Travel insurance plan: Should you buy a travel insurance plan with Covid-19 coverage?

Rising airfares and fears that travel plans could be blocked due to Covid-19 have made travel an expensive affair. However, travel insurance with Covid-19 coverage may be a good idea in such circumstances. One-way travel insurance with Covid-19 coverage is ideal for international family travel.

General travel coverage

Travel policies typically cover medical expenses incurred while travelling, medical evacuation or repatriation costs, personal accident coverage, accidental death or disability coverage. In addition, they also cover loss or delay of luggage, loss of passport, delay or cancellation of trip, etc. It is extremely important to check the exact cover offered and compare it with other travel policies before buying one.

Specific Covid-19 cover

This covers medical expenses incurred, if the insured is diagnosed and hospitalized with Covid-19 outside India during the trip. It also offers trip cancellation cover for the non-refundable portion of flight and hotel bookings, if the co-traveler or an immediate family member of the insured is diagnosed with Covid-19. Trip interruption costs may be covered if a trip had to be cut short because the insured or a family member contracted Covid-19. Cover is automatically extended for a period of time if a lockdown is imposed in the destination country.

Pre-existing illnesses

The insured must declare pre-existing conditions at the time of purchasing the policy. Insurance policies also have a deductible amount that must be paid before the claim is paid by the insurance company.

Points to note

• Policies can be chosen as single-trip, multi-trip, or one-year travel insurance plans.
• It is mandatory to have travel insurance when visiting certain countries for the purpose of visa processing.

(Content on this page is courtesy of the Center for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)