Do You Need A Travel Insurance?

A quick studies on travel insurance offered in the market, you would notice that the average spending on travel insurance costing around 2% - 15% of your total out-of-country spending. Depends on the nature of your trip, the percentage can be less, if you are on a luxurious tour to Paris; or it can be more, if you are backpacking in Cambodia; or you do not bother at all, because you think your company already pay for that as part of your business trip? [caption id="attachment_808" align="aligncenter" width="464" caption="Risk spoiling your vacation mood without a travel insurance?"][/caption] If you are a frequent traveler, you know that travel insurance is essential andĀ not something you will sort out at the last minute. Unless you have already been buying from this travel insurance provider all the time (or long term), and you already familiar with the content of the policy, including all the small print. If not, let me share with you these key terms that would normally appear (not limit to) in a travel insurance policy, which is also the key consideration to the subject of this post.
Lost of valuables: The amount you will be getting back in case you lose your money or personal belongings. Usually, there will be a limit on your claim and probably for any one item. A police report is require to file a claim. My personal experience was my camera got stolen on a metro in Rome. I made a police report there, and when I got back, I send in the claim together with the police report and the original receipt of where I bought my camera (luckily I still keep it). Within a month, I got a cheque from my insurance company, and to my surprise they pay me the full amount of my camera! As far as I know, some insurance will only pay you back half the amount of your lost or stolen items, but I think I got lucky.
Personal Liability: Anything that have to do with legal and lawsuit, in case you are sued for accidental injury caused to someone or damage to someone's property during the trip. You will be insured up to certain amount. Example if you accidentally spilled hot coffee on somebody's Gucci bag, and he/she wanted to bring this to a court case. Why not? Everything could happen.
Medical Expenditure: The money use to pay for medical emergency in overseas. This includes necessary expenses for ambulance and hospital; and could prove very expensive. Either you (as a traveler) need to arrange for ready cash; else credit card will do, but might not be working in every part of the world. In short, this is to ensure minimal medical expenditure for you (as a policyholder). Example if you accidentally being knocked down by a car coming from the opposite direction?
Cancellation Costs: Understand what kind of cancellation is cover. It can be before you depart, example if your tour agent ran away with your paid holiday package? or during your trip, example if your flight has been cancelled and you are left stranded at the airport, you probably need a hotel and new tickets, etc.
Repatriation Costs: Expenses incurred in bringing you and your belongings back home. I will not give example for this one as to let your imagination flows. Think about the worst case scenario.
Exclusion: One of the important point, this clauseĀ eliminates coverage for certain acts, property, types of damage or even locations. Example if you involved in dangerous sports?
Policy Excess: This is the amount you have to pay for each claim you made. Most travel insurance policy have this and normally they will deduct the amount of the policy excess from the settlement of your claim.
The Underwriter: Look for international investment body or well-known, established institution. They are the one (behind the scene) who will pay you eventually.
Travel Assistance: This is the only thing that means important to you during an emergency, the 24 hours hotline contact number! You would want to test calling the number first? :)
These are the more important points to consider when you want to purchase a travel insurance. At least from my experience, after I sorted out my travel insurance, I get to enjoy the "Peace of Mind" while I'm travelling.