Many foregin countries do not have a National Health Service (like we do in Great Britain) that pays for medical treatment, so if you require medical treatment while abroad it has to be paid for by the individual receiving the treatment rather than by tax payers. This is just one of the reasons why holiday insurance or travel insurance is so important. If you travel throughout the year, it may be worth condidering an annual travel policy.
This depends on the exact terms and conditions of your particular travel insurance policy, but generally it includes:
Cancellation of, or cutting short, your holiday. For example, holiday insurance may cover cancellation of your holiday due to the tsunami, earthquake etc.
Delayed or missed connection(s)
Loss or theft of your belongings while you are away
Third party liability
In common with other insurance products, there are a number of different types of holiday insurance policy, these include:
Whilst it is not currently compulsary to have travel insurance, it is highly recommended to have a holiday insurance policy in place when travelling abroad.
Single trip travel insurance usually covers the items listsed above (under the heading What does holiday or travel insurance cover) such as a stolen purse or wallet, an accident or an illness whilst you are away, and damaged or lost luggage.
If you travel more than once a year it may be worth considering an annual travel insurance policy as it will often be cheaper than paying for single trip travel insurance each time you travel. It also means that there is no need to arrange cover for each journey you take. Although most annual or multi trip travel policies allow you to travel as many times as you wish each year, there may be a limit on the length of each trip.
It will probably be possible to cover the whole family under the annual travel insurance policy too, which may save a great deal of money compared with insuring each person under a seperate policy.
Other types of travel insurance include, but are not limited to winter sports travel insurance, backpacker travel insurance, over 65 holiday insurance and sporting holiday insurance.