Travel insurance
Encyclopedia
Travel insurance is insurance
that is intended to cover medical expenses, financial default
of travel suppliers, and other losses incurred while travel
ing, either within one's own country, or internationally. Temporary 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.
Coverage varies, and can be purchased to include higher risk items such as "winter sports".
In addition, often separate insurance can be purchased for specific costs such as:
Usually, the insurers cover pregnancy related expenses, if the travel occurs within the first trimester. After that, insurance coverage varies from insurer to insurer.
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.
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
that is intended to cover medical expenses, financial default
Default (finance)
In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant of the debt contract. A default is the failure to pay back a loan. Default may occur if the debtor is either...
of travel suppliers, and other losses incurred while travel
Travel
Travel is the movement of people or objects between relatively distant geographical locations. 'Travel' can also include relatively short stays between successive movements.-Etymology:...
ing, either within one's own country, or internationally. Temporary travel insurance can usually be arranged at the time of the booking
Booking
Booking may refer to:* Booking , a Korean comics anthology magazine published by Haksan* Booking , the laying out of the plot before a professional wrestling match* An accounting system a.k.a...
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.
Coverage varies, and can be purchased to include higher risk items such as "winter sports".
Coverage types
The most common risks that are covered by travel insurance are:- Medical/dentalDentistryDentistry is the branch of medicine that is involved in the study, diagnosis, prevention, and treatment of diseases, disorders and conditions of the oral cavity, maxillofacial area and the adjacent and associated structures and their impact on the human body. Dentistry is widely considered...
expenses - Emergency evacuationEmergency evacuationEmergency evacuation is the immediate and rapid movement of people away from the threat or actual occurrence of a hazard. Examples range from the small scale evacuation of a building due to a bomb threat or fire to the large scale evacuation of a district because of a flood, bombardment or...
/Medical Air EvacuationAeromedical evacuationAeromedical Evacuation usually refers to specialized medical transportation units in the United States Air Force. Within the U.S. Air Force, AE is coordinated by Air Mobility Command located at Scott Air Force Base, Illinois...
/repatriationRepatriationRepatriation is the process of returning a person back to one's place of origin or citizenship. This includes the process of returning refugees or soldiers to their place of origin following a war...
of remains - Return of a minor child
- Trip cancellation/interruption
- Accidental death, injuryInjury-By cause:*Traumatic injury, a body wound or shock produced by sudden physical injury, as from violence or accident*Other injuries from external physical causes, such as radiation injury, burn injury or frostbite*Injury from infection...
or disablement benefit - Overseas funeral expenses
- Curtailment
- Delayed departure, missed connection
- Lost, stolen or damaged baggage, personal effects or travel documents
- Delayed baggage (and emergency replacement of essential items)
- Legal assistance
- Trip Cancellation
- Flight Connection was missed due to airline schedule
- Travel Delays due to weather
- Medical Emergency and hospital care (Accident or Sickness)
Optional coverage
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:
- Car rentalCar rentalA car rental or car hire agency is a company that rents automobiles for short periods of time for a fee...
collision coverage - Pre-existing conditionPre-existing conditionA pre-existing condition is a risk with extant causes that is not readily compensated by standard, affordable insurance premiums. Pre-existing condition exclusions by the insurance industry are meant to cope with adverse selection by potential customers. Such exclusions have become a topic in the...
s (e.g. asthmaAsthmaAsthma is the common chronic inflammatory disease of the airways characterized by variable and recurring symptoms, reversible airflow obstruction, and bronchospasm. Symptoms include wheezing, coughing, chest tightness, and shortness of breath...
, diabetes) - Sports with an element of risk (e.g. skiingSkiingSkiing is a recreational activity using skis as equipment for traveling over snow. Skis are used in conjunction with boots that connect to the ski with use of a binding....
, scuba divingScuba divingScuba diving is a form of underwater diving in which a diver uses a scuba set to breathe underwater....
) - Travel to high risk countries (e.g. due to warWarWar is a state of organized, armed, and often prolonged conflict carried on between states, nations, or other parties typified by extreme aggression, social disruption, and usually high mortality. War should be understood as an actual, intentional and widespread armed conflict between political...
, natural disasterNatural disasterA natural disaster is the effect of a natural hazard . It leads to financial, environmental or human losses...
s or acts of terrorismTerrorismTerrorism is the systematic use of terror, especially as a means of coercion. In the international community, however, terrorism has no universally agreed, legally binding, criminal law definition...
) - Additional AD&DAccidental death and dismemberment insuranceIn insurance, Accidental Death and Dismemberment is a term used to describe a policy that pays benefits to the beneficiary if the cause of death is due to an accident.-Accidental Death:...
coverage - Kidnap and ransom insuranceKidnap and ransom insuranceKidnap and ransom insurance or K&R insurance is designed to protect individuals and corporations operating in high-risk areas around the world, such as Mexico, Venezuela, Haiti, and Nigeria, certain other countries in Latin America, as well as some parts of the Russian Federation and Eastern Europe...
- 3rd Party Supplier insolvency (e.g. the hotelHotelA hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms...
or airlineAirlineAn airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
to which you made nonrefundable pre-payments has gone into administration)
Common exclusions
- Pre-existing medical conditions
- War or terrorism - but some plans may cover this risk, and some do cover for acts of terrorism
- Injury or illness caused by alcohol or drug use
Usually, the insurers cover pregnancy related expenses, if the travel occurs within the first trimester. After that, insurance coverage varies from insurer to insurer.
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.
See also
- Travel Insurance Companies (USA)
- Insurance Premium Tax (UK)Insurance Premium Tax (UK)Insurance premium tax is a tax on general insurance premiums within the United Kingdom.-Law:The main law relating to IPT is in the:* Finance Act 1994, sections 48-74 and Schedules 6A, 7 and 7A, as amended by the Finance Acts 1997, 1998 and 1999...
- The World's Most Dangerous PlacesThe World's Most Dangerous PlacesRobert Young Pelton's The World's Most Dangerous Places is a frequently updated handbook written by Pelton and an unusual crew of contributors. Although it is not meant to be used as an actual travel guide, like Frommer's, the book's advice to staying alive and the facts about the world's most...
(a frequently updated handbook)
External links
- Travel insurance advice UK from the British Foreign & Commonwealth Office
- Travel Insurance Advice USA from the U.S. Department of State