolen property, delayed flights, and emergency airlifts, provided you fall within the guidelines of the claim. The most often used travel insurance coverage is trip cancellation. You should get travel insurance as soon as you’ve made your vacation arrangements because it offers more complete protection against various financial hazards.

In summary, travel insurance policies are individualised and based on your insurance company. Therefore, it is crucial to thoroughly read the small print and understand the validity and restrictions of the coverage. While trip cancellation policies are required, flight insurance policies will provide you with better protection because they not only cover unforeseen cancellations but may also assist with making arrangements for a temporary passport in the event that you lose yours. It will make for a more relaxed journey.

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions,

limitations, terms, and conditions, please read the sales brochure/policy wording carefully

before concluding a sale.

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All about Indemnity Health Insurance That You Should Know!

11:49 am

You shouldn’t have to worry about medical costs when it comes to your health and your family’s health, whether hospitalisation is unexpected or planned. A safe and reliable solution to reduce these medical costs is health insurance. There are many types of health insurance plans that you can consider. Indemnity Health Insurance is one of them. Continue reading to learn more about indemnity health insurance plans and their advantages.

What is indemnity health insurance?

Health insurance programmes, known as indemnity policies, cover the real medical costs associated with hospitalisation and reimburse you for them. According to the terms and conditions, you may make claims up to the maximum amount of the sum covered. If you have indemnity health insurance, the insurer may cover the full amount of the medical bill, excluding any deductibles, when you are hospitalised. Individual and health insurance plans for family are available for purchasing indemnity health insurance.*

Why choosing indemnity health insurance is essential?

The following are the benefits of selecting an indemnity-based health insurance plan.

  1. Rising medical expenses: Medical care is expensive. An indemnity plan could help with the fees in the event of an unforeseen incident.
  2. Reduce personal expenditures: In the event of a planned or unforeseen hospitalisation, an indemnity-based health plan could pay the entire medical expenditure, excluding the deductibles and other related costs.

Advantages of purchasing indemnity health insurance:

The key benefits of choosing indemnity health insurance are listed below.

  1. Flexibility in hospital choice: You can select the hospital from the company’s network based on your preferences. The advantage of a cashless facility is that it eliminates the worry of having to pay a large medical bill upfront and then get reimbursed later.*
  2. Widespread coverage: Pre- and post-hospitalisation costs, ICU costs, room rent, surgeries, diagnostic procedures, medication, daycare costs, and in-patient costs, including physician fees, could be covered.*
  3. Affordable plans: Indemnity health plans can come with deductibles. The cost of the health plan decreases if you choose a larger deductible. Since you are prepared to pay out of pocket, the insurer faces less risk, which results in a lower cost for your indemnity health insurance plan.*

 

Cons of Health Insurance Plans with Indemnity:

Health insurance plans with an indemnity component don’t have many drawbacks. However, deductibles are one of the major drawbacks of indemnity-based health insurance plans; as a result, you must pay a specified amount of the cost out of your own pocket.

Inclusions and Exclusions:

Inclusions:

  • In-patient hospitalisation (a minimum of 24 hours of hospitalisation)
  • Pre and post-hospitalisation
  • ICU
  • Diagnostic procedures
  • Daycare services
  • Medicines*

Exclusions:

  • Pregnancy
  • Existing illness
  • Dental/cosmetic procedures
  • HIV/congenital disorders
  • War/ intentional injuries
  • supplies like a PPE kit, etc.*

Costs and deductibles for the Indemnity Health Insurance Plan:

Indemnity-based health plans are priced similarly to other types of health insurance based on the beneficiaries’ various characteristics like age, pre-existing conditions, the amount of insurance, the number of beneficiaries, etc., are a few of them. Deductibles are present in the majority of indemnity policies. As a result, you must pay a set sum out of your own pocket.*

Important things to note about indemnity health insurance

To gain the most benefit from indemnity-based health insurance, consider the following factors before making your decision.

  • Most indemnity-based health plans often cost more than fixed-benefit plans.
  • When the insurer resolves the claim, deductibles are taken into account.
  • An online insurance is a good option for a seamless experience.
  • Usually, there is a 30-day waiting time before you can utilise the coverage.

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

 

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

 

Read More