Travelling across the world can be a thrilling experience. Things might not always go according to plan but it makes a great memory in the end. Part of the experience is keeping in mind how you could potentially save thousands of dirhams in the process if your credit card offers you a travel insurance coverage. Other than the fact that this benefit will help you keep your pockets heavy, in the unfortunate event that a travel accident occurs, you can rest assured that you will be covered medically as well against risks of illness or disease.

Different Types of Credit Card Travel Insurance Coverage Explained

Consumers can expect the terms of their credit card travel insurance to vary from a bank to another. Their coverage amounts will as depending on their choice of credit card. Across most banks in the UAE there are 4 main categories of coverage offered :

Travel Accident Coverage

Travel accident insurance is the equivalent of life insurance in the event of traveling.In the unfortunate case an accident causes death, the credit card Issuer will provide a financial reimbursement and support to the legal beneficiaries. Be it a car, train, plane or ferry trip, if the credit card includes a travel accident policy, the card owner and beneficiaries will be eligible for this coverage in the case of serious injury or death. The amount of money this benefit can payout will typically vary. Based on our database of banks in the UAE, the travel accident coverage amounts offered are between AED 150,000 and AED 3,500,000. This policy most commonly excludes privately owned transportation such privately operated vehicles or plane jets which are not which are not available to the general public.

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Luggage Coverage

If your credit card provides lost luggage insurance, you will be covered up to a certain amount of money for the loss or damage on carry-on or checked in baggage. The limits on this benefit can go up to AED 7000 on standard credit cards and an AED 100,000 on elite credit cards per person for every trip. In certain cases, separate limits are placed on special items, such as jewelry and electronics.

For example, if you are entitled to AED 2000 per insured person for every trip on items like jewelry, watches, cameras, video recorders, and other electronic equipment. Your reimbursement will be equal to the replacement value of the items lost or damaged, up to the maximum payout amount. That means if the covered items you lost were valued at AED 1500, and your maximum payout amount is AED 2000, you will receive just the AED 1500. If you lost AED 300 worth of items, in that same scenario, you would be eligible to receive just AED 2000 but not more. In certain cases, your card may also cover damages that result from your bags being delayed – over vitally important items only in most cases. Items such as your toothbrush, mobile, or even your iPod may often not be included in this.

Trip Cancellation/Delay Coverage

The Elite type of travel insurance provided by credit cards protects travelers against damages resulting from trip cancellation or delay. For instance, if your flight is canceled by the air carrier as a result of bad weather conditions, or if you miss a non-refundable flight due to a reason under the coverage, you may be eligible to receive money back through your card company.This coverage will commonly only reimburse you for the cost of the flight you miss. Any further damages or misfortune that results from the delay or cancellation , such as missing out on a hotel reservation in the process may not be covered however this is subject to consideration and  decided on a case to case basis. Some premium credit cards do offer limited covered for this type of loss, though the limit allocated for this kind of cover is kept at minimal limits.

Legal Emergencies Coverage

Most cards cover the cost of Medical bills which include but are not limited to the transportation to legal help or emergency evacuation. Legal instances can be anything from recovering your lost passport or travel documents to needing to pay for the expenses of re-issuing these documents.In the case that the prior is not covered credit card issuers will assist the cardholder in locating legal help and taking responsibility of the cost of delivery (but not the payment of service).