Overseas student travel insurance policies to get bigger and better. Here’s how

Education advisers say overseas universities often advise students to buy insurance policies with more comprehensive terms and a wider network of cash-free hospitals and clinics in the host country. Meanwhile, Indian insurers believe that the reluctance to accept their policies is influenced by the university’s partnerships with local insurers in their respective countries.

Soon, students flying abroad to pursue studies overseas will be able to purchase new “enhanced” overseas travel insurance policies.

A few Indian insurance companies are in the process of redesigning their overseas student travel products to keep up with the times, especially after the Covid-19 pandemic, for those who aspire to fly to the US and the United Kingdom for further studies. According to insurance industry officials Moneycontrol spoken, these companies include Royal Sundaram and Tata-AIG General Insurance.

“A notable trend has emerged post-pandemic. Numerous universities in the United States and the United Kingdom have expressed concerns about the coverage provided in the Overseas student travel policies offered by Indian insurers. Recognizing these concerns, three prominent Indian general insurance companies are taking proactive steps to reevaluate and restructure their product offerings. This includes increasing medical evacuation coverage and offering higher sums assured at a lower premium,” says Manas Kapoor, Business Head – Travel Insurance, policybazaar.com. The plan is to introduce these updated products at the end of this year.

Also read: Why an international student travel insurance policy is a must for overseas students | Simply Save

Just in time for the April decisions

Royal Sundaram plans to have its products in place before April, which is when students receive confirmation to secure admissions and start scouting for travel insurance products.

“We are redesigning our overseas students travel insurance policies because some universities abroad often try to deny approval to covers purchased from India on one ground or the other. They have certain requirements – essentially larger covers – which we try to fulfill with our new products. For example, our coverage for repatriation of remains (an unfortunate event where the student dies and the body has to be brought back to India) is $10,000. However, many universities think it should be $50,000. We cover termination of pregnancy under maternity cover, but some universities say all expenses should be covered,” says Nikhil Apte, Chief Product Officer, Product Factory (Health), Royal Sundaram General Insurance.

He believes that the probability of such coverage being necessary is lower, but because of such requirements, students have to buy policies – which are typically more expensive – from local insurance companies with which the university has tied.

Also read: Why buying a student travel insurance plan is necessary for children studying abroad

Royal Sundaram will seek to offer a product that promises coverage of up to $1 million. “Now, some universities are also insisting on unlimited medical coverage, which will never be a reality in India. We already have student travel policies with sums insured up to $7.5 lakh. We intend to extend this to $1 million to satisfy the needs of the university,” adds Apte.

Most students fly in the months of June, July and August, before the fall season, to continue their courses. Purchase decisions about insurance are usually made in April. “Our effort is to work on the product in the next three months and have it ready before April. While the procedure of use and the schedule of the IRDAI has made the launch of the product relatively easier, we need to have the IT infrastructure in place and start training programs for channel partners before the launch,” he says.

Insurers are looking for newer distribution partners

The general insurance industry is also seeking to sign corporate agent agreements with overseas educational advisory institutes for greater access and acceptability among students and their universities. “For example, foreign education consulting companies like IDP. If it works, they can deal with several insurance partners at the time when the visa and admissions meet in April,” he says suitable

The education advisors put their weight behind the policies of the local insurers that the universities have tied up with. “These are group policies, made especially for the students of these universities. Although the Indian policies may be 10-15 percent cheaper than the covers recommended by the universities, the latter are more comprehensive. They offer a wider coverage and acceptance in the destination country and therefore we recommend students to stick to the safer alternative of university-related covers,” says Dhaval Mehta, Director and CEO, Globestar EduTech Pvt Ltd.

According to them, although the premiums of overseas travel insurance policies offered by Indian insurers will be cheaper, at the time of claim, your payments could be higher. “This is because of the limited non-cash network of hospitals and clinics to which Indian policies generally provide access,” says Rohan Ganeriwala, Co-founder and Director, Collegify, an education consulting firm. As a result, deductibles—the amount you have to shell out of your pocket before the insurer picks up the rest—are higher as you seek treatment at an out-of-network hospital or clinic.

“For example, say you incurred treatment expenses of $100. if you are covered by the insurance policy purchased through the university link, your deductible could be $20. In the case of an Indian insurance policy , your deductible can be as high as $50 or $60, since the clinic may not be in the insurer’s network without medical facilities money. If the medical center does not consider your policy valid, you can have to pay the whole bill yourself,” he adds.

Before taking a call, compare the premium rates and also the cashless network of hospitals and clinics. If your university gives no-hassle notice to overseas student plans purchased in India, you will get considerable savings. Not only does the overseas student travel policy cover medical expenses, but also passport or luggage loss, flight delays, missed connections, trip cancellation and so on.

“Overseas student travel policies have been designed keeping in mind the needs of most universities. They are suitable to meet the university’s coverage requirements. Some may have strict rules, but this it is not a very common phenomenon,” says Bhabatosh Mishra, Director, Claims, Underwriting and Product, Niva Bupa Health Insurance.