Business Other News 10 Feb 2017 When domestic travel ...

When domestic travel insurance may not be a worthy investment

DECCAN CHRONICLE
Published Feb 10, 2017, 4:45 pm IST
Updated Dec 1, 2018, 3:44 pm IST
For domestic travel, buying travel insurance can be a non-profit deal, especially when it is supposed to cover small and manageable losses.
Since you might already have a health insurance plan and baggage loss is something that the airline is bound to cover for, it altogether puts a question mark over the utility of buying travel insurance for domestic travel.
 Since you might already have a health insurance plan and baggage loss is something that the airline is bound to cover for, it altogether puts a question mark over the utility of buying travel insurance for domestic travel.

Buying a travel insurance policy is a common practice for any traveller going abroad. To get a visa for travelling to certain destinations in the world, having travel insurance is a mandate. But travel insurance is not limited to international travels. Insurance companies have policies that cover you for domestic travel as well. But is it important to cover yourself for domestic trips? This topic has been a subject of debate.

For domestic travel, buying travel insurance can be a non-profit deal, especially when it is supposed to cover small and manageable losses. Some believe that any travel is a travel and needs to be insured well, as all travel plans come with certain type of risk and uncertainties. However, everyone would agree here that the key benefit that domestic travel insurance provides is baggage loss apart from medical emergencies in case of accidents. Since you might already have a health insurance plan and baggage loss is something that the airline is bound to cover for, it altogether puts a question mark over the utility of buying travel insurance for domestic travel.

 

Here are a few scenarios where you can avoid buying a travel cover for domestic trip.

 The Cost Of A Domestic Trip Is Low

Airlines with promotions and offers coming up every now and then, makes the travel cheap and thus encouraging  passengers to opt for flights as their travel mode (domestic travel ratio is high on other modes of travel like rail, bus, etc.). With highly competitive rates, air travel cost becomes very less  and thus eliminating one of the major risk, i.e. financial risk covered by the travel insurance.

Already Existing Insurance Policies

 

A person usually in his or her lifetime opts for various kinds of policies ranging from basic life insurance, auto insurance and health insurance. Having a good understanding of the existing policies you already pay for, might help you to judge your need for travel insurance better. Many of the risks might already be covered in your existing policies, as such opting for a policy for domestic travel will just be an add-on of cost with little benefits.

Low Risk Factor

Travelling additional miles attaches more risk of both financial loss as well more uncertainties related to travel and medical expenses. Domestic travel within national boundaries on direct flights is usually not a long-term planned travel that involves uncertainties of dates and cancellation of the plan. This also eliminates long distance hazards automatically.

 

If Lost Baggage Is Your Only Nightmare

Often the only risk a passenger wants to avoid is the loss of their belongings. Though such an event is uncertain, it usually forces a person to insure himself or herself. But with change in policies and regulations, most of the airlines cover or compensate any mishap or loss of the baggage. This makes it easier for the traveller to levy off the burden and travel tension-free.

To sum it up, ensuring a safe travel is a pre-requisite for any traveller, whether travelling internationally or domestically. With keeping each individual’s personal need in mind, a policy is not mandatory for a well planned and safe domestic trip. But with a better understanding of travel and its regulations, you can easily make a worthy investment when it comes to domestic travel insurance policy. At the end of the day, travelling is a must and best when it’s safe!

 

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—by Dhruv Sarin- Head of Health and Travel Insurance — Policybazaar.com

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