insurance excess
Backpacker Travel Insurance
Backpacking has become more mainstream in recent years, and many policies will cover people from an age of 17 or 18, through to when they are 60.
Policies can be for up to a year or 18 months, and are intended for people wanting a break from their career, prior to their retirement. Some policies will include an option to return home a few times, for a limited period during this length of the policy.
Personal Accident Insurance
Personal Accident Insurance
Personal Accident Insurance is a type of insurance policy widely used both domestically and when travelling abroad for any reason.
It can normally be used in conjunction with a travel insurance policy, but it is important to understand the differences between the two.
A personal accident policy is designed to provide benefits in the event of death or serious injury to the policyholder or their family.
This usually includes :
- Accidental death
- Permanent disability by way of accident
- Temporary disability by way of accident
- Loss of various limbs by way of accident
- Loss of use of certain parts of the body temporarily
- Cash payment relating to staying in hospital ( usually own country only)
These benefits will all have specific cash sums allocated to them, and there will be very specific exclusions to the policy which normally include the following :
- Any type of illness or sickness unrelated to any accident that might have happened
- Any type of self-harm or self-inflicted injuries
- Anything that constitutes dangerous or reckless behaviour, including driving under the influence of alcohol or drugs
- Professional sports, as well as a lot of what is considered dangerous sports, which the policy would spell out.
- Any type of pre-existing condition
These exclusions are meant to make it clear in one sense that these benefits are different from what might be expected under a normal travel insurance policy.
They are designed to be of value to the policyholder purely in the event of an accident, to provide some financial help in what could be an overwhelming emotional situation.
Some travel insurance policies will include some or all of the benefits normally associated with a personal accident policy as part of their standard benefits. Others will offer them as an additional option to purchase
What is a no excess travel insurance policy ?
What does a no excess travel insurance policy mean?
A no excess travel insurance policy is simply a policy that does not contain any type of excess or deductible as part of its terms and conditions. This can apply to a single trip insurance policy, an annual or multi-trip insurance policy or any type of specialist travel insurance policy.
What is an excess?
An excess is a fixed cash figure which applies to any claim amount that is paid under the policy to the policyholder. The amount is deducted under the final claim settlement and retained by the insured themselves.
As an example, if a travel insurance policy has an excess of £100, and a claim under the policy is agreed for £1000, the insurance company would pay £900, and the policyholder would retain the other £100, being the amount of the excess.
An excess is also sometimes referred to as a deductible. It is the same thing, deductibles being widely used in health insurance, and many insurance companies refer to trying to keep continuity in terms of the language they use.
What are the benefits of a policy excess
An excess in travel insurance policies, as opposed to deductibles in health insurance and other types of insurance, is normally relatively small in cash terms.
Its main benefit is to insurance companies, as it prevents claims that are small in cash terms, which would be un-economical for them to process, as well as being time-consuming for all parties involved.
The excess on a travel insurance policy, apart from being relatively small and financial terms, is normally a standard fixture of the policy’s terms and conditions.
The excess may apply to any one section of the policy, there may be different exercises for different sections, which may differ in cash terms.
What is the maximum excess on travel insurance?
The maximum excess is simply the largest amount that the excess can be, either for a particular section of the policy or for the policy as a whole.
That can sometimes be complications as to whether a claim should be considered one or more events, but this is unlikely to occur with a standard travel insurance policy.
People may choose to increase the excess on their policy, either for the policy as a whole or for any one particular section of it, in return for a reduced premium for the policy as a whole.
What is a no excess travel insurance policy?
A no excess travel insurance policy, also sometimes referred to as a travel insurance excess waiver, is a policy where any excess has been specifically deleted from the policy’s terms and conditions, by way of a special endorsement.
This means that if any claim is agreed upon under the policy, then the amount will be paid in full with no deduction to be retained by the policyholder.
Insurance companies will normally charge more as a premium for the policy if this excess waiver is included in it.
Some companies make a point of having special plans that don’t include an excess, but again they will be more costly than the standard travel insurance policy.
Other types of travel insurance policy excesses
Most types of excess in policies are financial, but they can be time-based as well. This means that there is a waiting period of a certain number of days before specific benefits of the policy can be paid, once the policy has been taken out.
The other type of excess used in insurance policies is what is known as a franchise. This is rare in travel insurance policies but can be found in certain types of specialist areas.
A franchise is a fixed cash amount where the limit has to be reached for any claim can be paid, but once the limit has been reached any amount is paid in full.
As an example, if a policy has a franchise or £500, then any claim beneath that amount will not be paid at all, but any claim over £500 will be paid in full with no deduction as would happen with a normal excess.