TIPS FOR CHOOSING A POLICY
Choosing a right policy from a right insurer can make all the difference and here are few tips for buying a travel insurance policy:

1. Mode of claim settlement
Choose the insurance company, which settles mostly through direct payment to the hospitals rather than reimbursing the expenses. None of the Indian Insurance companies offer this facility. This can be a serious problem if one does not have the money to pay the advance before taking the treatment.

One also needs to check, with the insurer, whether the claims will be settled abroad in US dollars or settlement will be on reimbursement basis only in Indian rupees. Some insurance companies settle claims in Indian rupees.

2. Check for the international help line
Check if there is any help line/helpdesk, which can be contacted in case of an emergency. Only PSU general insurance companies are having an international toll free help line. But for most of the private insurers you have to call their helpdesk in India.

3. Can the policy be extended while you are abroad?
Check before hand if your policy can be extended further since you may have to stay abroad for longer than planned for. Travel insurance policies offered by most of the companies cannot be extended once the trip has started. Except OMP none of the policies can be extended after the trip has started.

4. Check whether you are covered while you are travelling/driving a vehicle
Most of the companies do not cover you while you are driving/travelling a/on a two wheeler. Only OMP provides you this cover, but the policy condition stipulates that you should be holding a valid driving license to drive in that foreign country and you should be wearing a helmet. So if you are likely to use a two wheeler you better opt for an OMP and make sure you carry an international driving license.

Most of the private insurers do not cover accidents arising while traveling on any motorised transport. One needs to read the fine print to realise this.

5. Deductibles
Deductible is the amount of the loss which the insured has to bear in each and every claim.Insurance company shall be liable only when the amount of loss exceeds the 'deductible'. Eg: A policy with Rs.100 deductible would mean that policyholder has to bear Rs.100 of each and every claim under the policy. You may choose a higher deductible to lower your premium. But it is not advisable to opt for a higher deductible to reduce the premium outgo.

One should make an informed decision by giving due consideration to policy coverage, service offered by insurer and such other aspects discussed above rather than basing the decision solely on the premium outgo. And one should know that no decision is an informed decision unless that decision is based on the correct and complete understanding of the policy wordings.

U.S. BASED INSURANCE COMPANIES

For persons traveling to U.S.A. or Canada, it may be worth their while to surf the net and buy a suitable policy online. The main advantage is that one can show the policy to the Hospital administration and take the treatment without paying any advance. Normally, the hospital calls the insurance company using a toll free number of the company and gets prior approval.

Now lets look at foreign insurers who are providing online travel insurance covers for people outside their home country Eg: Specialty Risk International. Benefits offered by these companies are more or less similar to those offered by Indian insurers. However these companies have certain advantages such as:

1. These polices can be extended up to a maximum of 3 years.

2. One can opt for a hazardous sports cover by paying additional premium.
   

3. Travelling in domestic airlines of respective countries is covered, whereas in most of the polices offered by Indian insurance companies travelling in domestic airlines is not covered.
   

4. Few policies offer benefits even in case of trip cancellation or trip interruption. (Trip cancellation/interruption benefit: One will be eligible for benefits equal to the amount purchased for Published Penalties and unused non refundable prepaid expenses for Travel Arrangements whenever one is prevented from taking a Trip for any of the reasons covered under the policy such as sickness, Bankruptcy or Default of an airline, Strike that causes complete cessation of services of the Common Carrier etc.)

Further information on these policies can be obtained on the following site. The site also offers the convenience of purchasing online using a credit card.

http://www.g1g.com/affiliates/bima/

Online purchase of travel insurance policy can be made on several U.S. based websites, including the above-mentioned U.S. based site.