Certified Travel Associate Practice

What is the purpose of Travel Accident insurance?

1. Covers rental car damages

2. Reimburses medical expenses

3. Provides cash payment for loss of life or limb

4. Reimburses expenses due to theft, damage, or loss of property

The correct answer is: Provides cash payment for loss of life or limb

The purpose of Travel Accident insurance is primarily to provide financial protection in the event of a serious accident that results in loss of life or limb. This type of insurance is designed to give cash payments to the insured or their beneficiaries if an accident occurs during travel, ensuring that loved ones are compensated in a time of need. It addresses the emotional and financial impacts of such losses, offering a layer of security to travelers. While some other forms of travel insurance might cover medical expenses or losses related to rental cars and personal property, those aspects are part of different types of insurance products. Travel Accident insurance specifically focuses on the severe consequences of travel accidents, making it distinct in its purpose and coverage. This targeted support reinforces peace of mind for travelers regarding high-risk situations.