Travel insurance

Common benefits

Medical

In the event of minor injury or illness overseas, medical benefits offer coverage for visits to general practitioners, medicine, ambulance fees, and limited dentistry benefits. In the event of hospitalisation, most travel insurance policies include emergency assistance services, which can offer guarantees of payment to hospitals for treatment, liaise treating doctors, and organise transfers between hospitals or medical evacuations back to the insured person's country of origin. More comprehensive policies include an emergency companion cover, so that a family member can remain with the insured person while in hospital.

In the event of death overseas, medical benefit sections typically include cover for repatriation of remains to the insured person's country of origin, or a funeral overseas.

Cancellation

Comprehensive travel insurance policies include cover for any cancellation fees or lost deposits relating to cancellation of the insured's person's trip for a range of unforeseen and unexpected circumstances. These include illness or injury, natural disasters and bad weather, strikes and riots, hijacking, and family emergencies. Depending on the policy, it may also include cancellation due to jury service, being made redundant from full-time employment, having annual leave revoked for those in the armed forces or emergency services, and prohibition of or advisory against travel by a government to a particular destination.

Alternative transport and travel expenses

Many policies include benefits for alternative transport, accommodation, and meal expenses if the transport provider is delayed by a certain period, provided any layover times met the criteria in the policy. Policies may also include a benefit to purchase essential items like clothing and toiletries in the event baggage is delayed by an airline.

Luggage

Luggage benefits cover for loss, damage or theft of personal effects during one's journey, including passports and other travel documents. It may also include limited benefits for theft of cash.

Public liability

This covers legal liability as a result of a claim made against the covered party for bodily injuries or damage to property of other persons.

Optional benefits

In addition to their base policies, many providers offer coverage for declared pre-existing conditions (e.g. asthma, diabetes, cancer), higher risk sports and activities (e.g. skiing, trekking at high altitudes, scuba diving), rental car damage, and cruising.

Common exclusions

Insurance companies issuing will often exclude coverage for ongoing known events to new policies, and may announce long-term exclusions for specific events, such as volcanic activity from a currently active volcano. As travel insurance is a risk-based product, many policies will exclude events which may be of a far-reaching and poorly quantified risk, such as pandemics and endemics, acts of war, and terrorism. Some policies exclude travel to certain countries, or parts of countries, where a greater risk is expected. These determinations are often made based on official government travel advice from organisations such as the US State Department or the Australian Department of Foreign Affairs.

Other common exclusions in travel insurance policies include:

• Undeclared pre-existing medical conditions
• Unlicensed operation of a motorcycle
• Travelling for the purpose of receiving medical treatment
• Elective surgery or treatment
• Injury or illness caused by reckless activity such as careless driving, use of alcohol, use of recreational drugs
• Leaving belongings unattended
• Participating in high risk sports and activities (such as scuba diving, extreme sports)
• Travelling against government advice and recommendations

Compulsory travel insurance

Certain countries require foreign visitors have proof of sufficient travel insurance as a condition for granting a visa or of approving visa-free entry. This includes travelers heading to several countries. In some cases, travel insurance is required simply for entry into a country. In other cases, it is required as part of a visa application, such as for a UAE visa or Schengen visa. When travel insurance is mandatory, there is often a set of criteria that the policy must meet. Policy requirements are typically set by governing bodies, such as the European Union, in the case of Schengen visa applications. Cuba, Turkey and Belarus. Thailand and Egypt have announced plans to introduce similar requirements. Tour companies and cruise providers may also require passengers possess a minimum level of travel insurance before the traveller can commence their journey.