In the recent crisis of terrorism attack in Mumbai, a lawyer Ms Lo was killed. In Thailand, the political coup at bangkok resultsalso delay in many who had their flights taken there. The ministry encouraged people to buy travel insurance before traveling overseas. This are the 10-points guidlenes to look out in buying a travel insurance:
Here is a checklist of things to look out for when considering a travel policy:
1 Does it meet your needs?
Make sure the benefits are adequate for you. A superior plan commands a higher premium but it will offer better benefits such as higher claim limits for death and medical expenses.
2 Premiums
Make sure the policy covers the period you are abroad and all the countries you will visit. Insurers also offer group plans covering two adults and children below a certain age. For regular travellers, it may be more cost-effective to buy annual cover. This avoids the hassle of arranging a policy for every trip you make.
3 Terrorism cover
Check if your travel policy covers terrorism and other unrest. Some policies contain conditions, even if they might seem rather obvious. For instance, the policy might be valid provided the insured is not an active participant in the unrest, said Mr Teo.
4 Option to extend travel cover
Some travel plans such as the AIG Assist travel policy give the policyholder the option to extend the coverage before it expires. AIG Assist is marketed by general insurer American Home Assurance, a unit of United States insurer American International Group (AIG).
The option to extend the coverage would certainly have come in handy if you had been one of the 350,000 passengers stranded in Bangkok when its airports were seized by Thai anti-government activists. The airport blockade lasted eight days.
5 Automatic extension of coverage
AIG Assist automatically extends the coverage free for 72 hours or three days if your trip is extended due to ‘circumstances beyond your control’. These include terrorist attacks and riots. Further extensions beyond those three days are possible with an additional premium payment.
Income’s travel insurance does not cover travel delays and trip cancellations due to riots, said Mr Pui Phusangmook, its senior vice-president and general manager of its general insurance division.
However, in the case of the recent unrest in Bangkok, it made an exception and automatically extended the period of insurance for policyholders who were already in the Thai capital and unable to get a flight back to Singapore. The extension was free for up to 14 days.
This automatic extension kicked in in May when Income’s travel insurance policyholders were affected by the earthquake in Sichuan, China. Some policies also allow for automatic extension of the coverage for up to 30 days free if you are hospitalised or quarantined.
6 Does the policy cover additional travel expenses?
Some policies cover additional travel or accommodation expenses incurred after the trip has started, in the event that the policyholder becomes seriously injured or sick. They also offer coverage if the travel companion of the insured person dies in circumstances such as natural disasters or riots in an area not usually affected by unrest.
7 Trip cancellation
Some policies cover the loss of non-refundable deposits or other charges paid in advance, in the event of the financial collapse of the tour operator, for instance. Mr Lim said that it makes sense to ensure that such risks are covered, particularly during a recession when businesses are operating in an uncertain financial climate.
Income said that if you want this coverage, you should buy and activate your travel policy as soon as you pay a deposit to travel agencies or airlines.
8 Overseas medical expenses and evacuation
This covers medical expenses incurred overseas, including hospitalisation. Some insurers even cover treatment by traditional Chinese physicians. Four years ago, Mrs Sulin Ho became a firm advocate of travel insurance after her father-in-law, then 70, suffered a stroke when he was visiting his daughter in Los Angeles. He underwent an operation there, and when his condition stabilised more than a week later, he was evacuated to Singapore, accompanied by a doctor.
As well as covering medical expenses, his insurance policy covered the cost of flying Mrs Ho’s husband to visit his father in Los Angeles during the period he was unable to travel. In all, it would have cost the Ho family more than $500,000 if the senior Mr Ho had not been covered by travel insurance.
‘We would have had to take out a loan if my father-in-law had not bought a travel policy then. Now I’m a firm believer in travel insurance and I constantly remind my friends and colleagues to buy cover when they fly,’ said Mrs Ho.
However, Mr Lim emphasised that the story would not have had such a satisfactory ending had the condition or illness been pre-existing - since these are excluded from all travel policies.
9 Delayed or damaged or lost baggage
This covers delay, damage or loss to baggage, clothing and laptops. The insurer usually stipulates a cap per item. For instance, a laptop claim is typically capped at $1,000.
10 Repatriation of remains and compassionate visits
This feature covers the expense of returning your remains to Singapore in the event that you die during the trip. It also covers the expense of one relative or friend travelling to the scene if assistance is required with the arrangements for repatriating your remains.
extracted from Sunday Straits TImes 7th Dec 2008
