Insurance with a deductible in tourism assumes that the client, in the event of an insured event, partially pays for it from his own funds. This type allows you to save money when concluding a contract. The profitability depends on the type of franchise.
One of the important points of the insurance contract is the deductible. This is a special agreement between the insurer and the client that the latter takes on a certain part of the losses. The amount is always fixed. The tourist can pay for it himself when an insured event occurs.
Thanks to this item, insurance can come out 20-40% cheaper. This significant cost reduction is due to the fact that with a franchise, both parties remain profitable. It gives insurers the opportunity to reduce losses and the frequency of calls, tourists - to save on insurance.
In the event of an insured event, you pay the amount specified in the contract, and the company bears only the remaining costs. On the one hand, this simplifies the procedures, but on the other hand, it can lead to situations when prices for services increase sharply, and one cannot count on full payment for insurance. In most cases, the amount does not exceed $ 3 for medical insurance, or can go up to 15% of the tour price. The last option is assigned with cancellation insurance.
Franchise types
There are three main types:
- unconditional;
- conditional;
- dynamic.
An unconditional deductible involves self-payment of a small part of the cost of treatment. This means that with an unconditional deductible of $ 100, you need to pay this amount of money, regardless of the cost of the services received. This view is considered one of the most disadvantageous for a tourist. Therefore, the cost of such insurance is the lowest.
The conditional form allows you not to pay for services at all out of your pocket if the cost of the insured event exceeds the amount of the deductible. You can clearly see the features of the action of such insurance using an example. With medical insurance designation in the clause of the contract at $ 100, treatment in the amount of $ 101 to $ 50 thousand will be paid in full. This variety is beneficial to all parties and is popular.
Dynamic differs in that it is non-fixed, it is in percentage. Usually, with the onset of each subsequent insured event, the amount of payments for it decreases more.
Advantages and disadvantages
The advantages include not only the financial benefit by reducing the fee, but also time savings. If the damage from the insured event is minimal, you will not need to spend time interacting with the company or filling out unnecessary documents. Some insurance companies give you the opportunity to get a discount on your insurance policy. It can be comparable to the size of the franchise itself.
The disadvantages include:
- the need to pay part of the amount in the event of an insured event in tourism;
- the complexity of determining the most profitable type of franchise, taking into account individual characteristics;
- in some cases, the need to draw up a comprehensive insurance contract.
Subtleties
In tourism, the described type of insurance is popular when receiving medical services, drawing up a CASCO and civil liability insurance contract. Sometimes it is registered for property that a tourist takes with him on a trip.
As in the case of a regular insurance contract, there are situations that require the full payment of the tourist's services. Such situations include injuries sustained when committing illegal actions or in a state of narcotic, alcoholic intoxication.
You cannot use your new right when attempting suicide or when a chronic or mental illness worsens. The insurance firm may include other cases for which insurance will not be paid.
Thus, insurance with a deductible is similar to a deposit, which you can use only if you pay a certain amount when buying a voucher. It is often used by those who believe that the insured event will not arise during the trip. It is offered to issue it when traveling to Egypt, Turkey, Thailand and other tourist countries. The terms of the franchise differ from each other depending on the specifics of the work of the insurance company.
