This is an insurance plan that originated because of the high mileage covered by businessmen and common people alike. The idea is not new and originated early in the nineteenth century. With the industrial revolution, the mode of transport got better and better. Travelling across the globe was no longer an adventure but a normal day’s work. This excessive travel by road, by water or air also comprises of accidents and injuries and many a times, disability as well. To cater to any such losses, insurance companies came up with the idea of Accidental Travel Insurance. As the name suggests, this is the type of insurance that that offers covers in an event of an accident or a loss that might occur during travelling.
There are many companies which have got some very lucrative Accidental Travel Insurance plans. These companies target frequent travellers, especially the air travellers. On most of the cases the insurance plan is embedded in the ticket costs of an air journey.
However, this is not restricted to travel by air. Individuals can opt for Accidental Travel Insurance by approaching the insurance companies directly. The Accidental Travel Insurance premium amount depends on a lot many factors. First one would be the mileage covered per annum. The more a person travels, the higher are the chances of accidents occurring. Be it road, sea or air travel, it is the total distance and the frequency of the travel that is taken into account to calculate the risk factor. The more one travels, the higher will be the premium amount and vice versa. Then the other factor that affects the Accidental Travel Insurance plan premium will be any claims that you might have made in the past few years. The premium amount will be lesser if there are no claims and will be higher in case there have been claims made on the same grounds, which will automatically put such a customer in a high risk bracket. Hence the lesser the claims in the past, the lesser is the insurance premium amount. Some companies even give discounts on premiums in case claims have not been made in the past years.
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