Travel Medical Insurance – Buy Travel Medical Insurance in India

The importance of having travel medical insurance is now a well-known fact all over the world. Indian residents today are well aware of the high costs of medical services overseas. Whether you are visiting Europe, North America or any other western country, medical costs have skyrocketed beyond the reach of many — the only option left to travellers is to get insurance.

The purpose of this article is not to highlight the necessity of getting insurance, but to stress my reasoning as to why those travelling from India should NOT buy insurance from Indian insurance companies. Those who have a different opinion can send me their comments and they will be posted on this page.

Why you should not buy travel medical insurance from India

Most people going on a visit overseas — to visit friends or family, or perhaps on a vacation — are made aware of travel medical insurance by their travel agents. Travel agents not only recommend buying travel medical insurance but also sell policies, or steer clients to insurance companies that may give them a commission in the form of a finder's fee.

Consider the scenario of buying insurance from a travel agent in India. Remember, these are travel agents who sell airline tickets — they are not insurance agents. Chances are they may not even have read the policy they recommend to all their clients.

Travel agents sometimes verbally confirm all sorts of coverages. Talk is cheap — and does not obligate an insurance company to pay out anything. What matters is the wording in the insurance policy.

Buy travel medical insurance from the country you are visiting

Suppose you are visiting the USA — you may be better off buying visitors medical insurance from insurance providers in the United States.

Why it is better not to buy travel medical insurance from India

• Hospitals prefer local insurers. Hospitals and medical clinics abroad prefer to deal with local insurance companies. In fact, they deal with these companies on a daily basis and are familiar with the procedures involved.
• Indian insurance may require out-of-pocket payments. In some cases, Indian insurance policies require the insured to pay the hospital and then file a claim for reimbursement back in India. This problem is usually avoided when you have coverage with a local insurance company.
• Reimbursement is difficult. Getting reimbursed for medical expenses incurred abroad is not as easy as it sounds — loads of paperwork and documentation will be demanded by insurance companies before you get paid.
• Local insurers have negotiated rates. Local insurance companies normally have negotiated lower rates with most hospitals for medical services. This matters because, in some cases, medical procedures may have a cap regardless of your maximum coverage — if more money is charged for a procedure, you will have to pay the difference.
• Pre-existing condition exclusions. If a medical procedure turns out not to be covered (for example, due to a pre-existing condition), you may be responsible for paying the bill — and the lower the hospital's bill, the better for you.

Read the exclusions carefully

Regardless of the type of insurance policy you consider, insurance purchasers must look not only at what is covered but the exclusions attached to the policy.

Example – ICICI Lombard coverage caps

ICICI Lombard offers coverage amounts from US$ 50,000 to US$ 250,000 for travel medical insurance. Some people will purchase the $250,000 coverage without reading the policy wording that states: the maximum amount that can be claimed per illness or injury is US$ 100,000.

In a scenario where a person with coverage of $250,000 required medical services while visiting the United States, and the hospital visit bill ends up over $100,000, the policy would only pay a maximum of $100,000 — despite the coverage being $250,000. Any amount over $100,000 becomes the responsibility of the insured. A medical bill over $100,000 from hospitals in the US or Canada is not unusual.

Sub-limits on your policy – may leave you paying despite having insurance

ICICI Lombard also clearly states that for persons aged 56 and above, further sub-limits may apply. Here is an excerpt from their policy document:

For persons aged 56 years and above, the maximum eligible medical expenses per sickness, disease or accident sustained or contracted within the period of insurance whilst on the trip abroad are as follows, irrespective of the plan/option purchased. These limits are further restricted to the maximum sum insured specified in Part 1 of the schedule.

Sub-limits:

Category	Limit
a) Hospital room and board, and hospital misc. expenses	Max US$ 1,600 per day up to 30 days
b) Intensive Care Unit	Max US$ 3,000 per day up to 7 days
c) Surgical treatment	Max US$ 12,000
d) Anaesthetist services	Up to 25% of surgical treatment
e) Physician's visit	Max US$ 75 per day up to 10 visits
f) Diagnostic and pre-admission testing	Max US$ 750
g) Ambulance services	Max US$ 500

Consider each of these sub-limits carefully to ensure you don't end up paying medical bills abroad despite having insurance. Take, for example, the maximum of US$ 1,600 per day for 30 days — that amounts to a total coverage of $48,000. Now, $48,000 may be a lot of money in India, but when it comes to medical expenses in countries such as the USA or Canada, this amount may fall short.

Don't put yourself into a false sense of security when it comes to insurance coverage. Ask questions, read and understand the policy wording before buying. Don't take any verbal assurance from salesmen — if it's not written in the policy, it's not covered.