Student insurance plans: article

Student insurance plans



It was around midnight but the Verma family was awake. The rising tension and anticipation in the room was not because they were watching a movie but were waiting for the phone to ring. While, Mrs Verma almost appeared to be on the verge of tears, her husband stared in blank dismay. Six months ago, their only son, Anuj, had left for New York to pursue an MBA course.

The previous evening, news reached them that Anuj had met with an accident. Since then, the family had not slept. After a painful hour of waiting the phone rang. Anuj reassured his mother that it’s now all well and then had a long chat with his father. Later at night, when Mrs Verma finally slept, her husband took out a calculator and pondered over what Anuj had said.

Anuj had told his father about the medical expenses and how he had to pay them before being discharged. It was not until late afternoon, the next day when Mr Verma realised that in a hurry to leave the India, Anuj had completely missed on signing up for a student insurance policy. “This happens quite often,” says Ashish Kapur, CEO, Invest Shoppe India. “Nearly 100,000 students from India travel every year to study abroad, but less than 10 % of them buy an overseas travel insurance plan,” he adds.

Increasingly, with low interest rates on student loans, foreign education is no longer the privilege of just rich people. Last year, the US issued 26,000 student visas to Indians, showing an increase of 30 % over the number of visas issued in 2005.

Considering the increasing student out-bound traffic, several Indian insurance companies have come up with different student insurance plans. The insurance policies primarily cover students against any kind of accidents besides other benefits. But signing up for the policy is not enough, choosing the correct plan requires some assessment.

Today, there are policies such as student safety insurance, overseas mediclaim for students and even tailor-made cover for educational institutions offering package cover for students. “While opting for an insurance plan, students should check whether the insurance is valid in that particular university or not. Generally insurance from companies who have worldwide presence are valid at all universities,” says Shreeraj Deshpande, head, health and travel Insurance, Bajaj Allianz General Insurance.

Students when travelling overseas generally look for coverage of health, loss of passport and any other liability cover. They can also ask for cover for loss of books and clothing. “Besides checking the insurance company’s tie-up with hospitals near the student’s location and the reach of third party service providers, one should also keep in mind the different add-on covers that are available, such as coverage of attendant’s visit to the student in case of any medical emergency,“ says an official from New India.

A student insurance policy should cover the entire period of the study term and the coverage should be according to the risks they would undergo while at a foreign location. Students, however, have the option to choose the period and should opt for a plan according to their period of stay.

Some universities, however, insist that the students should opt for proper medical coverage through local agencies. Many universities also add insurance in their tuition fee, which includes drug addiction protection and pregnancy protection. “Taking insurance cover from an Indian company for a medical liability cover of $250k will be at a per month premium of $30. Similar insurance cover of $250k is typically available at higher premium of $45-60 abroad. Further there are other travel related benefits bundled into Indian policies such as passport loss and baggage loss,” reasons Sudipto Ghosh, manager, advisory services, KPMG.

To settle a claim is not difficult provided you have the right documents. Most of the insurance companies have tie-ups with international agencies/service providers who are involved in processing the claims. The insurance company pays a premium to these agencies for rendering these services.

When the policy is issued, the contact details of these agencies are mentioned which helps the students in case there is a need to raise a claim. “Not being aware of the policy terms and conditions, coverage, exclusions and ignorance about the details of the service provider often leads to students facing undue hassles,” says the official from New India.

All the necessary claim forms detailing the procedures are being given along with policy documents. Typically the necessary documents required are — Duly completed and signed claim form, policy copy and air ticket jacket / boarding pass.

At home, Mr Verma was pondering over discontinuing his fixed deposit account. This situation could have been avoided, if only Anuj was a bit more alert. After all insurance, at home or abroad, is not only a matter of choice but necessity as well.



source: ET


Regards,

Priyanka