Mar/100
Due Diligence Before Purchasing Travel Insurance
Author: Daniel Millions
Source: articlerich.com
Travel insurance is important for all those who are planning to travel. For people who make trips abroad, travel insurance is essential because it saves them from all the unexpected money they spent either because they lost their baggage or because they suffered an accident in a foreign country.
The frustration of losing baggage or suffering accident in a foreign country can be huge but it can be overcome if the travel insurance company accepts the claim and pays back the money for the loss incurred by the customer. Although the benefits of buying travel insurance are many, yet people need to follow some useful tips to make their journey worthwhile, safe and secure.
Holiday insurance is offered by different companies in the market. In fact, the holiday insurance services are also offered by agencies that do not directly deal with insurance such as banks and credit card companies.
The banks and credit card companies are actually resellers who have a tie-up with the travel insurance companies and they get a commission for selling the holiday insurance packages. But when customers purchase travel insurance packages from these reseller, they actually end up paying them more because the commission keeps adding up on the original prices of the insurance products.
Therefore, it is advised that the customers purchase holiday insurance packages directly from the insurance company rather than from the reseller. Besides, there is another advantage of buying insurance directly from the company rather than from the reseller. The advantage is that the insurance company provides all the information needed for the customer including the any expected problems and other terms and conditions mentioned in the fine print.
But the reseller who himself has poor information about these terms and conditions in the fine print is unable to provide complete details to the customer. Problems become evident when the customer returns back from the journey and files a claim and when that claim is not processed by the insurance company, then the actual details of the insurance policy are revealed.
It is also advisable for all travelers to check the fine print in the holiday insurance policy documents before signing them off whether policy is offered by the reseller or directly by the insurance companies.
Sometimes, there may be difference in certain claims like the excesses where the customers also need to contribute over the losses they make but these excesses are limited to just one item, but an accident can involve damage to the camera and to the laptop as well as some injury to the body. In such cases, the insurance company can expect the customer to pay amounts under the excesses for each of the item including the injury.
These details are not known to the customer until the last moment when he goes about to make the claim. Some of these tips should be kept in mind right from the day one starts planning a holiday and getting the holiday insurance package from an insurance company or from a reseller.
