Travelling abroad? Insure now!

Asia has become a hot holiday destination for Indian travellers. Not only is it close by, but air fares to the Asia-Pacific belt have also dropped dramatically with the advent of low-cost, no frill airlines, and domestic airlines being allowed to fly overseas.

Moreover, Japan, Singapore, Thailand, Malaysia, Hong Kong are seen as hot shopping destinations for the avid Indian shopper.

While travel to Asia has increased dramatically, insurance companies have not seen a commensurate growth in demand for travel insurance plans or overseas mediclaim policies.

Much of this is because visas to Asian countries do not call for any travel covers. Many countries, especially the United States and Canada as well as parts of Europe, do not grant visas without a travel cover in place.

Bajaj Allianz General Insurance Company last week launched two low cost travel plans for travellers to Asian countries -- Travel Asia Flair and Travel Asia Supreme.

Travellers looking at a four-day shopping holiday to Bangkok could avail of Travel Asia Flair where the premium is as low as Rs 250 a day. Compare this to the Rs 400 charged for cover for trips to places, excluding the US and Canada.

If one is flying to the US or Canada, the per day cost of travel cover rises almost three-fold to Rs 620. The newly launched, low-cost travel plans come with coverage for in-patient and out-patient hospitalisation, evacuation and repatriation. The total travel coverage is up to a sum of $15,000.

For the 'Travel Asia Supreme', where the premium varies between Rs 325 and Rs 650 for a 1-4 day trip, the coverage increases to a sum assured of $25,000.

These plans also cover personal accident, loss of baggage, delay of checked-in baggage, loss of passport, personal liability and hijacks.

The premiums quoted are for travellers who are under 40 years of age. The period of the coverage can be selected from various slabs such as 1-4 days, 5-7 days, 8-14 days, and so forth. The period of travel can be extended to a maximum of 30 days only.

These packages are valid for all Asian countries, except Japan. Naturally so, considering that Japan features among the most expensive countries in the world!

Prior to the privatisation of the insurance industry, the four state-owned general insurance companies offered overseas mediclaim policies.

Today, with eight new entrants offering a plethora of insurance products, competition has forced the players to expand coverage and lower pricing of non-tariff products.

Today, Tata AIG's Travel Guard, Bajaj Allianz's worldwide plan Travel Companion and Royal Sundaram's Travel Shield are some of the overseas mediclaim products competing in the market place.

Though most of the plans offer similar cover, new insurance players have started offering greater benefits. For instance, IFFCO Tokio started hospital daily allowance and hijacked distress allowance and financial emergency allowance.

So having spent Rs 14,000 for a round-trip to Singapore, and another Rs 100,000 on hotel room and shopping, what's Rs 1,000 for a 4-day tension-free holiday?

The checklist

Do I need to go for a check-up before seeking cover?
Most plans are issued across the counter - some players even offer them online. Travellers simply need to respond to a few questions, and the coverage starts immediately after the approval. Of course, long-term covers might call for medical history.
Do travel risk plans cover baggage loss and cancellation?
Most plans include baggage loss, trip cancellation as well as emergency evacuation. Incidentally, one would have to specify and buy additional cover for trip cancellation.
Are doctors' and hospital bills directly paid, or are individuals reimbursed later?
Most bills are paid by the insurance companies directly as per the benefits covered under the plans. However, there are deductibles the insured party needs to pay.
What's the international helpline?
Most insurers have an international helpdesk. While public sector insurers have an international toll-free helpline, some Indian private players require you to call their helpline in India.
Am I covered while travelling or driving?
Most insurance companies do not cover travellers on a two-wheeler. In the case of public sector insurance companies, they grant this cover provided the individual holds a valid driving licence in the foreign land and, more importantly, is wearing a helmet. Many insurers do not cover accidents on motorised transport. It is best to always read the fine print.