Global boundaries do not impede global aspirations of businesses and their function. Lucrative overseas opportunities have increased the number of corporate travellers in India. These people on the move have lined-up meetings and events for the limited time they are travelling. Hence, travel contingencies need to be handled expertly, quickly and with minimum loss of time or money to the organization, and therein comes the role of Corporate Travel Insurance policy or plan.
A corporate travel policy is bought by business organisations. It covers named employees for any contingencies which they might face when they are on a business trip. The policy provides medical coverage, other travel related issues, missed flights or lost baggage, etc. and other contingencies a corporate traveller is likely to face.
The salient features of a corporate travel insurance plan are:
- It covers named employees. Only employees named by the organization are covered by the plan. It is a good idea to add names of permanent and frequent travellers to the list.
- Usually, issued as an annual multi-trip policy. Unlimited trips taken during the policy year are covered under the plan. Organizations no longer must buy a new policy whenever an employee travels.
- Employer is the policyholder. The employer or the organisation is the policyholder while the named employees are the insured.
- Separate policies available. Policyholders can buy separate corporate travel insurance policies for covering domestic and international trips.
- Premium paid by policyholder. Premiums are to be paid by the organization as it is designed to secure finances and resources of a business entity.
- Time limits placed for each trip. = Though unlimited trips can be taken in one policy year, a single trip cannot exceed a specified tenure. This tenure can vary from 60 days to 180 days.
- Premium depend on employees covered. The number of employees covered under the premium determines the premium to be charged, the sum insured and area of coverage.
- Add-on covers are available. A policyholder can pay additional premium for add-on coverage and extensions.
- Renewal is necessary. For continuous cover, the company is expected to renew the policy every year.
- Available only for Indian companies and employees. When buying corporate travel insurance in India, remember they are available for India-registered companies and employees who are residents of India.
The following coverage features are usually available under corporate travel plans:
- Coverage for medical emergencies - Travelling employees may face medical emergencies and a corporate travel plan can cover emergencies such as infections, accidents, etc. It may include medical evacuation or repatriation under certain conditions.
- Baggage loss and delay - Expenses incurred if the checked-in baggage is lost or delayed is covered.
- Loss of passport - Loss of a passport can be distressing, but a corporate travel plan covers the expenses incurred in arranging for a duplicate one.
- Personal accident cover - Accidental deaths and disablements are covered by the plan. In such cases, financial compensation to the employee or his family is covered.
- Legal liability cover - if the employee, unknowingly or accidental, causes harm to any third party or property, he can be held financially liable for the loss caused. In such cases, the financial liability is covered by the travel insurance plan.
- Trip interruption or cancellation - Expenses incurred for cancelled or interrupted trips due to unavoidable circumstances including advanced or changed booking expenses are covered.
Flight delay or missed connection - Expenses for last-minute flights due to delayed or missed connections are covered by the plan. Extensions available.
A corporate travel insurance plan can be made more comprehensive with available extensions:
- Dental treatment cost incurred due to accidental hospitalisation
- Loss of personal belongings
- Loss of expensive and important belongings like laptop, mobile phones, business documents, etc.
- Funeral expenses incurred at an international location
- Loss of travel documents
- Hijack distress allowance
- Losses incurred due to robbery and theft
- Maternity related expenses incurred in the first trimester
Exclusions from a corporate travel plan's scope of coverage may extend to:
- Pre-existing illnesses - Complications and medical assistance arising for a pre-existing condition are not covered under the plan.
- Self-inflicted injuries or death - If the insured employee inflicts injuries to self or commits suicide, the plan coverage would be excluded
- Deliberate or voluntary exposure to perils - if the insured employee exposes himself to perils, knowingly or carelessly, the consequent claims would not be covered by the plan
- Participation in criminal acts - the insured's participation in acts of criminal nature are specifically excluded under the plan
- Loss of passport under special circumstances - though loss of passport is covered under corporate travel plans, there are certain conditions under which this cover is not available. If the passport has been confiscated by custom or police officials or if the loss is not reported to the police, the loss would not be covered
- Participation in adventure sports - if the employee participates in adventure sports or any other hazardous activities, coverage would not be available for medical contingencies incurred as a consequence to such activities.
Businesses prefer insuring their employees under overseas corporate travel insurance policy because of the following key benefits:
- The coverage can be enhanced with available extensions to increase security to an employee in case of any mishaps =
- Expenses occurring due to unforeseen circumstances are covered
- In some countries (Schengen countries) the policy is mandatory for travelling employees
Read More: Importance of Group Travel insurance for Organizations
All leading insurance companies in India offer Corporate Travel Insurance Policies to meet the varied demands of the corporate traveller. The best way to buy a plan is to first understand the travel behaviour within the organization, and then compare the different policies available. Visit the Corporate Travel Insurance Policy page at Paybima to know the different kinds of policies available, the covers, the premiums charged, the extensions and exclusions, to know which one fits your unique needs.
Making a claim in your corporate travel insurance plan is easy.
Step 1 - Inform the insurance company of the covered contingency and the company would guide you with the claim process.
Step 2 - Contact the company's international service provider or partner for arranging for claim services.
Alternatively, take the help of a reputed broker to ease the process. Choose a broker with knowledge and experience, as they can help with quicker responses when the need arises.
If your company's employees often travel for business purposes, a corporate travel plan is a wise choice. It would cover all possible trip-related contingencies and spare a financial nightmare, should an emergency arise.