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August and September witness maximum student traffic to countries such as US, UK, Australia, New Zealand, and Singapore. The numbers could be as high as 1.5 lakh every year, say insurers. Besides the educational and financial details, these countries give equal importance to the insurance needs of prospective students. Some countries insist on overseas student insurance covers, while some don't.
It makes sense for every student to buy an insurance cover because of higher medical costs in these countries. Also, they should preferably buy an insurance cover in India to benefit from the lower costs.
Applying for student insurance:
It is mandatory for students applying for US and Australian Universities to apply for a student insurance. "Even Schengen countries insist on student insurance. In fact these universities ask students to apply for student insurance at the time of application to the University itself,' says TA Ramalingam, headunderwriting, Bajaj Allianz General Insurance.
Even if the university or country does not insist on insurance, it is advisable to buy a cover since the medical costs and healthcare expenses are much higher in developed countries than in India. For instance, a simple doctor consultation may cost anywhere between Rs 150 to Rs 300 in India. The same consultation visit will cost you anywhere between $250-300 in some countries abroad. Even if the hospitals follow a relatively standardised tariff structure in the US, there are still instances of overbilling, say insurers.
Buy a cover in india:
Undoubtedly, the covers available in India are no different from the ones available overseas. Insurers say overseas student insurance cover has been an evolving product. They say insurance companies get requests that vary with every university cycle. The insurance requirements of the universities keep changing and the Indian insurance companies are doing every bit to keep in line with the diverse insurance needs of the overseas universities. "Moreover, in India, it (student insurance) is available at 1/3rd of the cost in developed countries," says Neelesh Garg, executive director, ICICI Lombard.
"In developed countries, insurers work on fixed margins and the cost of capital is much higher, which pushes up the premium costs of insurance policies. Hence, it makes much more financial sense to buy a cover in India itself." Despite the cheaper covers available in India, students end up buying expensive insurance abroad merely out of ignorance, say insurers. Every university has its own requirements even when it comes to an insurance cover. "Every university website has a detailed form on insurance needs and all these universities offer insurance covers in tie-up with some company.
Hence, by default, when a student signs the application form, he signs up for the insurance form also without realising the premium differential between the developed countries and India," says Garg. Insurers say only 13,000-15,000 students buy an insurance cover in India. Most foreign universities waive off on-campus health insurance if you have comparable domestic insurance policies. Once you have the university's approval to take a cover in India, compare the coverage offered by various policies rather than simply opting for the cheapest one.
"Ideally you should visit the websites of the Universities, take down the requirements of the insurance policy and check with insurers in India."Once you identify the right cover, you should download an insurance waiver form, submit the form to the University and check with the University if the insurance policy matches their stipulated requirements," says Ramalingam.
Nature of cover:
Student insurance policies are a combination of travel insurance and health policies. Indian policies offer a blend of medical as well as non-medical covers, including cover of expenses on hospitalisation, loss of baggage, loss of passport and personal accident.
The annual premium for these policies could be anywhere between Rs 14,000 and Rs 18,000, depending on the riders chosen by the student. These policies can go a step further and cover certain health conditions not covered in the regular mediclaim policies.
"In developed countries, insurers work on fixed margins and the cost of capital is much higher, which pushes up the premium costs of insurance policies. Hence, it makes much more financial sense to buy a cover in India itself." Despite the cheaper covers available in India, students end up buying expensive insurance abroad merely out of ignorance, say insurers. Every university has its own requirements even when it comes to an insurance cover. "Every university website has a detailed form on insurance needs and all these universities offer insurance covers in tie-up with some company.
Hence, by default, when a student signs the application form, he signs up for the insurance form also without realising the premium differential between the developed countries and India," says Garg. Insurers say only 13,000-15,000 students buy an insurance cover in India. Most foreign universities waive off on-campus health insurance if you have comparable domestic insurance policies. Once you have the university's approval to take a cover in India, compare the coverage offered by various policies rather than simply opting for the cheapest one.
"Ideally you should visit the websites of the Universities, take down the requirements of the insurance policy and check with insurers in India."Once you identify the right cover, you should download an insurance waiver form, submit the form to the University and check with the University if the insurance policy matches their stipulated requirements," says Ramalingam.
Nature of cover:
Student insurance policies are a combination of travel insurance and health policies. Indian policies offer a blend of medical as well as non-medical covers, including cover of expenses on hospitalisation, loss of baggage, loss of passport and personal accident.
The annual premium for these policies could be anywhere between Rs 14,000 and Rs 18,000, depending on the riders chosen by the student. These policies can go a step further and cover certain health conditions not covered in the regular mediclaim policies.
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