Student travel cover: Buy before setting off to study abroad
But ensure that your policy aligns with your foreign university’s requirements
Avantika Singh, 32, will head to the United
states (US) in the last week of August
to start a nine-month Masters in Engineering programme at the University of
California, Irvine. She is not sure whether she should purchase an insurance
cover from India or do so once she lands in the US.
Contrary to what its name suggests, this plan
is more than just a travel cover. It is a safety not that safeguards students
from unexpected financial setbacks due to medical contingencies, travel
disruptions, and even legal troubles abroad.
Buy at home or abroad
Most experts favour buying a plan from India.
“Indian insurers charge lower premiums compared to their foreign counterparts.
Furthermore, having a policy from India means that in case of an emergency, a
family member back home can notify the insurer and ensure that the insurance
requirements are handled efficiently. This eases the burden on the student who
would otherwise have to manage it alone in a foreign land.”
Indian policies are also more comprehensive. ”A
health insurance plan purchased from a foreign university will not cover the
student during travels to and from India, as Indian policies will. Plans bought
in India also cover a contingency visit by a family member if the student fails
ill abroad. These policies also provide personal liability cover. And they also
cover the student on visits to other countries during holidays.”
Buying a cover in India may also be the more
prudent choice. “The student could face difficulties in obtaining in obtaining
a cover abroad, given the varied terms and conditions that prevail in foreign
countries.” A student who decides to purchase a policy in India must, however,
ensure that it meets her university’s coverage criteria.
Sum insured: Meet univ norms, and then buy a little more
Students should first check the sum insured
required by their university. That should be the baseline cover they should
buy. Beyond that, they can afford. Buying a higher cover is especially crucial
for students heading to the US or the Canada, where health care costs are
exorbitant. “If the student is going abroad for a short term exchange programme
of one week to three months, then a cover of $50,000 or $ 1 lakh may suffice.
But if she is going for a one-to two-year programme, then a cover ranging from
$2.5 lakh to $5 lakh is ideal.”
Sharma recommends a sum insured of $10 lakh for
students heading to the US for a year.
How much is the premium?
Premium costs vary depending on the sum
insured, policy features, and countries covered. According to Kapoor, the cover
usually costs around 1-2 percent of the tuition fee. Mishra informs that a
cover of $1 lakh for one year is likely to cost around Rs18, 500-20,000.
Sharma estimates that a $10 lakh cover would
cost anywhere between Rs 30,000 and Rs 50,000 with premium being lower if
coverage in the US and Canada is excluded.
Must-have features
Student travel insurance plans offer a wide
menu of features. On the medical side, they cover hospitalisation, outpatient
department (OPD) and dental treatment, medical evacuation, and repatriation of
remains.
They also cover travel-related incidents such
as loss of baggage; lost electronic items, passport and driving license; and
flight delay or trip cancellation. Legal covers include personal liability (in
case the student causes harm to someone or their property) and bail bond cover
(in case the student gets arrested).
Study-related covers include study interruption
and sponsor protection (if the persons funding the student’s studies pass away,
the plan makes a payout).
Watch out for exclusions
Standard plan usually do not cover pre-existing
diseases, non-prescription, drugs, diseases arising from alcohol and drug
consumption, experimental or non-standard treatments, and cosmetic surgery.
Other exclusions might include adventure sports, HIV-AIDS related illnesses,
war, etc. However, students can buy coverage for some of these exclusions, such
as pre-existing disease, as an add-on.
Will settlement be cashless?
Indian insurers partner with international assistance
companies for efficient claim settlement. For example, “These partnerships
enable cashless treatment for students, especially when hospitalisation is for
more than 24 hours and treatment takes place in a network hospital.
Study-related benefits, he adds, are offered in the form of reimbursement.
Mistakes to avoid
Mishra suggests students buy this cover well in
advance and not leave the decision to the last moment.
Sharma suggests comparing the coverage’s and
premiums offered by various insurers. Make sure that the policy suits the
duration of your course and provides adequate geographical coverage based on
your needs. A student studying in Canada, for instance, might want to include
coverage for the US, as she is likely to visit that country during her study
period.
STUDENT TRAVEL INSUARNCE COMPARE PREMIUMS
|
Company
& plan |
Premium
(RS)* |
|
Care-Student
Explore |
24,146
for sum insured (SI) of $300,000 |
|
Tata
AIG-Student Travel Guard |
37,098
for SI of $250,000 |
|
Bajaj
Allianz Travel Prime Student
Silver |
22,844
for SI of $300,000 |
|
Niva
Bupa-Student Travel Assure |
22,834
for SI of $250,000 |
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