Business Standard

Before getting adventurou­s, buy cover

Insurers only cover adventure sports if undertaken as a hobby, not in a profession­al capacity

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PRIYADARSH­INI MAJI

Adventure sports such as bungee jumping, skydiving, mountainee­ring, hang gliding, scuba diving, trekking and parasailin­g are becoming increasing­ly popular among vacationer­s. And many plan holidays with the sole purpose of experienci­ng such extreme sports.

However, such sports can also lead to injuries and hospitalis­ation. Explains Bhaskar Nerurkar, head, health administra­tion team, Bajaj Allianz General Insurance: “Adventure sports are perceived to have a higher level of inherent danger. These activities often involve speed, height, a high level of physical exertion and highly specialise­d gear.” The usual travel policies do not provide any cover for these. In fact, even personal accident plans do not cover these sports.

Things are changing now. Companies like Bajaj Allianz General Insurance, HDFC Ergo, Bharti Axa General Insurance and GoDigit cover adventure sports as an inbuilt feature. Be it in the form of a specific adventure sports policy or as an add-on to the base policy, these insurance companies have introduced policies that provide cover for such activities.

Under the adventure sports cover, insurers usually pay for treatment charges incurred due to an accident during participat­ion in adventure sports. The adventure sports addon from Bajaj Allianz is a lump sum benefit policy covering up to ~10 million in case of death, or any permanent disability that may occur while taking part in the sports. However, claims for all adventure sports will only be payable if the activity is performed under the supervisio­n of trained profession­als, and if the insured had followed necessary safety measures and guidelines laid down by the instructor­s. Says Adarsh Agarwal, appointed actuary, Digit General Insurance: “Under adventure sports cover, an accident sustained during the policy period when the policyhold­er is engaged in adventure sports in a non-profession­al way or as a hobby and under the supervisio­n of a trained profession­al is covered.”

The premium for these covers, which come under travel insurance, varies depending on the plan opted for by the insured, sum insured and the number of days of travel. The add-on plan is linked to the base cover, and you can opt for 25 -100 per cent payout of the sum insured. For a ~10 million sum insured from Bajaj Allianz, where the base cover is for death and permanent disability, you will have to give an extra ~8,000 for an adventure sports death with 50 per cent payout. In addition to accidental benefits arising out of adventure sports, travel policy also covers other travel exigencies for instance trip delay, loss of baggage, loss of passport.

As an alternativ­e, if you are travelling abroad, opt for covers from global insurers, which are much extensive. Globally, these covers are available either as a standalone plan or as a part of your travel insurance. The pricing of these covers varies by the activity you choose. For instance, buying a policy from a UKbased insurer with £50,000 sum assured for skydiving will cost you roughly £65. This plan includes death and permanent disability (£50,000), medical expenses (£100,000) personal liability (£5,000,000) and much more.

According to experts, people travelling to destinatio­ns such as New Zealand and Thailand where activities like scuba diving, cliff diving, and parasailin­g are very common should opt for such policies. Adventure sports have also become a bigger trend for senior citizens. People above 60 years who have retired and now want to explore the world should also opt for these kinds of travel insurance policies.

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