Travel insurance terminologies explained: A handy guide for smart travellers

Travel insurance terminologies can really make you feel overwhelmed and prevent you from making the right decision about choosing the best travel insurance in Oman. 

Most people, when they come across terms like "repatriation" or "excess" or "trip curtailment", tend to go over their heads. This often results in not properly understanding what is actually covered and what you will pay when you need to claim. 

The best you can do is familiarise yourself with these travel insurance terminologies. 

To make this simpler, we've explained the most essential travel insurance terms in the simplest and easiest way, along with types of coverage, tips for reading policy documents and more.

Table of Contents:

• Essential terms in travel insurance
• Types of coverage
• Example scenarios and how terms apply
• Pro tips for reading your travel policy document
• Conclusion

Essential terms in travel insurance

• Premium: This is what you pay for your travel insurance. You might pay it as a one-time payment or in instalments. Your premium depends on your age, destination, trip duration, and coverage level.
• Excess (or deductible): The excess is the amount you pay out of pocket when you make a claim. For example, if medical treatment costs USD 1,000 and your excess is USD 100, you pay USD 100 and insurance covers USD 900. Higher excess means lower premiums, but you pay more when claiming.
• Coverage limit: This is the maximum amount your insurance pays for each benefit. If your medical coverage limit is USD 100,000 and treatment costs USD 150,000, you only get USD 100,000. Know your limits before travelling.
• Claim: A claim is your formal request to the insurance company to pay for something covered by your policy. You submit proof of the incident and costs, and the insurer reviews and processes it.
• Policy wording: This is the official document explaining exactly what your travel insurance covers and excludes. It's your rulebook. Read it before you travel.
• Trip cancellation: This covers non-refundable trip costs if you need to cancel before departure due to covered reasons like illness or emergency. You get reimbursed for flights, hotels, and tours you prepaid.
• Trip curtailment: This covers your losses if you need to cut your trip short and return home early. It reimburses unused accommodation and travel costs.
• Repatriation: This is the process of bringing you back to your home country for medical treatment or, in serious situations, bringing your remains home. Insurance covers these significant costs.
• Emergency medical evacuation: If you need urgent transportation to a hospital equipped to treat your condition, evacuation costs are covered. This is critical for remote or developing countries where medical facilities are limited.
• Baggage delay: If your luggage doesn't arrive with you, this covers essential purchases like toiletries and clothes. You get reimbursed for every four hours of delay, up to your limit.
• Pre-existing condition: A medical condition you had before buying the policy. Some plans cover it; others don't. Always disclose your health conditions when buying insurance.

Type of Coverage

Travel insurance includes several types of protection.

• Medical and evacuation coverage: It covers medical expenses, emergency treatment, and emergency evacuation. This is the most important coverage. It protects you from massive healthcare bills abroad.
• Trip protection coverage: It includes cancellation, curtailment, and delay benefits. It protects the money you invest in your trip.
• Baggage coverage: It protects your luggage, personal items, travel documents, and money. It covers loss, damage, or delay.
• Personal liability coverage: If you accidentally damage property or injure someone while travelling, this covers your legal responsibility and compensation claims.
• Travel inconvenience coverage: It covers unexpected situations like visa refusal, travel document loss, or significant flight delays. It helps manage travel disruptions.
• 24/7 emergency assistance: It is available round-the-clock for emergencies, medical advice, or travel support. You can call anytime from anywhere in the world.

Example scenarios and how terms apply

• Scenario 1: You get sick abroad: You're travelling and suddenly develop severe food poisoning. You visit a hospital and receive treatment costing USD 3,000. You have USD 100,000 medical coverage with a USD 100 excess. You pay USD 100 out of pocket. Insurance covers USD 2,900. Your claim is processed, and you're reimbursed.
• Scenario 2: Your flight gets cancelled: Your flight home is cancelled due to bad weather. You need to stay an extra night. Your policy includes USD 1,000 travel delay coverage with a USD 50 per four-hour delay. You're eligible for reimbursement up to your limit.
• Scenario 3: You need to cancel your trip: You book a USD 5,000 holiday but get injured a week before departure. You can't travel. Your trip cancellation coverage reimburses the USD 5,000 for flights and hotels you prepaid. Your excess applies, so if it's USD 100, you receive USD 4,900.
• Scenario 4: Your luggage goes missing: Your baggage doesn't arrive with you. Your policy includes baggage delay coverage of USD 1,000. For every four hours of delay, you get USD 50. After 12 hours, you're entitled to USD 150 for emergency purchases.
• Scenario 5: Medical evacuation is needed: You're trekking in a remote area and suffer a serious injury. You need an emergency helicopter evacuation to a hospital. This costs USD 50,000. Your emergency evacuation coverage, up to USD 500,000, covers this entire cost. You pay nothing.

Pro tips for reading your travel policy document

Here are some expert tips for reading your travel policy document well:

• Read the coverage table first: Most policies have a table showing what's covered and limits for each benefit. This gives you a quick overview of your protection.
• Highlight exclusions: These are things not covered. They're crucial. Some common exclusions include high-risk activities, travel to countries with travel warnings, and claims from undisclosed health conditions.
• Check your excess amounts: Note how much you'll pay out of pocket for different types of claims. Medical claims might have a USD 100 excess, while baggage claims have none.
• Verify coverage limits: You need to make sure your medical limit is adequate for your destination. Also, the trip cancellation limits must match what you're spending on your trip.
• Understand what "covered reason" means: Trip cancellation only covers you if you cancel for specific, covered reasons. Boredom or a change of mind doesn't count. Read which situations qualify.
• Know how to claim: Find the claims section. Understand what documents you need, who to contact, and how long processing takes. Save this information.
• Make sure to ask questions: If anything is unclear, contact Liva Insurance before travelling. It's better to ask now than face confusion later.

Conclusion

Travel insurance terms aren't complicated once you understand them. They protect you from situations that could cost thousands of dollars and ruin your trip.

You must take some time to learn these terms. Read your policy carefully.

You must take some time to learn these terms. Read your policy carefully.

You should always ask questions if anything confuses you at all. Smart travellers understand their coverage before they need it.

At Liva Insurance, we make buying travel insurance online simple. Our plans include comprehensive medical coverage, trip protection, baggage benefits, and 24/7 emergency assistance.

Disclaimer: The limits and benefits mentioned are for illustrative purposes only. Please refer to the LIVA Travel Insurance policy wording for the actual benefits and applicable limits.