What is Covered Under Pet Insurance?
Pet Insurance indemnifies the customer part or total expenditure for the veterinary treatment if the pet is ill or injured. Some pet insurance policies will even compensate the insured in case their pet is killed, lost or stolen. The pet insurance market has grown tremendously primarily due to the advancement of medical techniques that are used in the pet care industry thus the need to insure your pet cannot be overstated.
The History of Pet Insurance
The fist pet insurance policy was drafted by Claes Virgin in 1890. Cleas was also the founder of Lansforsakrings Alliance, a company that specialized in insuring horses and livestock. The first pet insurance was sold in Britain in 1947. Britain has the second-highest level of pet insurance after Sweden. The first pet insurance was sold in the United States in 1982 to television’s Lassies by the Veterinary Pet Insurance (VPI).
How Does Pet Insurance Work?
In the United States, insurance companies pay off a benefits schedule after agreeing on the deductible. The amount of deductible to be paid depends on the insurance company. The pet owner pays the deductible to the veterinarian who then sends a claim form to the insurance company for reimbursement.
Pet insurance is categorized under non-life and lifetime packages. The non-life pet insurance package covers the owners of the pet for the conditions suffered by the pet during the one-year term that the cover is in force. The pet is covered up to a certain amount and the insured pays for the extra amount if the agreed cost is exceeded.
Lifetime policy, on the other hand, covers the pet for ongoing conditions for a lifetime. However, lifetime packages have limits categorized into per condition, per year. This may have varying implication depending on the insurance company therefore you need to ask your agent to clarify on what each policy covers to avoid confusion in terms of a claim.
Some insurance companies offer additional pet related services such as boarding costs for pet owners whose animals are hospitalized or costs incurred when retrieving lost animals. Other policies may cover expenses such as travel cancellation if the owners have to remain with the pets that need urgent treatment or are on the verge of dying. In Britain, some pet insurance policies include third party liability insurance. For instance, if your dog causes a car accident, the insurance company will indemnify the owner of the damaged vehicle.
