Student travel insurance is mandatory for those who wish to study abroad. The policy will help eliminate the financial risks of an unforeseen event that may occur while the student is travelling or staying outside the country. Some of the different circumstances where travel insurance comes to the rescue are:
⚫ Hospitalisation and medical bills
⚫ Loss of luggage while travelling
⚫ Travel delays
⚫ Personal liability: Legal expenses, bodily injury, or property damage are covered
⚫ Loss due to any interruption of studies.
⚫ Sponsor Protection: Covers the balance course fee in case of the death of the sponsor
⚫ Passport Loss: If a student loses a passport, then the travel insurance will provide a temporary passport
■ How much will it cost?
Student travel insurance is a unique combination of health insurance and international travel insurance. It is specially designed for students studying abroad and provides any kind of financial expenses for unforeseen accidents.
Indians between the ages of 16 and 35 years who are pursuing higher studies abroad are eligible for student travel insurance. The duration for the travel insurance ranges from one to three years.
Universities abroad have specific requirements for insurance for their students, which will be mentioned on their university websites. Some universities mention minimum requirements during the admission process. Travel insurance cost varies from country to country.
■ Does the cost vary from country to country? Does currency volatility have any impact on the premium?
The insurance covers every country on the globe but it does differ from country to country. They vary according to the accessibility and availability of the services and the prevailing economic conditions.
For example, medical aid in the US is higher when compared with various other countries, and hence the coverage and premium for a travel insurance policy will be higher when compared to other countries. The cost also varies based on the risks covered by the countries, flight expenditures, and laws and regulations of that nation.
■ What if the student is not an adult? Can the policy be underwritten in such circumstances? How would the conditions vary?
The travel insurance policy will also provide coverage for a child below the age of 18 under a standard travel insurance document. It depends on whether a child is traveling alone or with family or with friends. The travel insurance policy covers:
⚫ Theft, damage, and loss of luggage — this covers personal and baggage items during the trip.
⚫ Medical expenses abroad are too expensive. If a child is injured or falls ill during the trip, the policy covers emergency medical expenses.
⚫ Activities and sports: Some selected activities and sports are covered under the policy.
⚫Repatriation: covers the cost of getting them back home.
⚫ Coronavirus cover: covers medical care or extended stay as a result of Covid-19.
■ Do these policies have a tenure? Is this policy a one-time purchase only during travel?
The travel insurance comes with a specific tenure and also has an auto-renewal option, which can extend the stay with all medical and other coverages.
■ What are the inclusions and exclusions in a travel insurance policy that a student should be aware of?
The inclusions are:
Loss of luggage and other personal belongings: If the student loses their passport/luggage/personal belongings during the foreign trip, the insurance policy will help to recover those finances.
Medical Emergency: The policy provides aid for illness, accidents, injuries, and hospitalisation. Dental treatment expenses are minimised.
Temporary accommodation: In case of any natural calamities and disasters, the policy provides shelter needs and relocates the student.
Judicial matters: Different countries have different laws and regulations. If a student gets into trouble, the policy will compensate for the damages and help in getting bail.
The exclusions are:
If items inside the bag are lost or there is partial damage to the luggage.
Loss due to carelessness or negligence.
Suicide, mental disorders, self-harm, anxiety, drug abuse, alcohol, stress, depression, HIV, and AIDS.
Losses arising due to war or nuclear threats are not covered.
■ Are the loss of a passport and other important documents covered under travel insurance?
In case of loss of passport and other necessary documents, the travel insurance will provide a temporary passport. It will also reimburse the actual expenses for a fresh passport and documents.
The writer is director, Probus Insurance Broker