Corporate travel insurance protects the organization against extraordinary expenses that can incur whilst employees travel either internationally or domestically while on business. The cover for travel insurance policies typically include expenses for medical and dental treatment; flight cancellations; emergency evacuation and repatriation of remains; accidental death, injury or disablement benefit; personal property; legal assistance; hospital confinements; and travel assistance services.
Group Travel Insurance policies can typically be arranged on either one of the following 2 ways – Named basis insuring specific personnel and/or Headcount (unnamed) basis on a fixed number of unnamed personnel; the latter usually requires groups of 5 and above to be under the policy. If the company wishes to insure on a Headcount basis, the premium will be the rate applicable for the risk profile of each worker multiplied by the annual wage of the worker.
Let us assume there are a total of 20 employees in a company, out of which 15 are frequent travelers, and the company wishes to take up a Corporate Travel policy on an unnamed basis. If a subgroup of, say, 5 employees are travelling at any one time, employers should still insure the total number of travelers as 15 rather than 5. It would be best to present to the insurer a “trip pattern” that provides details of the total number of trips per year and the destination of these trips. In this instance, the employer will declare that there are 15 Travelers going to an estimated 50 trips per annum – 30 trips to Asia, 20 trips worldwide. It would suffice to provide the insurer with estimated figures. This way, the employer does not have to repeatedly inform the insurer the identities and number of employees each time a trip is made on an unnamed basis, as all 15 of them would be covered.
In the event of an insurance claim, what the company needs to do is to submit a brief letter (with company letter head) indicating that the person is intended to be on the travel policy. This letter should be accompanied by the insurer’s claim form.
