Articles

Getting admission in a college abroad requires a lot of preparation, and not just in terms of studies. There are piles of paperwork to get through, from admission forms to visa application. But there is one essential document that people often overlook-a student insurance policy.

Such a policy combines the best of both a medical insurance plan and a regular travel policy. So, it covers your travel to and from the foreign location where you plan to study as well as all medical exigencies there. Medical insurance is indispensable as the cost of medical treatment abroad can be forbidding.

For instance, while the consultation fee of a doctor in India generally ranges between Rs 150-500, it can cost from $100-300(Rs 4,800-14,400) abroad. Apart from the basic medical expenses, these plans also cover other aspects, such as personal liability and permanent disability due to an accident. The travel insurance facility insures you against loss of passport and baggage delay. Recently, insurers have also started providing additional features, such as paying for a visit by the parents if the student is critically ill and hospitalised or posting bail if the student is arrested for a bailable offence.

An essential cover

Medical insurance is compulsory in most universities and colleges abroad. However, majority of the students going overseas to study are not aware of this. When they do realise the need, they have to buy an insurance policy from the university. This can be more expensive, in most cases almost thrice the price, than what they would pay for a policy taken in India. Most insurance companies in the country have now started selling such policies via banks, so students who apply for an education loan can be made aware of these policies.

A problem may arise if the foreign university doesn't accept a policy that is issued in India and makes it mandatory for the student to buy a insurance locally. The college abroad may fail to honour a policy issued in India not because it is incompatible but because the plan does not satisfy its minimum coverage requirement.

So, before you buy a policy, go through the Website of the educational institution (which will have the details of the insurance coverage needed) and check whether the policy fulfils all the requirements. "In case you have bought a policy from India that is deemed unsuitable by the foreign university, you can cancel it. You will be eligible for a refund of the premium paid. To cancel the policy, you will have to send a request along with a letter from the university stating that the policy has been rejected by it," says Gaurav Garg, MD & CEO, Tata AIG General Insurance.

Don't start panicking if you or a relative is already abroad and without a student insurance policy. Advises TA Ramalingam , head, underwriting, Bajaj Allianz General Insurance: "Usually, September is when most student insurance policies are bought. However, there is an increased off take in November and December too. This is usually because most students realize the importance of it only when they have joined the college abroad. However, they can ask a family member to buy a policy here and mail (or e-mail) them a copy."