A travel insurance is an insurance that is purchased by travellers, which covers certain losses or costs and medical expenses that are not covered by regular medical insurance.

Travel insurances can usually be arranged at the time of booking of a trip to cover exactly the duration of that trip or a more extensive, continuous insurance can be purchased from (most often) insurance companies or banks, which covers all travelling during the period for which the insurance was obtained.

The most common costs that are covered by travel insurances are:

• trip cancellation
• trip interruption
• travel delay
• baggage and personal effects
• baggage delay
• emergency evacuation
• travellers assistance
• medical expense

History of Travel Insurance

Since 1687 when Edward Lloyd opened an English coffee house (creatively named Lloyd’s of London) and began brokering insurance to merchants importing goods from the American colonies, people have purchased insurance to protect themselves from risk. In post-9/11 America, no insurance sector has experienced greater popularity than travel insurance. Prior to the attacks on the World Trade Center, fewer than 10% of Americans purchased travel insurance. Today, by some estimates, over 30% purchase a risk mitigation product prior to departure. The question is: despite their growing popularity, how good are these products at protecting us from the risks we face when traveling? Given the remote locations frequented by adventure travellers and the sometime risky activities they participate in, this question is particularly relevant for adventure travellers and tour operators alike.

Travel Insurance - Tips from AFTA

Don't leave photographic equipment, mobile phones, personal computers or other valuables unattended, or in a vehicle at any time. Rental cars in particular are clear targets for thieves.

Prepare physically for your trip.
If you are heading for a high altitude destination, some exercise is called for. Even carrying heavy luggage can be a problem if you are not accustomed to this type of exertion. Take particular care, especially if you are elderly or have a medical condition and may be affected by a stressful schedule or a change in diet. Delayed or rescheduled flights can disrupt holiday plans. Reconfirm travel arrangements well in advance to ensure that you don't miss your flight, or to utilise any extra time allowed.

Can you prove what you purchased?
Your travel insurance cover starts as soon as you leave home for your journey. Make sure you keep proof of ownership of any goods purchased, such as a duty free camera, and keep the receipt separate from the goods. This will make any claim much easier to document and make it easier for the insurance company to pay your claim. Remember you will need to prove any claim against your Travel Insurance Policy. In most cases this will mean showing how and/or why a disrupting event occurred and being able to supply verification of the value of the claim.

Travel insurers require "reasonable" proof of loss and of the events leading up to them. So if your camera is lost or stolen in a small village in the Pyrenees you must report the loss to the local police and obtain a police report. It is much easier to get this report at the time rather than waiting until you return to Australia.

It is up to you to look after your belongings. Insurance companies will not cover loss where travellers have not taken "responsible" steps to protect their property. For example when you are making a telephone call from an airport or railway station, make sure your baggage is beside you and is in sight at all times.