Its sizzling hot in most part of the country, with the mercury touching record highs in some places. Summer vacations of schools have started and it time to pack your bags for the long vacation to cooler climes with the family. Many among you would choose an overseas destination to escape the heat for a few days.
As you leave for the airport, your checklist much have included the ticket, the visa, the currency that you need to meet expenses and essentials that your baggage must hold. But did the checklist include a travel insurance for you and your family?
If you are careful and smart with your personal finance, you would have purchased a travel cover that could be invoked in case of a medical emergency. However, many do not care to buy travel insurance or are forgetful keeping them open to possibilities of unseen medical risks making a huge dent on their finance while overseas. And even if you have purchased travel insurance, how much s the cover? Is it adequate keeping the medical costs in the country to which you are travelling?
So, what is an adequate cover while travelling? FeMoney talked to leading insurance experts, some of whom offer travel insurance themselves to give you and idea on how much cover should be adequate. However, we would put the rider that there may be occasions that my result in your medical expenses crossing the maximum cover suggested.
Yashish Dahiya, CEO & Co-founder, Policybazaar.com:
The amount of coverage varies as per the geography, says Dahiya. “ It is important for you to take into consideration the duration of your trip and your age while deciding on the amount of coverage,” he says.
Yashish Dahiya suggests:
-Asia: $25,000 is good
-Europe: It should be around €50,000
-United States: The cover should about $2,50,000
-For all other geographies: $50,000-1,00,000
Antony Jacob, Chief Executive Officer, Apollo Munich Health Insurance:
“The kind of policy one needs and the adjoining benefits one would like to reap from travel insurance may vary from consumer-to-consumer depending upon the travel duration, destination and the purpose of the trip. When taking a decision to select an adequate travel insurance coverage you must take into account the country or region you are visiting,”Jacob suggests.
He points out medical costs in North America will significantly vary from other part of the world like South East Asia.
Antony Jacob suggests:
-Western Europe and United States: the cover should be $100,000 and above
-South East Asia, such as Thailand, Malaysia: The cover should range from $25,000-$50,000
-Australia: The required cover would range from $50,000-1,00,000.
Mukesh Kumar, Executive Director, HDFC ERGO General Insurance Company
“The coverage should be enough to take care of eventualities in a foreign land. Otherwise the policy becomes futile if one has to pay from his/her own pocket. Medical costs outside the country are exuberant and cost a fortune. And to top it up, you do not have the social support there. One has to ensure that the coverage takes care of all such issues,” Kumar says.