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Insurance Coverage Area

Reviewed by Sujaini | Updated on Sep 30, 2020

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What is an Insurance Coverage Area?

The area protected by the insurance policy refers to the geographical location in which the benefits of an insurance policy apply. For example, the insurance coverage area for a travel health insurance plan may be defined as "anywhere in the world."

This means that the policyholder can get required medical care anywhere and are entitled to the benefits of the policy, given the other requirements of the policy are met. The geographical area where the individual is covered by the insurance policy is also known as the "coverage area."

Analysing Insurance Coverage Area

A typical example of an insurance coverage area is a motor insurance policy. The geographic location of the motor policy may be expanded to include Bangladesh, Bhutan, Nepal, Pakistan, Sri Lanka and the Maldives for an additional Rs 500 premium per car, regardless of vehicle size.

Nevertheless, these geographical extensions expressly exclude protection for vehicle damage, injury to its passengers, and third-party liability for the vehicle during air travel or sea travel for the purpose of ferrying the vehicle to the extended geographical area. Damage by road, rail, waterway, and airlift during transit is protected within Indian borders.

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