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Stuck in a foreign land? Do you have to pay an extra premium to extend travel insurance?

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Est read time 3 Minutes Published on 24th Feb 2020

From beautiful beaches to snow-capped mountains, from breathtaking architectural wonders to sumptuous cuisines, there are so many things across the world waiting to be explored. But unfortunately, the Coronavirus outbreak sent several countries in lockdown for months. Every day, the rules, regarding travel from and to foreign countries kept changing and flights were getting cancelled, and the wait just got longer. So many people who needed to come back to their country or leave due to unavoidable reasons, but got stuck. Are you one among them? If yes, then probably at some point, you would have wondered whether you will need to pay an extra  premium for travel insurance due to COVID-19 lockdown. 

1. Why is travel insurance needed?

Let us first quickly understand why such insurance is even needed in the first place. While travelling in a foreign country amid people you don't know or language you can't speak, it is better to stay safe. While you think you will enjoy your stay, there is always a risk of injury or sickness that can ruin your trip and skyrocket your expenses given how expensive the medical facilities at international destinations are. To defend yourself and your loved ones from any such unforeseen expenses, it is crucial to opt for a travel insurance policy. This policy will take care of loss of baggage, flight delays, hospitalization expenses, compensation of damages to be paid to a third party, etc. In case of death or permanent disability, lump sum compensation is also paid by the insurer.

2. Validity of the insurance and its extension 

You have the option of choosing single trip international insurance or a multi-trip one, depending upon how often you wish to travel overseas. You can change your travel dates after taking the policy, but once your journey has begun, you cannot buy a policy. This is because your policy start date and purchase date cannot be later than your trip's commencement date. However, you can cancel your insurance, in case you have to cancel your travel by paying a small cancellation fee. If you are stuck in a foreign country due to unforeseen circumstances, you can extend the  travel insurance online before the policy expiry date in a seamless manner. It will keep your stay covered for the extended period.

3. COVID-19: Do you have to pay an extra premium to extend your foreign travel insurance?

The cases of coronavirus infections are rising worldwide, and countries are lifting travel bans only partially. Observing how this might affect the policyholders, the Insurance Regulatory and Development Authority of India (IRDAI) asked insurers not to levy any additional charge on those policies, valid between March 22 and April 30, 2020. 

In case, you are seeking an extension because you had travelled abroad before the pandemic escalated and had to stay put due to the travel restrictions, you must do it before the expiry of your existing policy. You must inform the insurer 7-10 days before the policy expires as any claim will be rejected once the policy expires. You can get it extended up to 180 days or a year, depending upon your insurer is offering, and pay the additional premium for that. Since the premium for travel insurance would be paid online on the insurer's portal, you will get a copy of the policy with the extended date, and it will serve as proof of insurance for all purposes. So, yes, seeking an extension for your foreign travel insurance will require you to pay an extra premium.

However, some policies have an automatic extension clause. If you have opted for that, then all you have to do is inform your insurance provider. You will be given an extension for as many days as your plan allows without charging any additional premium for an extension.

Also, note that while travel insurance is meant to protect you from medical emergencies and provide you with the benefit of a cashless treatment facility, the policy may or may not offer for COVID-19 cover simply because no one saw it coming when the agreement was being drafted. It is always better to check the policy wording for that and be sure.  

Conclusion

Being alert and taking all the necessary precautions while travelling to a foreign country was always essential, and now you have to be extra careful. Understanding the changing travel restrictions and syncing your insurance requirements accordingly can save you from major hassles and financial losses. Thankfully, now with travel insurance online, you can easily visit your insurance provider's page and easily request an extension.

Disclaimer:  The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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