Going to study abroad is one of the most defining moments of a student's life. Life in a foreign country can be tricky, especially since it means staying away from one's loved ones. Plus, there is the pressure of academics.
But while one plans for foreign education years in advance, one thing students tend to neglect is insurance. Staying alone in a foreign country brings about several risks that need to be managed. Here is where student travel insurance can help.
Student travel insurance is essential as it helps students focus on academic pursuits without worrying about unforeseen circumstances. "With rising healthcare costs and university-specific mandatory student insurance requirements, having the right student travel insurance ensures financial security and peace of mind for students and their families," says Manas Kapoor, business head of travel insurance, Policybazaar.com.
Student Travel Insurance And Normal Travel Insurance: How Are They Different
But before we discuss this further, it is vital to understand the difference between student travel insurance and regular travel insurance.
"Mainly, the difference between student travel and normal travel insurance lies in the coverage and tenure," says Parthanil Ghosh, President of Retail Business, HDFC ERGO General Insurance.
Duration: Student travel insurance is designed for longer durations, typically matching the length of a student's course, ranging from several months to a few years. On the other hand, regular travel insurance is meant for shorter trips, often covering travel periods ranging from a few days to a few weeks.
Coverage: Student travel insurance primarily focuses on the unique needs of students abroad, such as covering tuition fees, compassionate visits from family in case of a medical emergency, and interruptions in academic pursuits.
Standard travel insurance covers common travel-related risks, including trip cancellations, baggage loss, medical emergencies, and travel delays. It may also include coverage for loss or damage of personal belongings left at home in India.
"A student travel insurance caters to the specific needs and risks associated with students studying abroad for extended periods, while a normal travel insurance is more general and suitable for shorter, leisure-focused trips with coverage extending to various aspects of travel and personal belongings both at home and abroad," says Ghosh.
What Is Covered By Student Travel Insurance ?
Let us take a look at the risks that are covered by travel insurance.
The student travel policy protects them from unforeseen expenses, including baggage loss, flight delays, medical costs, passport/laptop theft, legal fees, and any other challenges arising during their educational journey overseas.
"Moreover, the absence of a student travel plan might force the new settlers to pay out of pocket, which could affect their financial well-being. In addition, it is highly advisable to buy student travel insurance from India, as it will help students save significantly, as it costs much less here," says Kapoor.
Health Coverage: Studying abroad exposes students to various health risks, including unfamiliar illnesses or accidents. To alleviate the financial burden of hospital expenses, student travel insurance provides cashless medical care at network hospitals.
For non-network hospitals, reimbursement is facilitated through the submission of a claim for the billed amount. The medical coverage extends to dental expenses, medical evacuation, body repatriation, and lifelong disability.
Your university will also provide you with health insurance in most cases, so this is one risk covered in most cases. However, student travel insurance covers more than health coverage.
Emergency Evacuation: In cases of severe medical conditions, travel insurance often includes provisions for emergency evacuation, ensuring students can be safely transported to appropriate medical facilities.
Trip Cancellation Or Interruption: Unexpected events, such as family emergencies or academic issues, may require students to cancel or interrupt their overseas studies. Travel insurance assists in recovering costs related to trip cancellations or interruptions. We saw many instances of this during the Covid-19 pandemic.
Loss Of Baggage Or Personal Belongings: To protect against the loss or theft of personal belongings, including important academic materials/documents, laptops, and valuable items, travel insurance offers coverage.
Student travel insurance can thus help pay for the cost of replacing your passport and any other expenses you may incur.
"Baggage loss is a common problem for travellers, and it can be especially frustrating if you are a student travelling with all your belongings. Student travel insurance can help to reimburse you for the value of your lost belongings," says Aashish Sethi, head of health SBU and travel, Bajaj Allianz General Insurance.
Compassionate Visits: In the event of compassionate visits, student travel insurance covers emergency travel expenses for family members to the academy's country or for the student visiting their family.
Legal Assistance: Given the potential need for legal assistance in unfamiliar legal systems, travel insurance often includes provisions for legal support.
24/7 Assistance: Many travel insurance plans offer round-the-clock assistance services, helping with language barriers and locating healthcare providers.
Be Aware Of Exclusions: "While student travel insurance offers comprehensive coverage, it's essential to be aware of potential exclusions," says Santosh Puri, Senior Vice President of health product & process at Tata AIG General Insurance Company. Some of the exclusions include the following.
Pre-Existing Conditions: Some policies may exclude coverage for pre-existing medical conditions.
Illegal Activities: Coverage might not extend to losses resulting from willful participation in illegal acts, violations of the law, or attempted violations.
Alcohol Or Drug Use: Insurance limitations may apply when the insured is under the influence of intoxicating substances, except in cases where the insured is not directly responsible for the resulting injury or accident.
Non-Emergency Medical Procedures: Coverage may not include routine physicals or other examinations lacking objective indications or showing no impairment in normal health.
War And Civil Unrest: Losses arising from war, civil war, invasion, insurrection, revolution, acts of foreign enemies, or hostilities may be excluded from coverage.
"It's essential for policyholders to review the policy documentation carefully to fully grasp what the exclusions are," says Puri. This helps individuals make informed decisions and ensures a clear understanding of the scope of coverage provided by the insurance policy.
