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What are Deductibles in Travel Insurance?

By Finserv MARKETS - Feb 4,2019
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What are deductibles in travel insurance?

There is a lot of planning that goes into making any trip a complete success. No matter how well we plan our trip, there are still things which can go wrong. For times like these, there is travel insurance; a plan that takes care of contingencies that might arise during our trip. However, there are certain portions apart from the travel insurance coverage that a policyholder needs to bear. These are known as deductibles and are a part of the sum assured.

A policyholder agrees to bear minimum costs as deductibles, which can be fixed or voluntary. The fixed deductibles are the compulsory expenses that a policyholder needs to bear. On the other hand, voluntary deductibles allow the policyholder to choose the expenses over and above the fixed deductibles. If the amount of voluntary deductibles is higher, the portion of the sum assured reduces, which means the liability of the policyholder becomes higher. It must also be noted that voluntary deductibles reduce the premium amount. You can check online travel insurance plans for more details.

The list of Compulsory deductibles is mentioned in the policy document. Some of the deductibles in travel insurance plans are:

  • Medical expense coverage

Whenever there is hospitalization, you have to bear a basic minimum amount out of the expenses. Any amount exceeding this will be borne by the insurance provider. Even if the medical treatment is during an overseas trip, you will have to bear the minimum expenses and they cannot be claimed.

In case of an urgent dental treatment, you may have to pay for the expenses yourself to get treated immediately. You can later make a claim on your travel insurance policy for such emergency treatments.

  • Loss of passport

The theft or loss of a passport is every traveler’s nightmare. Depending upon the type and the terms of the policy and the insurance provider, the deductible on the loss is fixed.

  • Baggage and flight delay

The deductible in both these cases is based on the duration. Your cost of baggage delay is applicable after the first 12 hours and the insurance provider can reimburse this. In case of flight delay, you are reimbursed after the lapse of first 12 hours of the delay, which is considered as standard. These terms and conditions may vary from policy to policy. You are advised to read your travel insurance plan carefully before making a claim.

  • Protection against hijack

Many travel insurance providers, provide coverage in case of hijacking incident in an airplane or a ship. The insurance provider will reimburse the cost after 12 hours of the hijacking incident. This provision may be different from policy to policy. You should check the terms and conditions of your travel insurance plan to know in exactly which situations you can make a claim.

  • Home burglary during travel

If there is a home burglary that has taken place, usually there will be a deductible involved. A minimum amount of loss as mentioned in the policy is not covered as losses, this is the deductible amount. Any amount of loss over and above that can be claimed from the insurance provider.

Now that you know what are the types of deductibles in a travel plan, read your policy wordings carefully when you purchase a travel insurance plan.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522