Insurance companies offer various terms and coverage, but in general, within the framework of travel insurance for those going abroad, you can purchase programs for medical and transport expenses insurance, baggage insurance, accident insurance, and trip cancellation insurance, which also becomes particularly relevant during the vacation season.
According to Natalia Klimenko, director of the personal insurance department at one company, the policy must specify exclusions. Expenses for treatment of alcoholism, venereal diseases, prosthetics, oncological diseases, as well as preventive treatment are not subject to insurance compensation. In other words, only sudden illness requiring emergency medical care is covered.
Generally, it should be remembered that a person on vacation remains the same person, with the same interests and habits. Especially if, at the same time, they are engaged in their Offshore LLC business, which is particularly popular today. Therefore, the risks that accompany them in everyday life invariably persist during vacation trips. At the same time, as a rule, people lead a more active lifestyle on vacation, try new sports, and as a result, the risks of injury are most relevant and definitely require insurance protection. "It makes sense to take out an accident insurance policy even when traveling in one's home country. But, unfortunately, the vast majority of citizens do not purchase travel insurance without compulsion," laments Alexander Varentsov, deputy general director of an insurance company.
What is the insurance against?
Coverage for medical and medical-transport expenses abroad may, in particular, include emergency medical expenses for outpatient and inpatient treatment, expenses for dental treatment and treatment for exacerbations of chronic diseases that threaten the insured's life. Medical-transport expenses mean payment for transportation to a medical facility for medical reasons, payment for medical evacuation to the permanent place of residence in the country of permanent residence.
In addition to the basic insurance, you can also insure against trip cancellation. The sum insured here is set depending on the cost of the tour. "The amount of insurance compensation is the difference between the actual expenses incurred by the insured and the amount returned by the tour company, but not exceeding the sum insured. Thus, the insurer covers the penalties provided for in the service contract," explains Alexander Shvab, head of the travel insurance department.
Naturally, expenses are reimbursed not for any cancelled trip (changed one's mind, work does not allow), but only if the cancellation occurred for one of the reasons listed in the insurance terms—upon the occurrence of an insured event. This may include death or emergency hospitalization of the insured or their close relative, significant damage to the insured's property, failure to obtain an entry tourist visa, etc.
The policy may also include civil liability insurance towards third parties. According to Alexander Shvab, the object of insurance here is property interests related to the insured's obligation to compensate for damage caused by them during their stay in the insurance territory to the person or property of an individual or legal entity. "It is highly desirable, and in some countries it is even a requirement of the host party, to have such insurance when engaging in skiing and other winter sports. A person rushing down the slope poses an increased danger to others. During court proceedings, if the insured is found guilty, the insurer pays the actual damage caused by them, but not exceeding the sum insured, which can range from $50,000 to $1 million," says Alexander Shvab.
In addition, insurance companies can insure your baggage against damage, theft, or loss.
Validity of the policy
You can take out insurance for a period from one day to the entire trip, with no restrictions here. For active travelers or people who frequently travel on business, there are annual programs. Thus, by taking out an annual policy, you can avoid the need to contact the insurance company every time for a business trip. Moreover, an annual policy will be cheaper than, for example, taking out five or six single-trip policies within a year. "The policy will eliminate multiple visits to the insurer's office and at the same time provide more comprehensive insurance protection for less money," says Larisa Antonova, head of the traveling insurance management department. At the same time, the policy provides full protection, and the number of trips is unlimited.
Multiple dependencies
The cost of the policy is influenced by a fairly large number of factors. Starting from the age of the insured and ending with the country of stay, which, in turn, determines the amount of the sum insured. "In the Schengen area and the EU, the sum insured for citizens of the CIS is set at no less than €30,000 or the equivalent in another currency. In other countries, the sum insured is chosen based on the sufficiency of funds for, say, surgery and subsequent repatriation accompanied by a medical team. And if for nearby and relatively cheap Turkey $15,000 is often enough, then for Thailand at least $25,000 is needed," says Alexander Shvab.
The amount of the insurance premium depends on the period of its validity, the degree of risk to which the client will be exposed during the trip, the cost of medical services in a particular country, and the distance of the vacation destination from the tourist's permanent place of residence. 'Insurance claims occur least often during tourist trips to Europe,' says Alexander Varentsov. 'This is due not only to the fact that the risk of injury is lower when visiting museums than when swimming on the beach, but also to the fact that the national cuisines of European countries are more familiar to us than the cuisine common in Muslim and other countries.'
Extreme sports are an expensive pleasure
Tourists engaged in extreme sports are a separate category for insurers. A policy that provides for increased risks due to sports activities will cost more, as an increasing coefficient is applied to the policyholder. As for the range of services provided, it can be the same as for ordinary travelers. Thus, a policy for active recreation enthusiasts may include, in particular, insurance for medical expenses, including transport services, evacuation, repatriation of the client, as well as accident insurance programs, baggage insurance, or civil liability insurance in case of damage to the health and property of third parties.
'When insuring active recreation enthusiasts, increasing coefficients are applied considering the higher risk and probability of an insured event. As a rule, for skiers the cost of the policy increases by one and a half times compared to a regular trip, or by two times for professional athletes and other active recreation enthusiasts,' says Larisa Antonova.
In addition, an extreme sports athlete should find out in advance about the availability of a specialized medical facility for his profile. For example, in Egypt, popular among divers, there may be no hospital with a hyperbaric chamber near the resort, which is necessary for athletes. If extreme tourism is planned for the vacation, one should also take care of civil liability insurance, since third parties often suffer.
Actions in an emergency
If an accident occurs with the client during the trip, he should call one of the 24-hour service centers, whose phone numbers are indicated in the insurance policy depending on the client's country of departure. 'Upon receiving the request, medical coordinators will arrange the necessary medical assistance, provide detailed recommendations on further actions in the event of an insured event, monitor the quality of medical services provided, and also pay for them directly to the doctor or medical institution that provided the help,' says Larisa Antonova.
According to Alexander Varnetsov, the main mistake is self-medication - except for first aid, one should never delay seeking medical help. He advises that when an insured event occurs, one should not contact the service center, but immediately contact one's insurance company: they will make the most optimal decision. 'By following the algorithm of actions provided by the insurer, the tourist will indeed receive quality and necessary medical care. And when going directly to a doctor, difficulties may arise with obtaining compensation for expenses, since the insurer is focused on treating its clients in certain clinics with which it has contractual relations,' explains Alexander Varnetsov. This is done primarily to guarantee a decent level of medical services and avoid possible complications that may arise from receiving poor-quality services.
Market development
As Natalya Klimenko states, recently there has been growth in this type of insurance, which is explained by a number of objective reasons: the standard of living in the country has risen, tourism and service businesses are actively developing. Sports entertainment, including underwater sports, surfing, various safaris, etc., have become popular in tourist trips. The demand for vacations for parents with children has increased, which raises the risk of child injuries. With the development of business in the country, there has been demand for purchasing policies for the period of business trips, not only within Russia and the CIS countries, but also when traveling abroad.