Students going overseas for studies need to have an
insurance cover. And the good information is that purchasing the cover in India, if the country or the university allows you to do so, is a cheaper option.
In countries like Canada and New Zealand, universities themselves offer cover to their students. In fact, the cover is integrated in the tuition fees. These universities do not accept insurance purchased by a student in his\her home country. But one can buy an additional cover from India, too.
“The university may not permission that insurance purchased by a student provide coverage in these areas. But, such additional coverage is helpful. For instance, coverage for medical expenses connected to mental disorders may be useful if a student suffers from depression or stress and needs medical aid,” says T A Ramalingam, head-underwriting, Bajaj Allianz General Insurance.
Universities in the US and the UK are more elastic and allow students to buy insurance from their home country, provided it satisfies the requirements of the university. Rasika Iyer, set to travel to the UK this September for her higher education, seems converted by the logic. As she puts it, “After expenses a huge amount for my studies in the UK, a little extra expense to cover medical emergencies seems worth it.”
The policies offered by Indian companies like
Tata AIG,
Bajaj Allianz and ICICI Lombard are received by most universities in the US. Even if purchasing university insurance is required, students usually prefer to take an additional policy from India.
It makes sense to do so, say financial planners. “A major segment of the insurance offered for students covers medical costs. This is a big benefit if you think how expensive medical treatment is outside India,” says Suresh Sadagopan, a certified financial planner.
“The waiting period at public hospitals can be very long from time to time. When the student cannot afford any delay in treatment, he can use his Indian insurance policy at a private hospital,” says Vinayak Kamath, director, G B Education.
If you have an option to choose between Indian and university policies, purchasing a student insurance policy in India will show to be more cost-effective. It will cost you approximately one-third the amount you will have to pay for the university insurance.
For a sum assured of $100,000 and upwards, a 2-year insurance cover from the university costs Rs 27,000-36,000 ($600-800 per year), at the rate of $1=Rs 45. Indian insurance policies will charge anywhere Rs 7,000-19,000 (between $ 150 and $425) for a related policy.
The university insurance mostly covers only medical expenses, and in certain cases, dental expenses. However, student insurance policies available in India offer certain benefits over and above the medical coverage like:
Study interruption
Say, you meet with an accident and cannot follow your studies further because of medical reasons. In this case, the insurance company will repay the tuition fee paid for that semester.
Sponsor protection
If your parent or guardian who is financing your education expires, the insurance cover will ensure your studies are not broken up. You will be entitled to tuition fees payable up to a certain limit, specified in the policy.
Compassionate visit
In case you get hospitalised for more than 7 consecutive days, the insurance company pays for the return air fare for one of the parents to visit you. Similarly, if either of your parents gets hospitalised in India, your return air fare is enclosed.
Repatriation of remains
If a student dies while studying overseas, expenses incurred for repatriating his leftovers to India will be taken care of by the
insurance company.
So, go ahead and choose an insurance product that best suits your needs. It will go a long way in ensuring that you have a smooth sailing during your education years overseas.
