Travelling abroad on a holiday is meant to be relaxing or recreational, but the best holiday can be ruined in case of a medical or financial emergency that you didn’t account for. So it’s best to travel with complete peace of mind, knowing that you are financially covered for any emergency that may arise on your trip. MoneyCamel team stresses on the importance of travel insurance and why you need one before jet-setting off to your vacation destination.
Why does one need travel insurance?
The following are cases where you need travel insurance the most when you’re travelling abroad:
- In case of medical emergencies since out-of-pocket medical expenses without health insurance can be huge.
- In case of lost or stolen baggage and personal belongings.
- In case you are held responsible for damage of property or injury to another person.
- In case of trip cancellation due to unforeseen circumstances since last-minute cancellation charges for hotels and flights mean Zero refund.
What does a standard travel insurance cover?
A regular travel insurance policy will cover you for the following:
- Medical emergencies & evacuations
- Personal Liability – damage to property or injury to another individual
- Loss of baggage and baggage delay
- Trip cancellation costs
- 24-hour assistance for a variety of services
What a standard travel insurance will not cover?
There are some common exclusions in most travel insurance policies that you are not covered for:
- Participating in high-risk adventure sports like sky-diving, bungee jumping, paragliding etc.
- Treatment costs for pre-existing medical conditions.
- Losses due to acts of war, terrorism or civil unrest.
- Losses due to natural calamities like earthquakes or epidemics.
- Trip cancellation due to reasons not covered or specifically mentioned in the policy.
You can take Individual travel insurance or Family travel insurance to cover your family members. Travel insurance can also be taken for a single trip as well as for multiple trips spread over a year. The latter, an Annual Multi-trip travel insurance, is better value for money for frequent travelers. There are separate plans available specifically for travel to Schengen countries in Europe.
Eg: Travel Insurance premium for a family of 4 to anywhere in Schengen for 15 days, costs only AED 480 and covers all kind of situations like refund fare of economy class air ticket, delayed baggage, delayed departure, personal belongings, baggage loss etc. A standard policy for the family that covers basic medical expenses costs only AED 220.
Today, most bank accounts and credit cards offer free travel insurance but these are usually not very comprehensive in coverage and you will need a separate travel insurance policy to give you the additional cover you need in case of emergencies. It is advisable to check with your bank or the credit card company about the travel insurance cover provided so you know what additional things to look for in the travel insurance policy.
It is really easy to get travel insurance, as most companies’ websites offer you an insurance quote online that is generated instantly, making it easier for you to compare the cost with the benefits across a number of providers.
There are a number of international travel insurance providers operating in the UAE like AIG, Zurich, RSA, Alliance, AXA and many other local insurance companies that offer Shariah-compliant Takaful insurance plans like ADNIC, United Insurance Company, Methaq Takaful, Noor Takaful, and Salama.
Many banks also act as intermediaries and collaborate with insurance providers to offer their customers various types of insurance products, travel insurance being one of them. For example, RAKBank offers travel insurance through Oman Insurance Company, HSBC offers Zurich insurance plans and Emirates NBD offers travel insurance through RSA.
It is important to remember that not all travel insurance policies are the same – while some may be plain vanilla policies, others may offer more comprehensive cover. One must definitely go through the fine print of a policy offer document to know about exclusions and cover limitations.
Buying travel insurance is easy-you can get a quote, compare benefits between different variants and buy a policy online.