Before you provide response to this question, you need to ask yourself the following:

1. What could go wrong while you are on your trip?
2. Do you have any medical insurance to cover your emergency medical bills in the event of accident while overseas?
3. If no, will you be in the position to finance all your emergency medical expenses while overseas?
4. What will happen to your family in the event of temporal or permanent disability (death)?

This article will help you know more about travel insurance and its benefits to travelers.

What is travel insurance?

Travel insurance is a type of insurance policy designed to cover travelers against any emergencies as they travel overseas either for business or pleasure. The insurance provides cover for accidental death and permanent disability, medical emergency services, repatriation, hospitalization, hijack and loss of personal baggage. The policy can be extended to cover trip cancellation or interruption at an additional cost. This policy does not provide cover for inland travels either by air or by land. For example, travel insurance cannot be issued to a businessman traveling from Accra to Kumasi by air. The appropriate policy to purchase is personal accident policy. Insurance companies in Ghana are considering to design a specialized travel insurance policy for inland travels. Limit of coverage is almost the same for all insurance companies that underwrite travel insurance policy in Ghana.

When does travel insurance policy begin and end?

Travel insurance policy begin from the date the traveler depart from his or her home country or the start date stated on the policy document. The policy ends on the date the traveler returns to the home country or the end date stated on the travel document. Travel period can be days, weeks or months. Annual travel insurance policy is normally issued for only frequent travelers who will be travelling to different destinations or countries within the year.

What does travel insurance policy cover?

1. Medical expenses cover

Travel insurance policy provides cover for emergency medical treatment to travelers while overseas. It provides cover for both temporal and permanent total disability (death) as a result of an accident. Permanent total disability is permanent total disablement which entirely prevent the traveler from engaging in any kind of occupation. The limit of cover provided by most insurance companies in Ghana is EUR 30,000.00.

• Hospital benefit

This is an extra benefit payable to the traveler when he or she is admitted at the hospital as an in-patient. This benefit is different from the medical expense cover explained above. This is to cover any extra expenses that the traveler might incur as a result of him been hospitalized. Examples of such expenses are cost of food, internet data, credit for phone calls etc. In Ghana, most travel insurance underwriters provide hospital benefit of EUR 82.00 per day up to a limit of EUR 840.00.

• Luggage and personal belongings.

Travel insurance policy also provides cover for loss of luggage or personal belongings of travelers as a result of an accident. Average limit provided by local insurers is usually EUR 64 per person.

• Repatriation after treatment

In the event of an accident or sudden illness or death, the travel insurance policy covers repatriation of the traveler to their home country. This will cover one relative who is required on medical advice to travel with you.  

• Hijack benefit

Hijacking refers to an unlawful seizer or taking control of an aircraft while it is in transit.

Travel insurance policy provides fixed amount of benefit to the travelers which is paid within every 24 hours.

Does travel insurance policy cover all emergencies and illness?

Travel insurance policy like many other general insurance policies have exclusions. Exclusions refers to cases which are not covered under the policy. The most common exclusions applicable to travel insurances are listed below.

Travel insurance policy does not cover:

1. Illness or injuries arising from chronic ailments or those existed prior to the inception of the policy.
2. Mental health diseases.
3. Sexually transmitted diseases.
4. Any cardiac or cardio vascular or vascular or cerebral vascular illness or conditions.
5. Loss that occurs as a result of a bad faith by the traveler for participating in any criminal act.
6. Events arising from terrorism, mutiny or crowd disturbances.
7. Wars, with or without prior declaration, and any conflicts or international interventions using force or duress or military operation of whatever type.
8. Permanent resident and students outside the resident country
9. Pregnancy or child birth related cases

What details do insurance companies require in order to enable them issue travel insurance policy?

Key information needed to underwrite travel insurance policy are:

1. Name, address and phone number of the traveler
2. Passport number
3. Details of Next of Kin including phone number
4. Age or date of birth of the traveler

Age of the traveler is very important in determining insurance premium. The age limit for most insurance companies in Ghana is sixty-five (65) years. Travelers who are above this age are charged over age loading which increases the price they pay for their insurance. It can be purchased for both infant and adult.

• Occupation of the traveler. Occupation is an important rating factor for travel insurance. Insurance companies do not provide cover for travelers who are engaged in any professional sporting activities.
• Travel period. The period of travel requested by the traveler is key in determining insurance premium. Travel period can be days, weeks or months. Most travel insurance underwriters in Ghana do not provide cover for more than three month because of the immigration laws that exist in the various destination countries.
• Countries of destination and destination address

Countries of destination is also a key requirement when patronizing travel insurance. Most insurance companies charge high risk loading for travel to countries such as USA and Canada because the high cost of diagnostic and surgical procedure in those countries. It is also possible to get a worldwide travel insurance cover depending on your travel plans.

• Declaration of any existing medical condition

How do I buy travel insurance policy?

The most common channels available to purchase travel insurance policy are:

1. Buying the policy directly from the insurance company

Travelers can purchase their travel insurance policy by contacting insurance companies directly. This can be done through phone calls, emails or visit to the insurance company’s physical office

• Buying the policy through an insurance broker or agent

Travelers can also purchase travel insurance policy through insurance brokers. Insurance brokers are independent intermediaries who can assist you to purchase your insurance package from any insurance company of your choice. Most corporate organizations use the services of insurance brokers because of the extra professional services they provide. Accredited agents of a particular insurance company can also be used.

• Bank assurance

Travelers can also buy travel insurance policy through their banks.

• Other digital platforms

Some insurance companies have designed digital platforms and mobile applications that enables customers to purchase travel insurance and other insurance policies at the comfort of their homes.

How much does travel insurance cost?

Cost of travel insurance varies from one company to the other depending on the package provided. In Ghana, the average price for one month travel insurance to any country in the world is GHS 396.00. 

How do I make a claim under my travel insurance policy?

The claims process for travel insurance policy is the same for all other general insurance policy. The claim process are claims notification, claims assessment, accepting or denying liability and claim payment. Insurance companies in Ghana have partnership with foreign medical institutions who manages travel insurance claims on its behalf.

The claims process are highlighted below

1. Claims notification:

The first step in making a travel insurance claim is to notify the insurance or the appointed service provider of the accident. This can be done through phone calls, emails and completion of claim form. All necessary medical report and medical bills should be submitted to the insurance company or the service provider. The contact details of the service providers are provided in the policy document.

• Claims assessment: The next stage is for the insurance company or the service provider to assess the cause of the accident to determine if it is covered under the insurance contract.
• Accept / deny liability: The insurance company accept liability if the cause of the accident is covered under the insurance contract. They will deny liability if the cause of the accident is not covered under the policy.
• Make claims payment: After assessing the cause of the accident and accepting liability, insurance companies either pay the claim amount directly to the traveler or to the medical service provider.  

Conclusion

Travelers must consider the risk and its associated cost in the event of emergencies before making a decision to either purchase or not to purchase travel insurance policy.  If you stand in the position of being able to pay for the cost or have an existing medical insurance policy to cover all the risks, then you can forgo travel insurance. On the other hand, if you are not in the position to provide for the cost, then travel insurance is the best option to undertake. It will provide you with peace of mind.