Facts About Travel Insurance in Pakistan

July 25, 2024

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Travel insurance is an important factor for travellers, offering coverage for astonishing events that can occur during a trip. In Pakistan, the travel insurance market is rising as more people understand the importance of maintaining their travels. This article explores the key figures about travel insurance in Pakistan and its drawbacks.

Types of Coverage:

Travel insurance policies in Pakistan usually offer a variety of coverage options, including:

Medical Coverage:

This is crucial for covering medical expenses incurred due to illness or injury while travelling. It includes hospitalisation, doctor visits, and sometimes even emergency evacuation.

Trip Cancellation/Interruption:

This covers the cost of the trip if it is cancelled or interrupted due to unforeseen events such as illness, death in the family, or natural disasters.

Baggage Loss/Delay:

Provides compensation for lost, stolen, or delayed baggage, ensuring travellers have funds to replace essential items.

Personal Liability:

Covers legal expenses if the insured causes injury to a third party or damages their property.

Accidental Death and Dismemberment:

Offers compensation in the event of accidental death or severe injury.

Leading Providers:

Some insurance companies in Pakistan offer travel insurance, including Jubilee General Insurance, Adamjee Insurance and EFU General Insurance. These companies offer many strategies for varied types of travellers, such as tourists, business travellers, and students.

International and Domestic Coverage:

Travel insurance in Pakistan is available for both international and domestic trips. International policies typically cover a broader range of risks due to the higher cost of medical treatment and potential travel disruptions abroad.

Premium Calculation:

The cost of travel insurance in Pakistan depends on several factors, including:

Destination: Travel to high-risk areas may result in higher premiums.

Duration of Trip: Longer trips generally incur higher premiums.

Traveler’s Age: Older travellers may face higher premiums due to increased health risks.

Coverage Amount: Advanced coverage limits cause higher premiums.

Claims Process:

The claims process for travel insurance in Pakistan usually involves submitting a claim form along with necessary documentation, such as medical reports, police reports (in case of theft), and receipts. Insurance companies strive to process claims promptly, though the time frame can vary.

Drawbacks of Travel Insurance in Pakistan

Limited Awareness and Penetration:

Regardless of the benefits, travel insurance perception in Pakistan rests low. Many travellers are either unaware of the importance of travel insurance or consider it an unnecessary expense. This lack of awareness causes partial market development and many uninsured travellers.

Exclusions and Limitations:

Travel insurance policies come with various exclusions and limitations, which can be a drawback for policyholders. Common exclusions include:

Pre-existing Medical Conditions: Many policies do not cover pre-existing medical conditions unless specified.

High-Risk Activities: Activities such as adventure sports, hiking, or scuba diving may not be covered or may require additional premiums.

War and Terrorism: Events related to war, terrorism, or civil unrest are often excluded from coverage.

Non-Medical Emergencies: Certain non-medical emergencies, like political evacuations, may not be covered.

Claims Rejection:

One significant drawback is the potential for claims rejection. Reasons for rejection can include incomplete documentation, failure to disclose pre-existing conditions, or engaging in excluded activities. This can lead to financial strain for travellers who are counting on the insurance payout.

High Premiums for Older Travelers:

Older travellers often face significantly higher premiums due to the increased risk of health issues. This can make travel insurance less affordable for senior citizens, who might already be on a limited budget.

Complex Terms and Conditions:

The terms and conditions of travel insurance policies can be complex and challenging for the average consumer to understand. This complexity can lead to misunderstandings about what is covered and what is not, resulting in disappointment during claim settlement.

Inadequate Coverage Amounts:

In some cases, the coverage amounts offered by travel insurance policies in Pakistan may be inadequate to cover all potential expenses. For example, medical treatment costs in certain countries can be excessive, and the coverage provided may fall short, leaving travellers to bear significant out-of-pocket expenses.

Limited Provider Network:

The network of healthcare providers affiliated with Pakistani insurance companies may be limited in certain regions, especially remote or less-developed areas. This limitation can pose challenges in accessing medical care promptly, reducing the effectiveness of the insurance.

Conclusion:

Travel insurance in Pakistan offers essential protection for travellers, covering a range of risks from medical emergencies to trip cancellations. However, there are prominent drawbacks, including limited responsiveness, omissions, the potential for claims rejection, and high premiums for older travellers. Understanding these pros and cons can help travellers make knowledgeable decisions and select the best travel insurance policy for their needs. At Cometinsure, their mission is to provide reliable, innovative insurance options that adapt to the evolving needs of their clients.