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Get visa stamped on passport, confirm hotel booking, book air tickets, get foreign currency and traveller's cheques-the checklist for a foreign holiday can be long and tedious. But don't forget to add travel insurance among the hundreds of things you have to do. It will ensure that in case of an unexpected turn of events, your dream holiday doesn't turn into a costly nightmare.

Ask Ami Mistry. The Mumbai-based consultant was enjoying a holiday with her husband in Thailand in November 2008 when the tranquility was shattered by civil unrest. The Mistrys had originally planned for seven days, but were forced to extend the trip by four days. "Our total cost escalated by about 30%," says Mistry. Unfortunately for the Mistrys, they didn't have travel insurance. For as little as Rs 800, the additional expense incurred on boarding, lodging and booking new tickets would have been taken care of. Says Sanjay Datta, head of customer service, ICICI Lombard General Insurance Company: "Only about 15% of overseas travellers purchase travel insurance. Most are not fully aware of the benefits it offers," he says.

A travel insurance policy covers unexpected medical and non-medical expenses during your travel. It also offers personal accident cover and compensates for mishaps such as delayed flights, lost passport, delayed and lost baggage, even missed connecting flights. Some companies even cover the contents of your house against burglary in your absence. The cover starts from the time you leave for the airport. Others compensate you for the distress suffered if you become the victim of a hijacking. For a small price (see table) you can buy yourself peace of mind. A travel insurance policy cannot prevent things from going awry but it can compensate you for the loss and shield you from the financial burden due to the mishap.

What's on offer

You can pick from a wide range of policies customised to the needs of different types of travellers. There are individual and family policies available. You have to choose the number of days of travel and the amount of cover. The premium depends on the length of the tour, the age of the individual, the destination country and the insured amount.

Most travel plans also cover senior citizens, though the premium for them is higher. For instance, if you are below 40 years and heading to Australia, the premium for a cover of $50,000 for 29-35 days comes to Rs 1,002. But if you fall in the age bracket of 61-75 years, the premium more than doubles to Rs 2,061. Some other companies insure senior citizens up to 80 years of age.

If you are a frequent traveller, you can opt for a multi-trip policy, which could turn out to be cheaper than individual plans. These travel plans cover you for a period of one year but each trip can be for a maximum of 30-45 days. There are various annual health plans also on offer for international travellers, but they cover only medical emergencies. Atrey Bhardwaj, head of general insurance, Bonanza Portfolio , says that a comprehensive cover always makes more sense because it covers other risks as well.

Source : ET Bureau