All about travel insurance

You have booked your holiday, your bags are packed and now you only have to get to the airport; you have even taken care of travel insurance. After all, doesn’t paying by credit card mean that travel insurance is automatically included?

Many a traveller has made the mistake of relying solely on the automatic cover provided when paying by credit card, only to find out that it is not necessarily sufficient. A prospective traveller should find out exactly what is covered and top up with further insurance, as there are always exclusions. Refer to the terms and conditions and check for areas of concern. Age limits, general exclusions and medical conditions known to the traveller are some of the ‘hot topics’ to look out for.

Travel insurance covers medical expenses and financial and other losses incurred while travelling locally or internationally. Comprehensive travel insurance usually includes cover for medical repatriation and emergency evacuation, personal accidents, trip cancellation, baggage loss and various other benefits.

Medical emergencies

Few things are as distressing and potentially devastating as a medical emergency while on holiday. This can be anything from serious ailments to virus infections or a debilitating accident. Apart from the medical bills that can be incurred while being treated for a medical emergency in a foreign country, it is often necessary for the patient to be transferred home – at great cost. Medical cover is therefore one of the most important forms of travel insurance one should consider.

This is especially true when the medical services in a particular country are unsophisticated and the patient runs the risk of developing other medical problems because of inadequate medical care. Travellers who fall ill or are injured risk being alone in a foreign country with unfamiliar customs, unable to speak the language and being exposed to appalling medical facilities. Organising a medical repatriation or the body of someone who is deceased is facilitated through the assistance companies the insurer contracts to.

Getting the right cover

Speak to your financial adviser to ensure that you acquire the package that is best suited to your needs. Some insurance companies load the insurance premiums for travellers over a certain age and might insist that senior travellers fill out a medical questionnaire. This may result in the premium being increased or cover being declined if the risk is too high. If you have an existing medical condition, the travel insurance company might not pay should a medical emergency arise from this condition and the correct cover is not in place.

If you plan to take part in adventures like motorcycling or mountaineering, your standard insurance package might not include cover for injuries resulting from these activities. However, some insurers offer cover for leisure, adventure and extreme sport activities, which includes cover for the following activities (except where these activities are professional or involve professional team participation):

Archery (properly supervised), badminton, ballooning (organized excursion), basket ball, bowls, canoeing (in calm waters), cycling, diving (recreational, and accompanied by a qualified diver), fishing, golf, horse-riding (excludes competitions and jumping: protective head-gear to be worn), roller-skating, rowing, snorkelling, squash, surfing, tennis and volley ball.

Travellers can also purchase snowsport cover if they are going skiing or cover to protect against loss or theft of golf equipment. Having the right cover in place ensures that passengers who have been injured in skiing accidents, for example, can be upgraded to business class if they have broken limbs.

Lost luggage

Although most airlines automatically offer compensation for lost luggage, it is often not nearly enough to cover the replacement costs of a suitcase and its contents. Lost luggage insurance ensures that you are compensated suitably and also covers the inconvenience of delayed luggage.

Women usually carry objects in their handbags which may be of significant financial value. However not all insurance companies cover the loss of handbags and it is therefore important to specifically ask your adviser about this.

A holiday should help you get away from everyday problems and help you to relax. Knowing that your insurer will cover any financial loss due to unfortunate eventualities while on holiday will lessen your worry about potential financial losses; it could be a small price to pay to avoid possible medical complications or financial devastation.

The information contained in this article is of a general nature and intended for information purposes only. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial, legal or other issue. Individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult your financial planner/adviser to take into account your particular investment objectives, financial situation and individual needs.