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Travel insurance is important because it takes care of emergencies or adverse conditions that could come up in the future while you are travelling. Travel insurance provides coverage for medical emergencies and other losses that might occur from the time a person leaves his/her country to the time the traveller returns back home.
Student travel insurance:
These plans are specifically designed for students in age group from 16 to 35 years going abroad to study. Typically, student travel insurance covers accidents, medical expenses, emergency evacuation, checked baggage loss, loss of passport, personal liability, study interruption due to medical reasons, compassionate visit, bail bond, cancer screening and mammography examinations. The covers offered differ from the regular travel insurance because they are tailor-made to meet the needs of students and also cover university requirements.
“Keeping in mind the fact that the student is away from home, some additional benefits are included, such as sponsor protection, two-way compassionate visits or study interruption coverage,” said Gaurav Garg, managing director and chief executive officer of Tata AIG General Insurance.
Generally, a student policy can be issued for a maximum period of one year at a stretch, and can be extended for an additional two years, subject to a new ‘good health, no claim’ declaration by the student every year. Assuming the course duration is five years, the policy can be extended up to the time of course completion, subject to additional ‘good health, no claim’ declaration and standard travel underwriting guidelines.
Some universities such as those in the US, Australia or Schengen countries have a mandatory requirement of an insurance policy at the time of applying for the course. Even if the university or country does not insist on insurance, it is advisable to buy a cover from India, since the medical costs and healthcare expenses are much higher in the developed countries.
Although, students can buy a similar policy from their universities, there is a significant cost difference between purchasing a policy from India for similar coverage and one that the university offers under its plan. The student must also ensure that the policy coverage is comparable with the minimum health insurance requirements stipulated by the university.
Filing a claim:
The process of registering a claim is very much the same as in India. “In the event of any medical or non-medical emergency, the student needs to register the claim at helpline numbers for availing any assistance and claim registration,” said Neelesh Garg, executive director of ICICI Lombard General Insurance. Insurers offer both reimbursement and cashless services, in case of medical claims. However, to avail cashless benefits, students must carry his/her student identity proof and copy of the policy.
Generally, there are sub-limits for certain features on these insurance policies. “Supposing a student has taken a policy with sum insured of $25,000 and he/she avails a two-way compassionate trip, these would be treated as two claims triggered in the policy, one against medical expenses benefit and the other against the compassionate visit benefit,” said TA Ramalingam, head of underwriting at Bajaj Allianz General Insurance.
Costs:
Premium depends on the country chosen because the policy is priced keeping in mind the healthcare costs in the visiting country. Travel insurance premium for the US-bound students is most expensive. For example, a one-year student travel policy from Tata AIG, for a student travelling to the US for university education with coverage of $50,000, the premium is Rs 20,199, while a policy with same features and same sum assured for student travelling to other countries will cost Rs 8,419.
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