A type of insurance that covers the costs and losses associated with travelling domestically or abroad is referred as travel insurance. It is designed to protect against risks and financial losses that could happen while traveling.Travel insurance companies offer 24/7 emergency services. They mainly cover for trip cancellation charges, medical expenses, accidental death, personal effects, re-booking canceled flights, replacing lost passport and more on. Some insurances may also include damage to personal property, rented equipment like rental cars and others.There are several travel insurance companies in LAMEA who sell tickets or travel packages, and offer customers the option to buy travel insurance.
Trip cancellation or trip interruption insurance covers for common reasons such as illness, weather related issues, sudden business conflicts, and so on. If the customer decides shortly i.e. within seven to ten days after the purchase that the trip is not meeting their needs, they can get a full refund within a specified duration.
At the same time, baggage and personal effect coverage in travel insurance provides an additional layer of protection. If the baggage is lost, stolen, damaged, or destroyed due to certain issues, full amount is refunded.
There are two types of medical travel insurance policies i.e. short term medical & major medical coverage. Short tern policies are for tours starting from five days to twelve months, whereas major medical coverage is for long tours ranging from six months to more than a year. It must be noted that emergency medical coverage are not much beneficial, as most health insurance companies pay only for reasonable hospital costs, rather than paying for medical evacuation.
Travel insurance also include accidental death coverage which is not beneficial for the customers having life insurance policy. In case when an accident leadto death, disability, or some serious injury to the customer or traveler, the surviving beneficiaries receives an accidental death and flight accident policy benefits.
According to a report published by Allied Market Research, the LAMEA travel insurance market size is projected to grow with a significant CAGR from 2016 to 2022. Latin America is currently holding the highest market share,owing to a significant increase in the number of outbound travelers.
Moreover, certain factors such as rise in the purchasing power of the middle class population,economic development, and huge investment in tourismacross the region are boosting the travel insurance market even more. The outbreak of the COVID-19 pandemic has resulted in travel disruptions, which in turn, has created huge demand for travel insurance.Here, it is worth mentioning that LAMEA travel insurance market is expected to grow more in the near future.
Author’s Bio-Suchita Gupta is an explorer, musician and content writer. While pursuing MBA, she found that nothing satisfies her more than writing on miscellaneous domains. She is a writer by day, and a reader by night. Besides, she can be found entertaining her audience on social media platforms. Find her on LinkedIn & Instagram.