Travel Insurance is an extra protection when you go on a holiday. Even though you may have your Life Insurance policy, Travel Insurance is designed to provide financial assistance in case of accidents when you are abroad. However, there are things that you should be aware of when you make a decision to purchase a plan.
1. Not all travel insurance policies are the same.
Travel Insurance has become some common that many people would just go to their familiar agents or banks to buy one online quickly, thinking that all coverage are about the same. Well, the price seems to be similar but the coverage is not. Do check out the coverage details and make comparison before you made a purchase.
2. Same Insurance Company. Different Plans.
Some insurance companies have several travel insurance plans, and each plan has various levels of protection. Apparently, travel agents, insurance agents and banks are free to choose the types of plans they want to sell to their clients. I have recently come across a case when a bank offers insurance plans with a limit of HK$50,000 for Return of Mortal Remains while the travel insurance company and a travel agent sells travel plans with “unlimited” amount of coverage for this particular clause. All of them are selling travel insurance plans from the same insurance company. This may be the last clause you would look at. However, when it was needed, HK$50,000 wasn’t enough. At least that was the case I saw. Is there a price difference in terms of premiums? May be HK$10-20. So I would encourage you to look at more than the price when making a decision.
3. Geographic Coverage.
The choices of travel insurance plans are abundant. Some are worldwide coverage. Some are by regions: Asian, Europe and the US. There are also Japan only travel insurance. For China, it is even more complicated, there are different terms for different provinces.
4. General Coverage and Age Difference.
The most common coverages of Travel Insurance include Personal Accident, Medical Expenses, Emergency Assistance Services, Baggage and Personal Effects, Travel Delay, Lost of Travel Documents, Trip Cancellation, Credit Card Protection. However, please note that the Personal Accident and Medical Expense for travellers under 18 years and above 75 years are usually less. Some companies will limit that to a fixed amount while others offer up to a percentage of claim (yes, it can be 30% of the sum insured only). For example, if the maximum protection is HK$2,000,000, juniors and seniors get only HK$1,000,000 max.
5. Personal Accident.
This is a coverage for death or permanent disability as a result of accident. The sum insured is the highest while travelling on public transportation and half on private vehicles. Self-driving trips are obviously the latter.
6. Medical Expense.
Travel insurance does not cover any medical expenses arising from pre-existing illness. So if you have certain health condition, please consult your doctors and take necessary medication with you.
7. Sports.
Professional sports are normally on the exclusion list. For those who travel overseas for marathons, rock climbing, scuba diving, bungee jumping, skiing will have to look into the right plan whether or not you are a professional sports person. Again, only accidents will be covered. So for those who have pre-existing health conditions have to make sure that your health condition is fit for the game.
8. Single Journey or Multiple Trips Annual Plan?
Hong Kong travellers love Japan, Korea, Taiwan and Bangkok. If you tend to travel for an extended period of time or frequently every year, it may be worth looking at the Annual Plans which covers unlimited number of trips (no more than 90 days each trip) because it may be more economical and there is one less thing to manage before your pack and go trip.
9. Major Exclusions.
Other than pre-existing or congenital health conditions, professional sports and racing mentioned, War, HIV/AIDS, self-inflicted injuries, influence by alcohol, non-prescription drugs, pregnancy, losses not reported to the police or the carrier within 24 hours for baggage and cash, dangerous assignments are usually not covered.
10. Make a claim.
Like all other insurances, there is a time limit for filing a claim. It is usually within 30 days of the “event taking place”, not after you return from your trips. Make sure you have all of the valid documentations, reports, receipts and fill out a form to file a claim.
Travel is for fun and buying the right travel insurance will give you peace of mind.
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