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The Importance of Travel Insurance When Traveling Abroad from Nepal

19 Jul 2023


Would you wish to travel the world and migrate to another country to earn a living as a Nepalese expatriate to send money to Nepal to support your family financially not appear contradictory?


Where traveling the world is a costly hobby, migration is managed somehow, given that mostly pressing financial constraints trigger it, unlike traveling, which is mostly fun and whiling away activity.


But then, do you think migrating without traveling is possible?

Well, the answer is pretty obvious.

According to a report by MIDEQ, about 3.5 million Nepali migrants work abroad. They account for around 14% of the country’s total population. They have been contributing to the Nepalese economy through remittances they send from abroad, with the quantum of remittances reaching $8.23 billion in 2021, according to a report by the World Bank.


But since the Nepalese hail from an economically weak country, it becomes essential for them to get travel insurance to seek financial cover if they encounter an emergency.


This blog will throw light on the importance of travel insurance with some of the prime benefits you can get if you acquire one while you travel to another country to find better employment opportunities.


But let’s first take a look at some of the reasons that force Nepalese to travel abroad for different reasons.
 

Why Do Nepalese Travel Abroad To Seek Employment Opportunities?

You can have several reasons for going abroad, but the following few are some of the prime ones that trigger migration.
 

Scarce Quality Education

Mostly, people in developing countries, including Nepal, believe that a quality education can ensure financial independence. And quality education is a rare commodity in almost all developing countries.

Therefore, Nepalese travel abroad to seek a quality education that can help them get a prospective employment opportunity once they graduate.


The Flailing Nepalese Economy

  • The World Bank said that in 2021, the GDP of Nepal was $36.29 billion.
  • The GDP per capita income in Nepal in 2021 was $1,208.2, according to another report by the World Bank.

If these figures do not prompt Nepalese to work in a foreign land to earn a living and support their families back home through a repeated money transfer to Nepal, then what will, you wonder?
 

Lack Of Sustainable Jobs

Although you can find work across the country, most of the jobs you find are not long-term. So, chances are high that a jobless spell will follow your employment duration, whose longevity is anchored in several factors.

These are some of the most important reasons which Nepalese travel abroad for.


Given your financial constraints, you must ensure that you travel to countries that pay you high wages as an expatriate.

Therefore, take a look here at the Countries That Pay The Most To Expatriate Workers.


Before understanding the importance of travel insurance, take a look at some of the fascinating facts about Nepal to lighten up your mood!
 

Fascinating Facts About Nepal

  • The title Mount Everest, the world’s tallest peak Nepal is home to, was coined in 1865 by the Royal Geographical Society.
  • Nepal’s capital is Kathmandu. It was formerly a lake, according to scientific studies and Nepalese mythology.
  • Nepal does not observe Independence Day because it was never occupied.
  • Nepal’s national sport is Elephant Polo. Yes, you read it right! Polo is played on Elephants in Nepal, unlike on horses elsewhere.
  • In Nepal, Mount Everest is called Sagarmatha. It refers to the peak as heaven’s forehead due to its immense height.

Let’s now understand travel insurance and its importance.
 

What Is Travel Insurance?

Travel insurance is financial coverage meant to provide you with monetary compensation if you suffer a loss due to surprise circumstances that can potentially ruin your trip.

These challenges can include sickness, injury, accidents, luggage loss, transportation or flight delays, etc.

Typically, the insurance costs between 4% to 10% of your trip’s total cost. So, for example, for a trip of $20,000, your travel insurance could cost you between $800 to $2,000.
 

Why Is Travel Insurance Important?

Well, the importance of getting your travel insurance cannot be overemphasized because life is full of unexpected challenges. You can face any challenges that burden you financially.

Given that as a Nepali migrant, you are traveling to earn a living abroad and support your family through an online money transfer to Nepal, you must get travel insurance to have a financial cushion for absorbing the monetary shock if you face one.
 

What Does Travel Insurance Not Cover?

Travel insurance does not cover the following:

  • Storms that are named at the time of buying insurance
  • Seeking medical help for a pre-existing medical condition
  • If you cancel your trip willingly
  • If you are afraid of flying
  • Getting injured during extreme exports
  • Traveling to a risky destination

What Are The Advantages Of Getting Travel Insurance?

Following are a few advantages of getting travel insurance.


Safety Of Your Trip

Traveling abroad with meager resources is a once in a lifetime opportunity. Travel insurance ensures its safety by keeping your trip intact, except for reasons that your insurance will not cover.


Medical Emergencies Are Expensive

In foreign lands, medical emergencies can be really expensive. So, the medical areas that your travel insurance covers can be a big financial help for you.


Guard Against Minor Hiccups

A minor problem can ruin your trip. So, you can use travel insurance as a guard against small hiccups with immense potential to destroy your trip, like baggage loss, etc.


Cost-Effective Travel Insurances Are Aplenty

Do not worry.

You can find several cost-effective travel insurances from different companies that will not be a financial burden but can save you from facing huge financial and myriad other travel-related damages.


The Way Forward

As a Nepali migrant, you wish to save more while you send money to Nepal online. Right? One of the best choices for you, among the available service providers to this effect, is ACE Money Transfer which will offer live exchange rates, and charge low fees, in addition to speed, safety, a wider network and much more from just one window, in your online money transfers. 


FAQs

Why is travel insurance important when traveling abroad from Nepal?

Travel insurance is crucial because it provides financial protection against unforeseen circumstances such as medical emergencies, trip cancellations, lost baggage, and other travel-related risks. It ensures that you are not left with exorbitant expenses or stranded in a foreign country without assistance.


What does travel insurance typically cover?

Travel insurance coverage may vary depending on the policy, but it generally includes medical expenses, emergency medical evacuation, trip cancellation/interruption, lost or delayed baggage, and personal liability, and some policies even offer coverage for adventure activities or extreme sports. It is important to review the policy to understand its specific coverage details carefully.


Can't I rely on my health insurance while traveling abroad?

Most health insurance policies in Nepal do not provide coverage outside the country. Even if they do, the coverage might be limited or exclude certain regions. Travel insurance offers comprehensive medical coverage, including emergency medical evacuation, which can be crucial in countries with expensive healthcare or limited medical facilities.


Is travel insurance expensive?

The cost of travel insurance varies depending on factors such as the duration of the trip, the traveler's age, the coverage limits, and the destination. However, considering the potential financial risks and peace of mind it provides, travel insurance is generally affordable. It is wise to compare different policies to find one that suits your needs and budget.


What should I consider when purchasing travel insurance?

When buying travel insurance, consider factors like coverage limits, deductibles, exclusions, pre-existing medical conditions, emergency assistance services, and the reputation of the insurance provider. It's important to read the policy wording carefully, ask questions if you have any doubts, and ensure that the insurance meets your specific travel needs.



Resources

  • Nepali migrants

(MIDEQ - Migration for development and equality)

  • Inward remittances

(Personal remittances, received (current US$) - Nepal | Data (worldbank.org)

  • Nepalese GDP

(GDP (current US$) - Nepal | Data (worldbank.org)

  • Nepalese GDP per capita

(GDP per capita (current US$) - Nepal | Data (worldbank.org)

  • Fascinating facts about Nepal

(20 Interesting And Fun Facts About Nepal [Explained] (nomadsunveiled.com)


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