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What factors decide your vacation insurance premium?

​​In our daily life, even while commuting between home and office, we are exposed to risks like accident, pick-pocket, etc. Similarly, when we are flying off in a plane to a foreign destination, we are exposed to even bigger risks like missing your flight, cancellation of your trip, loss of checked-in baggage, passport loss, emergency medical conditions, etc.

While mostly people do not see them falling in such situations, the truth remains that the possibility of falling prey to such crisis like situations can happen to anyone. Thus, in order to protect ourselves from falling in any financial contingency like situation due to such reasons, we need to have a holiday travel insurance​ when on a foreign land.

Vacation insurance is meant to financially assist you at the time of emergency like situations, as mentioned in your travel insurance policy, during your trip. Each vacation insurance policy is different; therefore, it is important that you should know your risks and requirements before buying the policy. The premium amount towards your holiday travel insurance may vary too, depending on factors like your age, number of days you are travelling for, your destination, number of people insured under the policy, etc.

For instance, with respect to destinations, Reliance General Insurance offers vacation insurance for four different types of travel insurance policies – Schengen, World including USA & Canada, World excluding USA & Canada, Asia. Considering A is 30 years old and B is 50. What will be the premiums charged for a 20 day trip of Schengen travel insurance? Take a look:

Individual

Age

Plan

Sum insured 
 (in euro)

Premium (in Rs)

A

30

Standard

50,000

897

B

50

Standard

50,000

982


Yet in another case, same individual travelling to different location might be charged different. Take a look:


Age of Individual

Plan

Destination

Sum insured

Premium 
   (in Rs)

30

Standard

Schengen

50,000 euro

897

30

Standard

Asia

$ 25,000

637

30

Standard

World incl USA & Canada

$ 50,000

637


If you still prefer not buying a holiday travel insurance, then ensure you have sufficient cash to bear the cost towards emergency like situations, while you are on a foreign land.