If you’re about to purchase travel insurance, it’s essential to familiarise yourself with the commonly used terms. This way, you understand the terms of your policy and know exactly what it covers. Here’s a list of standard travel insurance terms you’re likely to see in your policy.
In travel insurance lingo, an accident is an unexpected circumstance or event without deliberate intent. For example, if you lose luggage during your trip, that’s an accident, which can be covered in your insurance policy.
However, it’s essential to note that some providers only cover the bare minimum for accidents, e.g., they may only cover the loss of clothing items and not valuable luggage unless you get additional cover.
2. Accumulation limit
This is the maximum amount payable by your provider in respect of any one accident. If the accumulation limit is exceeded, the amount is distributed on a proportional basis to all the persons listed in your policy.
In the event you pass, your beneficiary is the individual who becomes eligible to receive payment as stipulated in your retirement plan, will, life insurance policy, trust, annuity or other contract, unless you demand otherwise.
4. Cancel For Any Reason
This means you can cancel without giving any reason. However, you need to provide proof of health, weather, family or political emergency to justify the reimbursement and cancellation of trip costs.
5. Dangerous Sports Waiver
Most travel insurance policies don’t cover you for high-risk activities such as winter sports (snowboarding) or riding a motorcycle. So, purchasing a dangerous sports waiver as an add-on waives such sports, covering them in the event of injury.
6. Total number of travel days
This is the maximum number of days insured under your travel insurance policy. It’s vital to enter the correct number of days you’ll be travelling when purchasing your cover so that you’re covered throughout your trip.
If you fail to pay the required renewal premium, your provider terminates your policy. This is known as a lapse.
It’s imperative to ask your provider to clarify any terms in your policy that you don’t understand to avoid surprises.
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