For many, buying travel insurance while planning for an overseas trip is a must. However, do you know how much are you covered for your insurance plan? Chartered Financial Consultant Tan Ooi Sim Winston tells us more.
#1 Overseas Medical Expenses
This pays for medical and hospital expenses incurred while overseas as a result of sickness or injury.
#2 Medical Expenses incurred upon return to Singapore
This covers follow up treatments of the overseas medical / hospitalisation and new medical treatments sought in Singapore after return to Singapore. Insurers normally impose a maximum time frame where one can claim for the treatments.
#3 Overseas Hospital Visit & Additional Accommodation Expenses
This pays for the cost of transportation and hotel accommodation of one relative or friend if the insured is hospitalised overseas.
#4 Hospital Daily Income (Overseas and Singapore)
If insured is hospitalised while overseas or in Singapore (after the trip), insurer will pay a pre-determined daily cash benefit based on the number of days stayed in hospital.
#5 Medical Expenses for Pregnancy Related Sickness
This pays for medical expenses for pregnancy related sickness. Note that each insurer has different definitions and list of pregnancy related sickness, do ask them for a list for what is covered.
#6 Emergency Medical Evacuation
This covers all expenses for emergency medical evacuation. Insurers typically need you to call a specified hotline for this benefit to be effective.
#7 Personal Liability
This insures against third party claims for bodily injury or property damage caused by insured’s negligence while overseas. Knowing this, please do not go around hurting people or destroying other private and public property.
#8 Trip Cancellation, Postponement, Curtailment
These cover non-refundable portion of travel costs that was paid by the insured and caused by unforeseen circumstances. Please ask the insurer for their definitions of unforeseen circumstances, as each insurer differ. Examples of unforeseen circumstances include death of family members, injury or sickness suffered by insured, natural disasters, etc.
#9 Alternative Trip Arrangement, Flight Misconnection, Travel Delay, Flight Diversion, Travel Overbooking
These cover additional cost incurred for alternative transport and transport delay while overseas.
#10 Emergency Purchases, Baggage Delay
These cover emergency purchases made if insured’s baggage is stolen or permanently lost. It also covers baggage delay while overseas or in Singapore.
#11 Loss of Personal Money, Travel Documents, Baggage & Personal Effects
These cover losses suffered due to robbery, burglary or theft. Please do remember to make a police report with the local police straight away after realising that there is a loss.
#12 Jewellery Coverage
Some travel insurance plans cover loss of jewellery while overseas.
#13 Fraudulent Credit Card Usage
This pays for financial losses suffered by insured while overseas due to unauthorized charges being made from insured’s credit cards.
#14 Closure of Travel Agent
This pays for the loss of travel related expenses paid in advance as a result of financial collapse of the travel agency in Singapore.
#15 Hijack, Kidnap Benefits & Terrorism Clause
These cover plane hijack and kidnapping while overseas. Typical travel insurance nowadays come with terrorism clause, which covers death or bodily injury suffered by the insured due to terrorism, i.e. use of Nuclear, Chemical and/or Biological weapons while overseas. Do check with the insurer whether they do cover this section.
#16 Quarantine following Infectious Diseases
This benefit pays out for each day of quarantine while overseas or upon returning to Singapore.
Choosing the right travel insurance plan
Travel insurance plans, among the insurers in Singapore, are quite competitive. The more benefits a plan have, the costlier the travel insurance plan will be. Remember there is no one best travel insurance plan in Singapore. Choosing a right plan depends on your budget and whether you are comfortable with the coverage provided. Also, the best plan is the plan that pays out in a timely fashion when claims occur. A trusted financial adviser helping you to administer and speed up the claims process also does wonders.
Insurers offering travel insurance in Singapore: ACE, Aviva, AIG, AXA, Income, Liberty Insurance, MSIG, QBE. You may visit the insurers’ websites for more details of their plans.
For myself, travelling with a peace of mind is a definite. I want to be able to enjoy myself thoroughly and not worry about financial losses should something happen. What about you?
For additional advice or queries, email Winston at firstname.lastname@example.org.
By Tan Ooi Sim Winston, Chartered Financial Consultant
This article was first published in The New Age Parents e-magazine