Differences in Insurance Policies between American Airline, Delta Airline and United Airlines - Research Paper Example

? Differences in Insurance Policies between American Airline, Delta Airline and United Airline To secure properties and lives, air travel companies have established insurance policies which serve as agreements for compensation in case of a loss. Insurance policies are therefore contracts or agreements between the insured and the insurance company. The insurance policy expound the claims which the insurance company is legally entitled to pay in case of a risk. The insured are supposed to pay a certain agreed payment known as premium to the insurance companies. In reciprocation, the insurance companies are expected to compensate for damages to the insured. The insurance policies are for meeting certain well defined purposes and have very complicated features and conditions which should be well understood by the person taking insurance cover. In airline transportation, there are various insurance policies which are available to protect the travelers as well as their properties. Nevertheless, difference airline companies have different policies to their customers. Differences in Insurance Policies between American Airline, Delta Airline and United Airline Introduction The airline insurance policies are also referred to as aviation insurance policies. They are insurance policies or insurance covers aimed at enhancing operations in the aircraft as well as protection of the possible risks that accompanies the aviation activities (Lesley and Karl, 2007). There are laws which govern and regulate the policies in the airline operations. The airline policies are always distinct from other protection policies. They are enriched with airline and aviation ideologies, limitation, clauses, and terminologies. The airline companies have several insurance covers to their customers. The policies are identified and defined depending on the frequency of risk in the past. The cost depends on the departure and destination terminals of the customer, the implication of the insured risk, and the distance to be covered by the customer (Lesley and Karl, 2007). The time of travel is also another factor which is important in deciding on the premium to the policy. The luggage’s commuted through airlines are also insured against destruction or loss. Various airline companies have different insurance policies to their customers and also differences protocol for claiming the compensation. The differences are as a result of competition in the airline transportation sector (Lesley and Karl, 2007). The essay below will address various insurance policies to the customer among American airline, Delta airline and United America airline and the liabilities covered. American Airline insurance cover The company insures the customers who are traveling through the policy called the travel insurance policy. It’s a unique combination of insurance benefits that insures the customer when they are away from home (Lesley and Karl, 2007). The cost of the policy varies depending on the cost and the length of the trip, the customer’s age, and health. The company charges between 5% and 10% of the total vacation cost. The company responsible of granting the insurance policies on behalf of the American airline company is Allianz global assistance (Lesley and Karl, 2007). The travel insurance policy also ensures that, the America airline customers’ valuable products are protected from unexpected circumstances through the liability of baggage protection. Some of the unpredicted situation that the insurances policy covers entails; bad weather which can destroy the good in transit, job loss before the return journey, and illness within the vocational period. The liabilities covered by the America airline for its customer under the following insurance policy include strip cancellation liability, trip interruption, baggage’s liabilities, emergency medical transportation, emergency medical and dental liabilities, and loss and damages liabilities (Lesley and Karl, 2007). Delta Airline’s Insurance Policies The Delta airline offer trip insurance policy to its customer. The policy is almost similar to travel insurance policy offered by the America airline but it has some distinct variations. Trip insurance is important as it cover the customers from risks such as; travel cancellation or interruption coverage (Mary and Tim, 2012). It guarantees space of mind that is accompanied by protection from overseen calamities, emergency and dental protection, protection from any loss that may be incurred due to loss of a baggage or the delay of the baggage, and it also offers twenty four emergency help within their area of jurisdiction. All the above benefits vary depending on the product the customer have gone for in the insurance policy (Mary and Tim). The company refunds the premium within ten days after the purchase of the same (premium). The trip insurance products includes; airline trip protector for itineraries who commutes within the United States of America, comprehensive trip protection for itineraries who are from outside the United States of America, award trip protector for those within and outside America, and annual trip protector for the United States of America residents only (Mary and Tim, 2012). This is different from other airline companies like America airline which do not categorize their customers on the bases of their area of residence. United Airline Insurance Policies The United Airline Company insures their traveling customers using the Trip protection policy (Sallie, 2010). The policy is almost similar to the Trip insurance policy in the Delta Airline Company and Travel insurance policy in America airline but they have straight forward differences. Trip insurance policy is an insurances policy for a short period of time. This is distinct from other big airline companies who offer such kind of policies to both short period journeys and long period journeys. The insurance cover begins when the customer purchases the policy and it ends when the customer vacation ends. The premium on this policy depends solely on the amount of money spent on the trip (Sallie, 2010). This is difference from the Delta airline which values both the money and the time spent in the journey. The more the customer spent, the more he/she is covered and the high the policy premium. The Trip protection policy has the following liabilities. Trip cancellation liability which allow the customer to be reimbursed a certain percentage of the trip price although, this depends on certain laid down conditions. The risks that are covered in trip cancellation liability includes; death of a family member, loss of a job, personal illness or even intense illness of a family member. The other important risk covered under this policy is trip interruption or delay (Sallie, 2010). The customer is compensated with a certain percentage of the premium if the trip is interrupted or when the customer cannot complete the journey. The policy also ensures that, the customers are paid on daily rate for the delayed trip. Loss or delayed baggage benefits are also part of the liabilities catered for by the policy. The customers are compensated when the baggage is delayed for specific period of time or total compensation if the baggage is lost. The customer is also covered with medical/emergence benefits which are paid at usual and customary rates (Sallie, 2010) Conclusion The airline companies have endeavored to protect their customers against all protectable loses and risks. Different companies have adopted difference policies which fits their customers’ needs. There are some very basic risks which are covered by almost all airline companies. However, there are some differences on the different insurance policies adopted by various companies. In regard to the three companies which have been discussed above, the factors they consider for compensation and refund are very different and unique. This can be illustrated by the fact that, the Delta airline refunds their customers within the ten days of purchasing while others have to consider some factors before they refund the premium to their customers. There are differences in the components which are in different policies. The determinants of the amount of premium to policies are difference and defined differently among different airline companies. It is evident that, the three companies use various factors in adopting their insurance policies. Therefore, there are very clear differences in the insurance policies given by different airline companies. References Lesley, S. and Karl S. (2007). Frommers America South West. Washington. John Wiley and Son Publisher. Print. Mary, J. and Tim, C. (2012, March 02). Delta airline get have appreciated for their premium rates. Bloomberg news. Business week, 340, 17-19 Sallie, M. (2010, March, 20). United Airline Offer Trip Protection Insurance Against Its Customers. The Washington Post, pp 45-46 Read More