All things to know about Personal Liability Insurance for Student Health Plan

Aug 04, 2021 (0) comment , , , , , ,

Moving into another country means a new lifestyle, work culture, new time frame, and many more things new. A student goes through the exact change and lifestyle when they move abroad for higher studies; they ought to leave behind their country’s governing laws and understand the citizens of that country & their lifestyle.

It is necessary, especially for international students, to be adequately aware of themselves and discover the country’s laws where they will pursue/pursuing higher education, even if that student is not a citizen of that country. Things are not the same in all nations, and there are always chances that a student breaks the law unintentionally. It could be a harmless act in their home country, but it might invite legal action in a distant country.

Often, committing such an offense unknowingly could result in legal action in the eye of criminal or civil court in another country. Hence, it becomes difficult for students to arrange legal help or even money for legal counsel. The terms and conditions for bail become burdensome, especially when not all legal procedures and regulations are unclear.

Secure Cover’s expert team of Insurance advisors will provide detailed information on personal liability coverage for students under insurance plans. The article would elaborate on why it is essential for students traveling abroad to have insurance that covers personal liability.

What is Personal Liability Insurance?

Traveling abroad would mean securing oneself in every way possible, mainly a student visiting a foreign country for a longer duration. Personal liability coverage is another additional rider in an insurance plan that assures financial support in an unforeseen event such as a legal offense situation. This rider promises to meet any financial liability arising out of actions of the policyholder which lead to accidental injury or loss of property to the third person in a distant country.

However, the assistance/coverage is only limited to unlawful acts that lead to civil action, but not that action that leads to criminal prosecution. Such personal liability riders in an insurance plan provide financial support and relief for different types of liabilities. Personal liability coverage can be provided under a stand-alone policy or may come packaged under a comprehensive insurance plan such as travel insurance.

Why must students have personal liability insurance?

Students should have personal liability insurance because it provides Cover against the following types of financial liabilities:

Medical bills

Suppose the third person is injured due to the policyholder/student’s action, which requires medical treatment. In that case, the insurance company covers the cost of the treatment incurred on that affected person.

Suppose a student does not have personal liability coverage in their health plan. In that case, they might have to pay the medical expenses/loss of the other person from their pocket, the medical bill of such person. In many cases, this coverage extends not only to injury caused by the policyholder but could also be an injury occurring within the policy holder’s property to the third person.


Legal defence costs

The cost of legal defence, especially in a country as costly as the US, could be sky-high. The medical treatment requires a particular health plan so that a student could avail of medical facilities in the country. In case of personal liability, a student against whom a suit is filed may have to meet their pocket’s legal defense cost.

However, if the student has personal liability coverage in their health plan, it would cover all the legal costs, including the lawyer’s fees. The coverage of the amount would depend on the sum insured mentioned explicitly in the policy document.


Court-imposed settlement amount

In several personal liability insurance plans, the insurance provider pays the court-imposed settlement amount. One should be aware that the amount of damage claimed by the third party could run into millions of dollars in the case of a personal liability suit.

Suppose a student has sufficient personal liability insurance. In that case, they will not have to pay the damage from their pocket. Instead, on behalf of the student, the insurance company pays the amount settled by the court as compensation.

Student’s professional liability

Certain professions such as medicine or nursing may witness instances where the medical practitioner’s medical advice or medication may adversely affect the patient’s health. It may lead to the patient or their relatives filing a suit against the medical practitioner.

Suppose a medical student studying in the US has professional liability insurance. In that case, the financial aspect of the liability will be covered by the insurance company.

Nevertheless, one needs to remember that not all insurance plans cover liability arising out of professional action. The policyholders are always advised to read the policy document to determine if the liability insurance covers those liabilities due to professional activity.


Let’s Wrap Up!

Personal liability insurance coverage aims to provide financial support to the policyholder in the event of any injury or damage caused to the third person due to the policyholder’s actions. The coverage is essential for all the students who are planning to go abroad for higher studies. It helps cover the cost of medical expenses incurred by third parties due to the policyholder’s actions.

The policy would also cover the cost of legal defense and the policyholder’s amount to the affected person as damages. Certain professions such as medicine and nursing require students to have professional liability insurance coverage in addition to personal liability insurance.

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Disclaimer: The content of this blog is based on the personal research of the writer. Reader’s discretion is advised. Neither Student Cover nor the writer will be held responsible for any wrongful interpretation of the content of this blog.

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