Travel insurance was first provided for the benefits of businessmen on overseas trips. Originally, cover was limited to personal accident cover and loss of or damage to baggage. Following the worldwide expansion of air travel and the growth of popularity of holidays abroad, demand for insurance increased and the scope of cover was widened. The development of package holidays has further increased the demand.
Most Travel insurance was originally written by tour operators. They usually held a master policy with a company and set out terms of insurance in their brochure. Such cover was provided automatically unless the client specifically requested otherwise. There is now a whole range of suppliers including traditional intermediaries, banks, motoring organizations, sports and professional associations, as well as insurers selling directly to the public.
The majority of policies provide five basic sections of cover:
- Personal accident benefits
- Medical and associated expenses; often in conjunction to 24-hour emergency service
- Loss of deposits and other charges incurred due to cancellation or curtailment of the holiday
- Baggage, personal effects and money
- Personal liability
- Health insurance
- Life insurance
- Property and Personal Liability insurance
- Car insurance