Study abroad: How to select a suitable student travel insurance policy

ByDev Karvat

Education counselors equip you with a lot of information about the preparations needed when heading for education abroad. One of these is a student travel policy. While many recognize the importance of having such a policy, there is a tendency to treat this as just another piece of essential paperwork. However, this can result in ending up with a policy that does not meet your specific requirements. To ensure that you are appropriately covered, you must invest some time and effort in selecting the policy.

Some universities have a norm that the policy should be purchased through them alone. In this case, there is no option. Some universities aver that the policy must be purchased only from an insurer belonging to the host country. Those that do not have such a requirement usually lay down guidelines which the policy must meet, wherever it is purchased from. Many simply prefer to go with whatever policy the university offers, rather than attempting to understand the guidelines. However, while this option may appear convenient, it is usually the hardest on the pocket and also results in a plan that is not necessarily suited to the student’s needs. Moreover, it is generally not mandatory to buy an Insurance cover from the university.

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The premium cost for plans offered by Indian companies is typically one-third of that levied by foreign carriers. Thus, for the same sum assured and benefits, one could end up shelling out 3 times higher premiums. Needless to say, if the university rules permit, it is prudent to do one’s research and select a suitable plan from a domestic insurer. Students can download a waiver form and after getting a product compliance confirmation from their Agent/ Indian Insurance company, it can also be sent to the University for a Waiver.

What are the factors one must look into while choosing a plan? Firstly, keep in mind that while the university may permit you to buy a policy from your own country, they may have certain stipulations pertaining to the sum assured type of cover etc. Make sure you are aware of these so you do not end up with a redundant policy. The stipulations may also vary from country to country.

For example, students travelling to Australia will need to buy an OSHC cover aka Overseas Student Health Cover from the university directly. However, it will cover him/her only up to 80 percent of the cost in private hospitals and the balance 20 percent will have to borne by the student. On the other hand, students travelling to the UK get a National Health Service cover from the University, however, it does not cover them at any private hospitals.

A comparative assessment of the benefits of the various plans available must follow. Usually, university plans provide only medical cover and do not cover inter-city or local travelling as well as travelling to nearby countries on a holiday.

However, domestic policies offer protection against a host of eventualities and you can choose which elements you would like to include in your plan. You can opt for an array of covers such as loss of baggage/passport; sponsor protection (cover provided if sponsor cannot continue funding the education due to death or disability); personal liability (cover provided if a student injures a person or damages property); study interruption (reimbursement of fees in case student is unable to continue education); Family re-union or compassionate visit (reimbursement of travel and accommodation cost for parents in case of medical emergency) etc.

An important point to be considered is the hospital network of the insurer from whom the plan is being taken. Make sure that the network includes hospitals close to where your campus is situated. Take into consideration the past claim settlement record of the insurer as this is what would ultimately determine your experience with the insurer should the need to make a claim arise.

Ensure you have read the policy terms and conditions thoroughly so you are not in for a rude shock later. For instance, make sure you are aware of the deductible amount. This refers to the initial sum that will have to be footed by the policyholder himself before the insurer settles the claim. Usually, deductible amount is higher in case of foreign insurers. It can be 5 times higher than in case of domestic insurers.

Most importantly, in order to get a 100 percent protection, you must always carry a Travel Insurance policy before you leave the country.

Guest article written by Dev Karvat, Managing Director, TrawellTag