Corporate Travel Insurance : A Complete Guide

Businesses are going global. Geographical boundaries are no longer impediments in expanding businesses. Organisations are increasingly finding lucrative opportunities overseas and are making international alliances to advance their businesses and grow them. As such, corporate employees are increasingly making foreign trips to garner business and maintain relations with existing clients. Even in a business trip, there are chances of facing contingencies, especially if the trip is international. The employee might fall sick or face an accident and require hospital treatments. Trip delays can result in extra financial costs. In any such contingency, the financial impact is felt by the business entity. Since the employee is on a business trip, the financial burden shifts to the organisation which has to shell out the incurred extra expenses. This might prove financially straining for the organisation and hamper its productivity. What should the organisation do in such cases?

The answer is simple – a corporate travel insurance plan

Yes, a corporate travel plan provides financial assistance in case of uncertain eventualities faced by an employee on a business trip. A company can buy this plan and secure its finances. Let’s understand the plan in details –

What is corporate travel insurance?

A corporate travel policy is a travel insurance policy which is bought by business organisations. This policy covers named employees for any contingencies which they might face when they are on a business trip. The policy provides medical coverage as well as coverage for other contingencies which are commonly faced on a business trip.

Features of the policy

A corporate travel insurance plan has various salient features which differentiates it from the other type of travel insurance plans available in the market. These features are as follows –

The policy covers named employees. While buying the plan, the company should mention the employees which it wishes to cover under the corporate travel plan. Employees who are frequent travellers are usually covered under such plans.
The policy is, usually, issued as an annual multi-trip policy. Unlimited trips taken during the year are covered under the plan without the hassle of regularly buying a separate policy.
The employer or the organisation is the policyholder while the named employees are the insured
Separate policies are available for covering domestic and international trips. There are domestic policies as well as overseas corporate travel insurance policies
Premiums are paid by the business entity itself since the policy is meant to secure the finances of the company
There is a maximum limit on one single trip taken by the insured employee. Though unlimited trips can be taken in one year, a single trip cannot exceed more than a specified tenure. This tenure might be 60 days to 180 days.
Add-on covers are also available under the plan at an additional premium. The company can choose the relevant extensions by paying the required additional premium
For continuous cover the company can renew the policy every year
Premium of the policy depends on the number of employees covered, the sum insured and area of coverage. If extensions are chosen the premium would increase.

Coverage available under the plan

In terms of coverage, a corporate travel policy provides all the necessary coverage features which protect your business trip. The following coverage features are inbuilt in most corporate travel plans –

Coverage for medical emergencies – it is not uncommon for travelling employees to encounter medical emergencies on their business trips. They might develop an infection or the weather might not suit them or they might be involved in an accident. Such situations give rise to medical emergencies which incur substantial costs. A corporate travel plan covers these medical emergencies. The plan might also pay for medical evacuation or repatriation under certain conditions.
Baggage loss and delay – the plan also covers the expenses incurred by the employee if the checked-in baggage is lost or delayed.
Loss of passport – expenses incurred in arranging for a duplicate passport if the original one is lost while travelling is covered under the plan
Personal accident cover – under this cover, accidental deaths and disablements are covered by the plan. If the employee is involved in an accident and dies or becomes permanently disabled, the plan pays a financial compensation to the employee or his family
Legal liability cover – if the employee, unknowingly, causes harm to any third party or property, he might be held financially liable for the loss caused. In such cases, there arises a financial liability which is covered by the travel insurance plan
Trip interruption or cancellation – coverage is also given if the trip is interrupted or cancelled due to unavoidable circumstances. The plan pays for the advance booking expenses incurred which are non-refundable and also expenses incurred for any changed bookings.
Flight delay or missed connection – if the flight is delayed and expenses are incurred due to such delays, coverage is available. Moreover, missed flight connections are also covered by the plan.

Extensions available

Besides the above-mentioned features which are more or less inbuilt in the plan, there are extensions available too which make the plan more comprehensive. The following extensions are found in most corporate travel plans –

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

There are many instances which are excluded from the scope of coverage of a corporate travel plan. Here are some of them which you would ordinarily come across –

Pre-existing illnesses – if the employee who is travelling suffers from pre-existing illnesses and faces a medical emergency due to such illnesses, such emergencies would not be covered by 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.

Key benefits of corporate travel plans

Businesses prefer insuring their employees under corporate travel plans because of the benefits the plan provide. Here are some key benefits which you would find with these plans –

The overseas corporate travel insurance policy provides extensive coverage which can be further enhanced through available extensions. As such, it provides a sense of financial security to the business organisation and also to the employee in case of any mishaps faced during a business trip
Corporate travel insurance policies pay the financial expenses incurred with unforeseen circumstances incurred on a trip. They, thus, spare businesses the financial trouble
In some countries (Schengen countries) having an overseas corporate travel insurance policy is mandatory for travelling employees

Buying corporate travel insurance in India

Organisations who wish to buy a corporate travel plan can approach insurance companies offering such plans and buy a plan which is suitable. To find the most suitable plan, the best method is to compare. A lot of insurers offer corporate travel insurance in India. Each plan has a different set of coverage features, allow different sum insured levels and come with a different premium rate. Thus, to buy the best plan you should compare the list of available plans and make a choice. Comparing would allow you to find out the possible coverage features available in all plans, their comparative premium rates and the sum insured allowed. You can assess your requirements and then buy a plan which suits your requirements. Your company should be registered in India and the covered employees should be Indian residents for you to buy a plan and cover your employees.

Claim process

Making a claim in your corporate travel plan is easy. You just have to inform the insurance company whether it is travel policy or health insurance policy of the covered contingency and the company would guide you with the claim process. You would be asked to contact the company’s international service provider for arranging for claim services. You can yourself contact the company’s tied-up service providers and arrange for claim settlement. Taking the help of a reputed broker also eases the entire claim process as the broker helps in getting your claim settled easily and quickly through its knowledge and experience.

If your company has international or domestic businesses spread over different locations and your employees often travel for business purposes, a corporate travel plan is a wise choice. It would cover all possible trip-related contingencies and spare you any financial nightmare.