It never hurts to be prepared for uncertainty. If you're planning a foreign trip abroad, a travel insurance policy which covers risks such as illness or accidents even losses on account of flight delays is the best thing you can do for yourself.

The four state insurers offer standard covers under the Overseas Medical Policy (earlier referred to as Videsh Yatra Mitra Policy).

In addition to that, there are also private players such as Bajaj Allianz, Tata AIG and even travel agency Thomas Cook which have different plans to choose from.

The policy offered by New India, United India, National and Oriental Insurance covers personal accidents, medical expenses and repatriation, loss of checked baggage, delay of checked baggage, loss of passport and personal or third-party liability.

The cover is available for a sum assured ranging from $50,000 to $5,00,000, depending on the scheme and the inclusion or exclusion of travel in the US or Canada.

The minimum sum assured and premium rates differ if the US and Canada are included in the itinerary since the insurance rules differ in these countries.

Travel premiums, calculated on the basis of age and the duration of stay, are given on a trip-to-trip basis. If your one- to 14-day trip abroad excludes the US and Canada, you can take a policy with a sum assured of $50,000.

For this, the premium you fork out, if you're between six months and 40 years of age, is Rs 621 (the premium plus an 8 per cent service tax).

Service tax rates have been revised from last year's 5 per cent to the current 8 per cent this year.

If your business trip includes the US or Canada, be prepared to pay more for the same parameters of age and duration. For one, the minimum sum assured is higher at $1,00,000 and the premium you end up paying is Rs 1,129.

In comparison, Bajaj Allianz and Tata AIG's policies also offer a cover for delay of baggage, loss of passport and personal liability. Each of the players has two or three plans on offer having certain inclusions.

For instance, under Tata AIG's plan A, the cover for baggage loss is not included. So check to make sure you get a policy that suits your needs. The policies also include emergency evacuation, repatriation of remains and a $10,000 limit for accidental death and dismemberment.

The premium for a sum assured of $50,000 if you are below 40, not travelling to the US, for a 14-day trip works out to Rs 671, including the service tax and Rs 1,040 if you include the US.

Players such as Bajaj Allianz allow the policy for 45 days with a maximum limit up to 180 days of travel and stay in a year.

Your call

Why travel insurance? Apart from the fact that it will cover you in contingencies, in some countries -- especially Europe -- insurance is a must before the visa is issued.

If you look around, you may get a few additional benefits at a slightly higher price. All players also offer group policies to cover your family, employees and students as well. Read the fine print regarding the terms, conditions and eligibility.

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