Going abroad to study? Carry the right cover

Going abroad to study? Carry the right cover

The checklist for students planning their studies abroad is usually
long, but what should top the list is insurance. One of the reasons
why students should carry travel insurance while travelling abroad to
pursue higher education, is to cover medical expenses.

This is because the cost of healthcare overseas is expensive compared
to India. An insurance cover takes care of both medical and
non-medical expenses.

So, what kind of policy does a student need? For starters, it is best
to take insurance in India. Students do have the option of availing
themselves of insurance abroad, but the cost could be higher and scope
of coverage could also be limited.

That said, your student cover should ideally meet the insurance
criteria set by the university. The criteria could be in terms of
minimum sum assured or a list of specific covers.

Going abroad to study? Carry the right cover Caption


Here is a low-down on the options available.

Comprehensive cover
Most insurers such as Bajaj Alliance, Reliance and HDFC Ergo cover
basic expenses that include emergency medical expenses (approved by
emergency assistance service provider), repatriation of mortal remains
and medical evacuation and accidental death.

But there are products in the market that provide comprehensive
medical cover and include non-medical covers related to travel, study
interruption, sponsor cover and personal liability insurance.

For instance, in Bajaj Allianz Student Elite Gold plan, for SA of $2
lakh, you get cover for emergency medical expenses, medical
evacuation, emergency dental treatment, repatriation, accidental death
and disability, loss of checked-in baggage, tuition fee, bail bond
insurance, sponsor protection and family visit. The premium works out
to
9,947 per year (excluding US and Canada).

But for a SA of $3 lakh under Bajaj Allianz Student Prime Platinum
plan, your cover includes the above-mentioned covers along with that
for loss of passport and loss of laptop. The premium in this case
works out to
10,741 per year.

It is better to compare the covers offered by difference insurers to
choose the best comprehensive options.

Add-ons
You can also avail yourself of additional covers such as for maternity
benefits, physiotherapy, HIV, pre-existing diseases, cancer screening
and mammography examinations and emergency financial assistance. But
these predominantly come as riders; hence, you might have to pay extra
premium.

For instance, Apollo Munich offers additional covers such as for HIV,
emergency financial assistance, cancer screening and mammography
examinations, inter collegiate sport injury (up to medical treatment
sum insurance) and maternity and childcare benefits.

The sum insured ranges between $500 and $2,000 and medical treatment
covers up to sum insured.

The additional premium for medical expenses works out to
3,429,
including tax for one year (screening, HIV, sports injury and
maternity).

There are non-medical additional covers that include compassionate
visit (full circle economy class air ticket or five star railroad
ticket for one immediate family member and accommodation in case the
student gets hospitalised for more than seven days) and bail bond
insurance (covers the bail amount in case the student needs to be let
out on bail).

Check varsity requirements
While it is important to choose a comprehensive cover, ensure that it
meets the minimum requirements of your university.

For instance, Princeton University expects international students’
insurance to cover not only emergency medical expenses but also
injuries resulting from practice or taking part in intercollegiate
games at Princeton, athletic wounds and sicknesses continued at
other (out-of-state) sites of competition and medical care, including
all diagnostic tests (echocardiograms, EMG-NCV, MRI, and bone scans)
and speciality consultations.

Similarly, University of Cambridge expects students’ policies to cover
emergency medical care, dental care, optical care, loss of tuition fee
if a student is unable to continue studies, content insurance
(insurance for students’ belongings) etc.

Companies such as Reliance General insurance and Appollo Munich offer
cover medical expenses for intercollegiate sports injury as an add-on
cover.

While students have the option to avail themselves of insurance from
the university, it is better to take a policy from India, which is
more economical. Tarun Mathur, Co-founder and CBO, Policybazaar.com,
says, "Almost 70 percent of the plans accessible for understudies in India
cover all the requirements of the universities abroad.”

But students are a little concerned over whether their insurance
covers would be applicable in their universities; so the norm is for
them to buy a cover from India and then opt for one offered by the
university, which is usually expensive, says Tarun.

Claim procedure
If students have insurance from India, they will be worried over claim
settlement, particularly in case of medical emergency. Prominent
insurance players have tied up with a number of hospitals abroad.

So, in case of any hospitalisation, cashless facility can be availed
of at the network hospital. Generally, cashless facility is provided
by a third-party administrator (TPA) through the insurer on foreign
soil.

However, if you happen to be hospitalised in a non-network hospital,
the medical expenses will not be covered; the amount will be
reimbursed to the student’s account.

Thus, before selecting your insurance policy, check with your insurer
about network hospitals near the university you would be studying, to
avoid financial hassles.

In the case of non-medical covers, insurers make the reimbursement, once the
claim form along with required documents is submitted.

What to choose?
Policies are usually divided into two categories — worldwide,
including the US and Canada, and worldwide, excluding the two. As
policies are expensive in the US and Canada, this classification can
help you save on premiums.

At the time of selection, keep in mind the deductibles for each cover
(medical and non-medical) so as to avoid financial difficulties at the
time of claims.

You can choose from comprehensive policies for more protection and to
meet the standard requirements of the university. As for the frills,
use your discretion to sign up for whatever you consider an absolute
necessity.

 

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