Having a travel insurance plan is fast becoming an essential facet of responsible travel, where you prepare in advance for addressing any unforeseen circumstances such as flight cancellations. Excess claim is the pre-established amount that policyholders need to pay towards a claim that you make on the travel insurance policy.
Most insurance companies require a claim to be registered within 25 to 31 days of return, or else it will not be considered. In case the policy lapses, there is always a possibility of higher insurance rates.
What does excess mean in travel insurance?
The excess is the initial portion of any claim that you are responsible for paying out-of-your pocket before the insurance provider steps in. You will have to give this specified amount of money when you make a claim.
For example, if four people are travelling under the family travel insurance policy and the cost of the holiday is INR 1000 per person. In this case, the excess is set at INR 200 per person. Under unexpected circumstances, if two members decide to cancel their trip then they would recover at least INR2000 holiday costs as possible. However, due to the excess, they would receive INR 1600 between them, they will have to pay an excess of INR 200 each.
Consider the nature of your trip. For example, if you're planning on engaging in physical activities, such as underwater activities, then the probability of making a claim increases. Therefore, it is worth considering paying a little extra premium for a policy with lower excess.
Should you select excess option in your travel insurance?
An excess is applicable to each claimable incident. You can reduce your excess option after you’ve purchased your policy, provided you have not yet departed for your holiday.
If you make a claim in your travel insurance policy, the excess is the sum that the insurance company will take before they pay your claim. This is also referred to as a 'deductible.'
Initially, you do not have to pay the excess when you purchase your policy. This amount has to be paid only in case you have to make a claim. With some travel insurer providers, you can increase your excess. This will reduce the cost of your travel insurance policy premium.
Remember, it is essential to evaluate your specific circumstances and weigh the potential risks before deciding upon the excess claim.
How does excess work in travel insurance?
Comprehending the concept of excess is essential to make informed decisions when it comes to filing insurance claims.
The excess is characteristically applicable on a per-person basis. So, if you are listed in a group or family travel insurance policy, whether for a single or double trip, the excess will be applicable to each individual for every claim made.
For example, if your travel insurance policy has an excess of INR 1000 and you submit a claim for INR 5000, then the claim payment will be adjusted to INR 4000 after deducting the excess amount. Suppose your excess is set at INR2000, the claim payment will be reduced to INR 3000, as you will have to pay a higher portion of the claim.
Factors to consider while filing an excess claim are:
Contact your insurance broker to guide you to assess your situation and damage, and then send the claim for further investigation
Once the claim investigation begins, the amount of damage will be determined
The policy will be reviewed and the adjuster will decide as to what is covered and what not
Experts will be hired to complete the evaluation
Vendors will be hired to repair the excess damage done and payments will be arranged
Types of Travel Insurance Excess
Listed below are the three types of travel insurance excess to consider:
Standard Excess
It is the fixed amount that your insurance provider indicates you must pay if you have to make a claim file a successful claim
Voluntary Excess
In some cases, you have the option to customise the travel insurance excess before purchasing the insurance plan. The premium will change depending on the amount of deductible you select. A higher deductible will mean that you will have to pay a lower premium, whereas in a lower excess, you will have to make a higher premium.
Medical Excess
Travel insurance provider can take in a medical excess to be paid in case of a claim. To sum it up we can say that a travel insurance excess generally varies according to the type of travel insurance policy you’ve chosen. It also depends on the insurance provider you buy from and the duration of your holiday. Your age also plays a major role in deciding the travel insurance excess.
Conclusion
A travel insurance excess is a fixed amount you may be required to pay towards a travel insurance claim. It is crucial to comprehend the concept of excess and review the policy documents of your travel insurance plan clearly to avoid confusion that will arise when you have to make a claim. Make your travel plan easy to navigate and prepare in advance to make it a relaxing, stress-free trip!
