It is very important to have a personal liability coverage in your comprehensive travel plan. Here's why.
When travelling abroad, you might be unfamiliar with the law of the land and also may end up in a situation which involves professional intervention. For instance, you may be a part of an accident where you are inadvertently responsible for both bodily and property damage to the other person. Such a situation can escalate extremely quickly and without having the correct travel insurance in place, you may find yourself significantly deep in debt. While you may think you are covered by your comprehensive travel insurance, but so is not the case.
For any such incident, it is very important to have a personal liability coverage in your comprehensive travel plan. While some travel policies may cover personal liability under them, but it is still advised to be certain of it while buying your insurance plan as you do not want to be in a problem when on foreign soil.
What is Personal Liability Insurance?
Liability insurance intends to offer protection against third party damages. In simpler words, the payment would not be made to the insured; rather it will be made to the party which has incurred loss or damage due to unintentional damage caused by the insured. However, it is important to note that personal liability benefits only cover accidental damages, but do not cover intentional damage to anyone.
When a claim is made, the insurance carrier has the right to defend the insured, this is made easier with a personal liability cover which helps in covering up for the cost of legal proceedings as well, though the cost is only bearded by some of the insurers.
How does it Work Under Travel Insurance?
With a small incremental cost, an insurance policy with personal liability cover will offer you coverage should you unintentionally injure someone or damage someone else’s property. When you are covered for personal liability, the insurance company will pay, up to the maximum amount specified, for loss, injury or damage that you or the insured people cause during your travel.
If any third party has made a claim against you, you must first and foremost inform your insurance company of the same. You must not admit liability for or settle for a claim prior to notifying your insurers. You must allow your insurers to take over and conduct the formal proceedings in your name. You must also fully corporate and assist as necessary.
No claim is settled without the consent of the insured. However, in case the insured person refuses to consent to any settlement and rather chooses to contest or continue any legal proceedings, in such a case the liability amount of the insurer will not exceed the amount for which the claim could have been settled.
Any or all the amount that is shelled out for the payment of any claims or defense costs will reduce the ‘Limit of Indemnity’.
Why is it Beneficial?
While not all policies would include the personal liability cover, a comprehensive cover gives great benefits for medical expenses, stolen luggage and cancellations. Travel insurance policies that already include a personal liability cover, make travel insurance a smart choice as it protects you from a greater expenditure in the long run.
Exclusions to Personal Liability under Travel Insurance
Exclusion within personal liability state that a claim would not be compensated for/ if –
# A claim by one insured person against another or against an insured person by relation, a travelling companion or work colleague
# There is a transmission of disease
# There are expenses arising out of or attributable to alcohol or drug use/misuse/abuse
# Deliberate, willful, malicious or unlawful act or the misuse of weapons, including firearms
# Animals or pets belong to you, or in your care, custody or control
Some Popular Options to Look Out For
Many insurers include personal liability insurance in their comprehensive travel plan and it is best to compare the policies online to get maximum benefits at minimum premium. Religare is a popular name that offers personal liability cover of up to 50% of the total coverage limit. Also, Reliance, Bharti AXA, Digit, Apollo, Tata Aig, SBI, Bajaj Allianz and HDFC are some of the prominent names offering reliable personal reliability coverage.
Personal liability under travel insurance is an important cover as you might have secured yourself against any medical costs that you may incur in case of an accident, but you must also be wary and considerate about how you are liable to the third party in case you cause damage to them physically or to their property.
(By Tarun Mathur, Chief Business Officer-General Insurance, Policyabazaar.com)