As summer sets in, remember to protect against mishaps
As summer vacations are about to set in, it is time for many to pack their bags and head off to a getaway. But before embarking on a foreign jaunt, many people hardly spare a thought to insure their travel as a protection against any mishap that could spoil their holidays.
Odds can weigh on any form of travel abroad and mess up the entire trip. And the recent trail of trauma experienced by scores of travellers because of flight disruptions in Europe due to Iceland’s volcanic ash cloud is a case in point.
Many holiday-goers assume travel insurance as an extra cost burden but compared to the miscellaneous costs of a holiday abroad, travel insurance premium costs very little, experts say.
Whether you are a business traveller or a leisure traveller, having travel insurance saves you from an array of misfortunes by providing insurance against baggage loss, injury, damage caused by accident, injury, sickness, emergency medical situations, theft, cancellation or interruption of travel arrangements, say experts.
Choose the right cover
Different travel insurers have different insurance plans covering different risks and clauses according to one’s needs. So, before laying your hands on any travel insurance plan, experts advise travellers to compare different insurance products such as claims settlement procedures, policy terms, payment options, network of hospitals and so on.
“There are travel insurance products available from different insurance companies, based on the type of benefits and coverage limits offered. It is important to understand the different types of policies that are available, and the coverage benefits that may be useful to each individual,” says David Hunt, Regional Head of Insurance, HSBC Middle East.
If you are a frequent traveller, it is highly recommended to purchase an annual multi-trip plan that covers you throughout the year for an unlimited number of trips. If you will be travelling with your family, you should include them as well, Hunt adds. “We provide an annual multi-trip plan and we recommend even non-frequent travellers to hold this policy as it will help them save money throughout the one- year period. For example, an adult travelling within Europe would need to take only two holidays in a year to make it worthwhile. Our travel protection programme provides coverage for various benefits such as emergency medical expenses, emergency medical evacuation, flight delay, death repatriation, baggage loss and baggage delay and have global service centre providing 24-hour assistance,” Hunt adds.
Pick the right insurer
Another point to consider for travellers buying travel insurance cover is to vet different insurance providers and the risks they’re covering, say experts.
“Choose the right insurer that owns a direct global presence through branches and operations within the country of destination and capabilities to service inquiries and claims by the 24/7 approach,” says Hemant Gupta, Regional Manager (Travel), AXA Insurance Gulf.
He says contrary to other insurance products, make sure you choose the product that offers a protection on different areas of risks. Basically a package of solutions for personal accident, personal liability, emergency medical expenses for in-patient and out-patient covers, travel-related exposures such as luggage delay/losses, accidental loss of money, important documents and personal belongings as well as trip cancellation/curtailment following insured perils.
“The moment of truth generally comes at the time of the claim. And therefore, you need to be sure that your insurer has the appropriate infrastructure that can help you find the necessary support at the right time and in the right place,” Gupta adds.
“When you are abroad, you are in unfamiliar surroundings and it is important to eliminate complications through a clear and simple process so that you as a customer have easy access to the insurer together with a clear set of procedures to submit a successful claim. It is important to know what has to be done following a loss with regard to the time of notification, loss declaration, determination of proximate cause as an insured peril whether connected or not with the chain of events that have finally caused the loss or losses and collecting the required official documents etc,” Gupta says.
As with all financial services, you need to ensure your policy is supported by a reputable organisation that has the financial strength and capability to service any potential claim, says Karl Gray, Head of Personal Lines (Middle East) RSA Insurance.
In the case of travel insurance, the global footprint of the company is also important. Does the company have the potential to service you 24 hours a day, seven days a week in any country in the world – in any language? As travel insurance is a relatively inexpensive form of insurance, it is normally a false economy to save a few dirhams at the expense of reduced cover, he adds.
Before you buy a plan…
- Study what is covered and what is excluded
- Make sure the service network of the insurer is able to handle claims at the right time
- Read the fine print of the policy cover
- Saving a few dirhams at the expense of reduced cover may not be the right approach
- Frequent fliers can opt for multi-trip plans
- Having health insurance does not mean you have cover for travel insurance.
Myths about travel insurance
Although travel insurance provides cover against a number of mishaps and inconveniences during the course of travel, experts say one of the biggest myths among travellers is to assume it covers against any risk under the sun.
“Travel insurance, as most forms of insurance, will not provide compensation to the insured for any and all events, which lead to a loss. Cover is normally restricted to specific “perils”. For example, cancellation cover normally only operates in the event of injury or death of the insured or a close family member,” says Karl Gray, Head of Personal Lines (Middle East) RSA Insurance.
He says it is important you read a sample or summary of the policy cover before purchasing and not wait until you have to make a claim. The policy should use a language, which is straightforward and simple to understand. Be cautious about a policy language that appears unduly “legalistic” or complex.
“Another mistake people make when it comes to travel insurance is missing the fact that travel insurance is not just a product but also the ability of an insurer to provide a global network of support to efficiently handle claims in terms of quick time response and quality of service,” says Hemant Gupta, Regional Manager (Travel), AXA Insurance Gulf.
Another mistake is assuming that certain types of cover will not be required and as a consequence purchasing a cheaper policy with restrictive cover.
Insurance by definition provides compensation for unexpected and unlikely events, so it is not sensible to assume you do not require a particular cover because the event is “unlikely” to happen.
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