TRAVEL HAS SURELY picked up with the pandemic now in our collective rearview mirror for the most part. The numbers are proof—the Malaysian Aviation Commission (MAVCOM) reported that passenger traffic reached 69.9 million in the first 10 months of 2023, to a point where they had to revise their projections upwards for the year. [1] There was an almost 250% increase in passenger volumes among European airports in the first half of 2022.[2] People are eager to see the world again after being cooped up at home, and to make up for lost time.

However, an element often overlooked when it comes to planning vacations is travel insurance. I know people often hear the word “insurance” and instinctively want to slowly back away from the conversation.

Growing up around life insurance agents, these things come more naturally to me, but that made purchasing it on my own for the first time only slightly easier than for the general public. Like other kinds of insurance, purchasing a travel insurance plan for the duration of your trip comes with peace of mind. Travel insurance protects you from unexpected hiccups leading up to and during your vacation. These include unexpected trip changes or cancellations, lost or damaged belongings and medical emergencies.

While you are still able to purchase your travel insurance on the day of departure, it is advisable to purchase it once your tour or flights have been booked. This is to ensure that any delays or cancellations that fall within the terms of the policy will be insured.

Medical Emergencies When Travelling

When talking about insurance, most people instantaneously think about medical treatments. Yes, travel insurance acts as a shield for you and your travelling companions in the event of a medical emergency during your trip. This includes clinical visits due to illness or treatments required due to an accident.

Once, I was on vacation in Thailand to attend a Loy Krathong celebration. There was an accident involving handheld fireworks when it misfired and hit the ground, and the subsequent debris struck one of the members of our travelling party in the eye. We managed to get our friend to the hospital in an ambulance and she received treatment at a reputable hospital. It was because she had travel insurance that she was able to get a reimbursement for the treatment she received during the trip.

However, hospitalisation due to pre-existing conditions is usually not covered by travel insurance, unlike medical insurance that most of us have—I hope you have one for yourself. In most cases, the medical claims will be on a reimbursement basis rather than the cashless standard that we practice at our local hospitals. This means that in the event of a medical emergency during your travels, the most common solution is to pay first and then file a claim for reimbursement upon your return. This is primarily attributed to the limited infrastructure and logistical complexities involved in Malaysian insurance companies directly settling bills at hospitals overseas. Clients are reminded each time they purchase a travel insurance plan to keep all itemised invoices and reports for any treatments they sought during their travel so they can submit their claim upon return. There are one or two players in the market offering cashless systems (functions like a medical card); therefore, do check if the plan you are purchasing offers a cashless system or reimbursement.

Follow-up medical treatment upon your return is also something that many travel insurance plans cover. This means that after receiving treatment in the country you have visited, you may still be entitled to reimbursement for any follow-up required.

While the medical-related coverage is something that will put us at ease should the need for any treatment arise during a trip, these are not the most common claims in my experience dealing with travel insurance.

Travel Inconveniences

One common occurrence when travelling is discovering that your checked baggage has been damaged. It is a bummer to find yourself standing at the baggage claim, eager to step out of the airport to start your vacation, only to find that your bag is cracked, or a wheel has set off to a different travel destination. While some airlines may compensate you for the damage, the amount may not be sufficient to replace the bag with something of equal quality. If so, obtain a report from the airline’s counter at the baggage claim area so you can file a report when you have returned. Then, you may shop for a reasonably priced replacement and submit the receipt with the report upon your return. Just make sure you are aware of the maximum reimbursement amount that your plan offers. That being said, one should not expect a one-for-one replacement if the damaged bag is from a designer brand. Reimbursements are meant for you to regain functionality for your travelling.

Then, there is the most common travel irritant—flight delays. These and certain deviations to the trip are also covered by travel insurance—usually with a six-hour delay allowance. The caveat is that the delay must be due to a mechanical issue or weather conditions. This means that if the delay is caused by operational issues of the airline, like combining two existing flights due to low volume of passengers, it is not eligible for compensation. Deviations like missed connections due to a delay or cancellation, overbooked flights or even having your journey rerouted are all things that fall under travel insurance coverage.

In the event of a personal matter that has caused the cancellation, postponement or curtailment[3] of your trip, most travel insurance plans do offer some form of coverage.

The insured may also be compensated if a natural disaster or severe weather is affecting the trip, regardless of whether it is happening at the point of departure or at the destination country. As an extension of this, any damage or destruction of the insured’s home due to a natural disaster is claimable.

While the world has recovered from the Covid-19 pandemic, most travel insurance plans will also reimburse the sum insured should there ever be another government-mandated travel restriction due to an epidemic outbreak.

What Is Covered?

Each travel insurance plan is usually determined by the coverage amount and the number of days you will be travelling. There are also annual travel insurance plans for those who are frequent fliers, making it more cost-effective. The coverage period should include the day of departure from Malaysia and the day of arrival back on home soil.

The traveller’s age will also affect the eligibility for travel insurance. Generally, you should see most plans covering up to age 80. Some insurance companies will offer protection for travellers over the age of 80, but that will come at a significantly higher cost. Families going on a vacation may also find that some insurance companies offer family plans, which will usually be more affordable than buying separate plans for each person. However, this only applies to the immediate family members: parents and their children below the age of 23. There is also another catch—if the child aged 18 to 23 is no longer a student, but a working adult, they cannot be considered under the family plan.

Therefore, be sure to check out the available plans in the market and get yourself insured before you travel. Your insurance agent would be the quickest point of contact for travel insurance. They can usually provide multiple options for comparison. Even if they do not personally deal with travel insurance, chances are they have someone they go to for that. Alternatively, sites like RinggitPlus and even Wise have a list comparing existing plans in the market. While each plan is similar at its core, it is important to read the terms and conditions carefully as well as the benefits available to you.

Foonotes:

[1] https://www.mavcom.my/en/2023/12/27/malaysiasoars-to-69-9-million-air-passengers-in-10-months-exceeding-projections/

[2] https://www.euronews.com/travel/2023/04/21/post-covid-revenge-travel-has-gone-big-and-the-revenge-is-sweet/

[3] Curtailment means you are forced to return home due to circumstances such as serious injuries or illnesses including death, and involving you (the insured person), your immediate family members or travelling companions. Such events may be compensated.

Insurance companies generally define “immediate family members” as the smallest family unit, made up of parents and their children. Some insurance companies define it as the legal spouse, children, parents and their siblings, parents-in-law, grandparents, grandparents-in-law, grandchildren, siblings, siblings-in-law, nieces or nephews of the insured. Do check the fine print of your travel insurance plan.