When planning an international trip, it is imperative to first buy the right travel insurance policy to secure your trip and financially protect you from dozens of medical and non-medical travel-related risks. Policyholders receive compensation or reimbursement for expenses incurred due to certain covered risks.
These coverages are mentioned in the policy document and play a significant role in ensuring financial protection. However, certain risks are not covered, and the insurer will not cover specific exclusions.
This is why it is essential to look for a travel insurance policy with relevant coverages for common and uncommon risks, including something which is commonly overlooked by quite common: the delay or loss of checked-in baggage.
This travel insurance covers and compensates you for lost, stolen, or delayed luggage during your journey. Here’s why it’s a must-have:
What is baggage coverage under travel insurance?
Baggage coverage is a part of travel insurance that financially protects travellers by offering compensation or reimbursement for expenses incurred due to delay or loss of checked-in baggage.
For example, if a traveller is visiting Thailand with checked-in baggage, and for some reason, the baggage is transferred to a different country, and there is over 12 hours of delay in getting the baggage, the insurer will provide compensation for this delay based on the policy document. Similarly, the policyholder can claim settlement per the policy document if the baggage is permanently lost or stolen.
Please note that this coverage is only valid for checked-in baggage. You should still be cautious about your carry-on or hand baggage and avoid losing it.
What are the types of baggage-related risks covered under a travel insurance policy?
Depending on the specific insurer the policy is from, there are typically three types of baggage-related coverages under insurance:
-
Delayed baggage: If your luggage is delayed beyond a particular pre-specified number of hours (typically 12-24), you’ll be reimbursed for essential items you purchase while waiting for your bags. This compensation is done up to a particular amount mentioned in the policy document.
-
Lost or stolen baggage: If your luggage is permanently lost or stolen, your travel insurance cover will cover the cost of replacing essential belongings after deducting any payout made by the airline.
-
Financial emergency cash: If you lose your travel funds, including cash, due to theft, you can avail coverage for expenses incurred until you are able to secure further funds.
Why is baggage coverage essential?
Whether it is the timing or the realisation of lost or delayed baggage, it can cause significant loss and a negative travel experience, especially when travelling internationally or with essentials such as medicines, travel funds, and clothes.
Having a travel insurance policy that covers these issues is necessary to ensure compensation or reimbursement for these possible outcomes, which are some common medical and non-medical risks.
What else does a travel insurance policy cover?
In addition to baggage-related risks, travel insurance also covers dozens of medical and non-medical risks, ranging from trip cancellation to missed connection, personal liability to personal accident, medical emergency, and repatriation of mortal remains. Thus, it is an essential tool to ensure a safe and secure trip to your travel destination.
By comparing different insurance policies, you can assess and choose the right policy for your specific needs. For example, Niva Bupa is a leading travel insurance provider and offers coverage for up to $500,000 at competitive prices. It uses a straightforward and intuitive portal, enabling you to purchase the policy within minutes from anywhere at any time without any pre-policy checkup.
Conclusion
When buying an insurance policy, choosing one with the necessary coverages is essential based on several factors, including common risks and risks mentioned in travelogues, travel advisories, etc., as they help understand the risks that need to be considered and precautions taken. So, choosing the right travel insurance policy with baggage delay and loss coverage can help mitigate the financial implications of losing your checked-in baggage or having it stolen.