Travel Insurance: Definition, Types, How to Buy

Travel Insurance: Definition, Types, How to Buy

Travel insurance is certainly different from accident insurance. Because, when you buy this insurance, you will be covered by accident insurance which is generally part of life insurance automatically.

In fact, today there is also travel insurance that provides coverage for COVID-19. However, if you only buy accident insurance, you will not necessarily be directly protected from any risks or unpleasant things that can happen during the trip, such as lost luggage, getting sick, late departure, and so on.

So, what is the meaning of travel insurance? What are the types and how do I claim them?

What Is Travel Insurance?

Travel insurance is insurance that provides protection against all risks that may occur when a person travels, both within the country and abroad. This insurance is preferred for people who often have high mobility, such as traveling out of town to abroad. The ownership of this protection serves to mitigate the financial impact of the risk of loss that may occur during the trip.

This type of insurance is not mandatory, but it should be owned. Especially if you have a hobby of traveling and often travel, you are certainly highly recommended to have it. This insurance is flexible enough that it can be purchased suddenly before traveling. You can also buy this insurance along with the purchase of a plane ticket.

Types of Travel Insurance

Before deciding to buy this insurance, you need to know the following types of travel insurance based on the purpose of the trip, the place of travel, the amount insured, and the duration of the trip.

1. Insurance Based on the Purpose of Travel

Based on the purpose of travel, insurance is divided into 2, namely insurance with vacation purposes and insurance with work purposes. What distinguishes the two types of insurance is the amount of premiums. Generally, insurance for business or employment purposes is offered with a larger amount of premium because it has a greater risk as well.

2. Insurance Based on Place of Travel

Travel insurance can also be distinguished based on the place of travel (including land, sea, air), namely domestic or domestic insurance, and foreign insurance. Domestic insurance is insurance that provides coverage for domestic trips, while overseas insurance provides coverage for mobility when traveling to and abroad.

The amount of premiums for the two types of insurance are of course different. Foreign insurance with the purpose of countries such as Europe, Australia, and the United States certainly has a larger amount of premiums. There are also specialized foreign insurance such as Hajj and Umrah insurance whose value is also greater.

3. Insurance Based on the Sum Insured

Based on the amount insured, travel insurance is divided into individual travel insurance (individual travel insurance) and group (group travel insurance). Of course, insurance premiums for groups will be cheaper and more economical to own than individual insurance.

The more individuals are incurred, the smaller the amount of premiums that must be paid. Usually this type of insurance is used by travel agents or schools and campuses that bring groups on vacation.

4. Insurance Based on Travel Time

The type of travel insurance is further determined based on travel time which is divided into 2 types, namely single trip insurance and all travel insurance in one year or a certain period of time (annual trip insurance).

For those of you who often travel within a year, it is more effective to choose annual insurance so that you do not have to bother buying insurance when you go. Especially for those of you who often travel on business several times a year. While for those of you who rarely travel, you can choose one -time trip period insurance according to need.

Benefits of Having Travel Insurance

How important is it to have insurance when you have to travel, such as traveling or business trips? Is it really worth it between the cost to be incurred for travel insurance with the benefits obtained? Then, what are the benefits of travel insurance and what is the importance of this travel insurance? 

Check out the full explanation of the benefits, come on! That way, you can reconsider how important it is to have this type of insurance.

1. Compensation for Damage or Loss of Baggage

By having a travel policy, you will get compensation in the event of damage or loss of luggage. Baggage problems are very common, even if you may have experienced them. Damaged or lost luggage will certainly ruin your travel moments, won't it? So, make sure you have insurance that can be claimed to cover losses, yes!

2. Compensation for Delay or Cancellation of Travel

A trip that is suddenly delayed or canceled will definitely make you cringe, yes. The plan that has been planned is ruined just like that. The risk of delays or cancellations is inevitable on every trip, and can happen at any time. This is where it is important to have insurance when traveling that will provide compensation if such a situation occurs. Generally, this insurance applies to flights by plane.

3. Treatment Costs Incurred

Sickness can come at any time, including when you're on the go. However, of course no one wants a travel moment to be ruined due to a sudden illness and needing medical care. Especially if the treatment is expensive.

Fortunately, there is this type of insurance that also provides coverage for the cost of treatment when you are sick while traveling. The insurer will cover the cost of medical expenses, so you do not have to spend money. Financially secure, travel is so comfortable!

4. Accident and Death Compensation

By having this insurance, the insurance company will cover the cost of accidents and deaths that occur while you travel. Of course, this is very beneficial for the main breadwinners in the family because the insurer will provide insurance money to the family.

5. Incurring Financial Losses Due to Other Factors

Travel insurance also covers any financial losses due to other factors such as natural disasters, terrorism, and chaos that occur during the trip. All physical, mental, and financial losses will be borne by the insurer.

How to Claim Travel Insurance

To make a claim, the provisions will depend on each insurance company. However, in general, the way is as follows :

  • Log in to the website or application of the selected insurance product
  • Fill out the claim form
  • File a claim online with the evidence
  • You can also make a claim directly by contacting the CS or hotline at each insurance company

This insurance claim process takes approximately 14 business days from the time the claim form is submitted. Also make sure you pay attention to the claim period in a period not too far after you return from your trip. Again, this time period will also vary, depending on the policy in force and issued by each insurance company.

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