Travelling can be one of the most relaxing and stress-relieving activities for most of us. Suppose you are already planning for your next vacation abroad. In that case, you probably must have considered some of the technical yet essential aspects, like whether your destination allows visas on arrival for Indians, whether there are any specific laws to consider, whether travel insurance is mandatory, etc.
When travelling overseas, you might be alien to the visiting country’s law, and if you end up in a difficult situation. It may be a situation wherein you are part of an accident which caused bodily and property damage to the third party in the visiting country. This is when a correct and comprehensive travel insurance plan with personal liability coverage would come to your rescue.
What is Personal Liability?
Personal liability is a situation wherein you are held accountable for an accident that causes damage, loss or harm to another party. That is, if your act, even if it is unintentional, causes loss or damage, you are held responsible for it. Hence, the legal obligation becomes a personal liability. This liability even extends to bodily injury or harm.
For example, if your kid breaks your neighbour’s window pane while playing or you accidentally bang your car against another.
What is Personal Liability Coverage in Travel Insurance?
Since you are travelling to a different country, it is very likely that you are unaware of the laws of the land and end up in debt or even in formal custody for some reason. It could be very stressful on your international trip if a third party accuses you of any damage or loss in a stranger’s land.
Hence, buying travel insurance with personal liability provisions would be best before embarking on a journey abroad. With a comprehensive travel policy, it would be easier to mitigate the allegations of personal liability charges as your travel insurance provider would be your representative to get you out of the crisis.
Travel insurance with personal liability covers the following:
- Damage caused to a third party’s property in a foreign country while on a trip
- Damage caused to a third party’s vehicle while you are driving
- Legal costs like hiring of attorneys, claim settlement etc. However, this depends on the coverage offered by your travel insurance provider.
- Third-party medical expenses related to the damage caused
- Depending on the coverage, some plans may even offer accidental death benefits to a third party.
The travel policy covers only the policyholder; thus, your family members or other individuals travelling with you are not covered unless you purchase a cover for them.
How Does Personal Liability Work Under Travel Insurance?
Many insurance providers like Tata AIG offer personal liability as a part of their international travel insurance plans. Some insurers offer this cover as an add-on to your base policy at a small premium increment. When you buy travel insurance with personal liability coverage, the insurance company pays for the maximum amount specified for the loss due to damage or injury during the trip.
Firstly, inform your insurer immediately if a third party makes a personal liability claim against you.
Next, allow your insurer to guide you with the formal proceedings, necessary paperwork and relevant authorities. What you can do best is cooperate with them at every step to resolve the issue at the earliest.
Difference Between Travel Insurance and Personal Accident Insurance
The thought of meeting with an accident and not being financially sound to cover medical expenses can put you in a difficult situation. Personal accident insurance covers the hospitalisation expenses if you encounter an accident leading to injury, disability or even death. In case of the policyholder’s death due to the accident, a death benefit is given to the beneficiary.
Medical emergencies, including accidents, are covered in comprehensive travel insurance plans in India. So, buying online travel insurance can keep you safeguarded if you fall ill or meet with an accident anytime during your journey.
Conclusion
Personal liability coverage in travel insurance is an important feature that can help you during a crisis. However, you must remember that this cover benefits you if the third-party claims against you are baseless and you did not maliciously damage or cause any loss to them.
Moreover, suppose you plan to travel to an expensive country where legal assistance is expensive. In that case, your travel insurance with personal liability cover will guard you against these unexpected losses.