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Travel Insurance by LICs

Life insurance companies (LICs) have recently entered the compulsory travel insurance market. This class usually belonged to general insurance companies. The market is small, and the more offers there are, the more choice the service recipients have. As of March 1, the volume of insurance premiums of people traveling abroad exceeded 554.1 million tenge. The share of this insurance class in the total market was about 0.3%. The payments exceeded 46.7 million tenge.
Travel Insurance by LICs

Travel insurance is a mandatory type of insurance in our country. People do not buy it directly from LICs, compulsory insurance is provided by travel agencies. It covers risks such as accidents and certain illnesses. It is worth noting that for crossing the borders of many countries, a tourist policy is a prerequisite. A travel insurance policy can protect against many unforeseen circumstances during your trip.

Insurance policy for people traveling abroad is necessary for the following:

  • Visa documents;
  • Crossing the border of the Republic of Kazakhstan;
  • Reducing travel expenses in the event of accident;
  • Relaxing vacation.

“Firstly, travel insurance protects against unexpected medical costs due to injury or illness, lost luggage, trip cancellations and other unexpected situations that may arise during travel. This may include payment for medical treatment, hospitalization, medications, and other expenses. Secondly, it is a psychological comfort. Knowing that you are covered by insurance, you can feel confident and calm during the trip, and just enjoy your vacation. Thirdly, thanks to the policy, the tourist receives round-the-clock support to solve problems on the trip,” explains Oleg Khanin, Chairman of the Board of LIC Kommesk-Omir.

A standard policy of many insurance companies includes the following coverage:

• emergency outpatient or inpatient care;

• emergency dental care in case of tooth trauma as a result of an accident or acute inflammation of the tooth and its surrounding tissues;

• medical transportation or evacuation;

• expenses on prescribed drugs;

• organization of a visit by a third party in an emergency;

• early return of children in case of hospitalization of the insured;

• communication costs for emergency messages and medical information;

expenses for posthumous repatriation.

“Most general insurance companies offer additional insurance of luggage and flights in case of flight delay. All options are added to the main contract. Travel insurance under the Life-Road program provided by our Company protects tourists from unforeseen expenses while traveling locally and abroad. You must admit that it is much more beneficial to buy an insurance policy than to pay for doctor's appointment, medicines and other medical treatment costs when the need suddenly arises. Besides, insurance policy is often a mandatory document for visa and legal stay on the territory of some foreign countries,” comments Zhanar Zhubaniyazova, Chairman of the Board of LIC Halyk-Life.

The following points should be brought to notice when getting such a policy:

- validity period - the longer it is, the more expensive the insurance policy is;

- number of covered insured events - an extended insurance program is always more expensive than the basic one;

- number of host countries - the more countries, the higher the cost of the insurance policy;

- size of insurance benefit;

- deductible - the larger the deductible, the lower the price of the insurance policy.

“First of all, travel insurance helps solve financial problems and reduce the burden on the personal budget if something unforeseen happens to a tourist in another country. Usually, in case of an insured event, LIC clients contact an international assistance service that organizes the service in country the tourist is staying at, the contacts are usually on the insurance company’s website or are given along with a memo to the tourist. Assistance provides round-the-clock help to tourists. You can make a call to the phone number of call center given on the insurance company’s website, or send a message in your personal account,” notes Azamat Yerdessov, Chairman of the Board of LIC Freedom Finance Life.

What is franchise?

The franchise provides for the release of the insurer from compensation for damage not exceeding a certain amount. In simple terms, it is the part of funds that the insurance company does not reimburse you. If the insurer does not compensate for the damage, why include this option in the contract, you might think, but the franchise has a number of advantages for the insured.

There are several types of insurance franchise:

- Straight deductible: the amount of money not exceeding the amount specified by the insurance agreement, which is deducted from the insurance benefit. The insurance payment is made minus the straight deductible specified in the contract.

- Conditional franchise: LIC has the right not to pay for the damage caused if the amount of payment from the company is less than the amount of the established deductible. However, if the amount of payment is more than the deductible, the insurers cover the damage in full.

- Time deductible (waiting period) is a period of time from the start of the insurance coverage, during which LIC is exempt from compensation for damage.

Photos are from open sources.

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