It is common for people to make long lists and plan ahead for travelling, but the one essential thing they often miss out on including in their lists is travel insurance. In an interview with Nidhi Sinha, Editor, Outlook Money, Tapan Singhel, managing director and chief executive officer of Bajaj Allianz General Insurance, talks about why it is a must to pack travel insurance when you are travelling abroad or even to a domestic destination, and what you should look for when you are buying such a policy. Here are edited excerpts from the interview:
What are the features that one should look for when buying travel insurance?
Let’s first answer why we should buy a travel insurance policy. When we are planning a holiday, we never think that things may go wrong. But if things do go wrong, where do we go? Do we know the hospitals? Do we know where to get the ambulance? Do we even know what number to call? If we require emergency cash, can we get that? Do we have a friend or a relative there? If something goes wrong, we can actually get into a state of panic if nobody is there. But if you have an insurance policy, you can call them up. They have a network of hospitals, a network of people, and they know where to take you and what advice to give you.
So, there are policies that arrange helicopter evacuation and provide emergency cash if you lose your money. They reimburse the cost of getting a passport if things go wrong, and there are policies for trip delay and trip cancellation.
You have a policy for hospitalisation and for possible liability, too. If, because of you, some third-party liability gets triggered, you have a cover for that too.
And how much does it cost? If your trip expense is Rs 1 lakh, your policy may cost you less than Rs 1,000. So just take it from the perspective that if things go wrong, who will you call? If you have no answer, then get a health policy, or an insurance policy, or a travel policy.
What are the essential features one should include in a travel insurance policy when buying it, especially when they are taking a trip abroad?
I buy everything. I will tell you why. If I knew that this was the only thing that would happen to me, I would only have that cover. But nobody knows about the future, so why restrict the coverage? I buy (everything) so that if things go wrong, I should not be worried. I ensure that I have good health cover because it's expensive abroad. For instance, it’s very expensive in the US and so is the case with most European markets. So, if my cover falls short, it’s going to be very expensive.
That’s why I take full coverage for my health and liability also. I don't know who can sue me or what can go wrong. I would also take a trip delay (cover) because trips do get delayed.
I take every bit of cover, and my view on insurance is never to see it as an expense, but as mental peace. God forbid, I should not require (the cover), and if I am not requiring, somebody else is benefitting from my money. I am happy with that. That's the way I buy insurance.
I see it from the perspective that if my trip costs Rs 1 lakh, what will be my insurance cost? If it costs Rs 1,000, it is 1 per cent of it. Then why should I even bother about it? If I am spending so much to enjoy myself on the holiday, why shouldn’t I spend some money on my mental peace? This is the way I look at it.
Does the health insurance component cover pre-existing diseases too?
There are covers for pre-existing diseases also. Buy that cover. That’s why I say, buy everything. You only need to mention that you want a cover for a pre-existing disease also. In the insurance industry, we will evaluate and give that to you.
These days, seniors are also travelling a lot. Do you have any specific suggestions for them?
As I said, for everybody it’s buying everything. Always think, what are you saving? And, if I don't buy a policy, how much am I saving? If they want to think like that, they will see it (premium) is insignificant. So, buy a policy to have mental peace, to know who to call and who to ask for advice.
You should ask for a comprehensive policy. You can just do an online search or ask your friend and look at good companies, go to their website, or just leave a comment or call the toll-free number; you have enough people giving you the right advice. But ask for the covers, read it once, understand, and see what to do.
Don’t start looking at the policy when the emergency happens. Once you buy, save the toll-free number if there’s one, in your phone as your first emergency number. Also, carry a copy of the policy along with the passport. These are the things that you should be conscious of. Just as you spend months planning for your trip, spend a few minutes planning your insurance policy.
(Transcribed by Versha Jain)
