Travel insurance essentials!
2018 saw over 500 000 South Africans travelling to destinations abroad.
“Buy travel insurance” usually doesn’t rank very high on your “to-do lists” before a vacation. Many people cringe at having to fork out more money when their planned journey is already stretching the budget.
It is important for travellers to remember that for a relatively small premium amount, travel insurance could save you from financial hardship if you fall ill or become involved in an accident abroad. It may also cover costs in case of death, or if your trip was interrupted for reasons out of your control.
There are various travel insurance options offered in the marketplace. It is important to remember that when you buy a travel insurance policy you, as the client, are entering into a legal, contractual relationship with the insurer, which has formal terms and conditions.
Travel insurance policies vary a great deal, covering different losses and offering different features. We have therefore designed a “travel insurance features” which highlights “must have”, “should have”, and “could have” features to consider when buying the right policy for you.
Most policies include cover for:
· Lost or stolen bags
· Emergency medical expenses
· The cost of cancelling, delaying or cutting your trip short
· Personal liability, in case you’re sued for damaging property or causing injury
Most policies exclude cover (NB note: add-on cover may be available):
· If you’re over 65 or have a medical condition
· For high risk activities – i.e. adventure sports, winter sports and any “dangerous activities”
· Coverage for strikes, civil unrest, earthquakes, acts of terrorism and epidemics
If you’re travelling with your family or friends, there are options in terms of the policy cover, i.e:
· Single-parent family cover
· Couple travel insurance
· Family holiday insurance
· Couple and child cover
If you travel abroad more than twice a year, annual holiday insurance or multi-trip insurance is usually better value.
If you are combining your travel from both business and pleasure, there are insurers that offer both business and leisure cover under one policy.
It is our role, as your appointed broker/intermediary, to understand your travel insurance needs and present you with insurance options that best suits your needs, and your budget, in order to ensure that you are protecting yourself properly, rather than simply choosing the cheapest option available.
TRAVEL INSURANCE FEATURES
(MUST HAVE, SHOULD HAVE, COULD HAVE AND THINGS TO WATCH OUT FOR)
“Must Have” Features
Medical expenses: provides cover towards the costs of emergency medical and surgical treatment while you are away.
Getting you back home (repatriation): cover is provided for the costs of emergency repatriation (for medical reasons) back to RSA.
Cancellation/curtailment: if you have to cancel or shorten your trip, this covers you for any travel and accommodation costs you have paid and can’t claim back. It’s good cover to have.
Natural Disaster: covers costs of providing similar accommodation in the event of a fire, flood, earthquake or storm.
Personal accident: covers costs if you sustain an injury resulting in Death and Permanent Total Disablement.
Travel Abandonment: if you have to abandon your trip and cancel your journey, this cover will reimburse your travel and accommodation expenses.
Baggage Cover: covers your baggage if it is lost, stolen, damaged or destroyed.
Personal Liability Cover: this covers you if you are liable to pay damages due to accidental bodily injury to someone or for loss or damage to someone’s property.
“Should Have” Features
Dental emergency: provides cover towards the costs of emergency dental treatment while you’re away.
Money: replaces money or equivalent if it is lost or stolen.
Terrorism: covers your medical costs and other insured losses like damaged baggage in the event of an act of terrorism.
Loss of passport: provides cover towards additional travel and accommodation expenses as a result of needing to replace a lost passport.
Delay: if your travel plans become delayed for example, due to adverse weather, the insurer will pay you a certain amount.
Hijack, Kidnap and Wrongful Detention: provides cover in the event of an unlawful seizure, kidnapping or wrongful detention.
Missed departure: covers costs of additional accommodation and travel expenses if you miss your departure flight, boat or train due to situations outside of your control.
Identity Theft: covers you for reasonable legal expenses incurred as a result of identity theft.
“Could Have” Features
Scheduled airline failure: covers you in the event of your airline going out of business.
Winter sports: covers you for winter sports like skiing and snowboarding.
Legal assist: covers legal expenses if you are imprisoned or threatened with imprisonment.
Value Added Services: such as telephonic medical advice, foreign translation services and delivery of essential medicine if luggage is lost.
Things to Watch Out For
Different excess amounts: your insurance company might apply different excesses depending on the type of claim.
Overseas days: maximum number of days that you are covered for whilst outside RSA in any policy period.
Receipts for baggage claims: when you need to claim for your baggage, some insurers insist on proof for all baggage items and all items above a certain value.
Territorial Limits: it is important to check which countries are excluded from incidents.