Travel Insurance

We sometimes tend to get carried away with all the arrangements for a much expected break and leave the most important things (such as travel insurance) to the last minute. Nothing can mess up your holiday faster than lost luggage or an unexpected accident. Having travel insurance won’t prevent things from going wrong, but it can make things much easier if you get in trouble.

A Policy Worth Having

Do I need insurance for travelling?

Spending a bit of extra time to purchase your travel insurance policy might save you a lot of money and some nasty surprises. Suffering an injury in a foreign country or losing your baggage when you go on holiday could completely disrupt your plans and ruin a long awaited break. Shop around to find a policy that suits you and the type of holiday you are planning.

Never go for the cheapest travel insurance but choose that policy which satisfies your travel plans. Check the sum assured you will need to cover any equipment (such as an expensive camera) or valuables you might be taking with you; otherwise you will risk being under-insured. If this happens, any settlement made by the insurance company for a claim will be based on the insurance coverage relative to the replacement cost of the item.

As a cardholder, one may benefit from a travel and purchase protection insurance at no additional cost. It would be wise to download a copy of the policy document from the card issuer’s website before your travels. Check the benefits and conditions of your policies.

A travel insurance policy will usually cover events such as the costs of medical care following personal injury and loss or theft of your possessions, as well as costs that you incur if your travel plans are disrupted. However, no travel insurance policy will cover you for everything that might happen on your holiday. It is therefore just as important to know what’s not covered by a policy, that is “the exclusions”, as it is to know what is covered.

Not all travel insurance policies are the same.

Some policies include 24-hour medical assistance, a help line and private hospital cover, although be careful of “special circumstances” which can apply. Other policies target younger travellers and will cover a broader range of adventure-type activities. Above all, not all policies have the same level of cover.

Shop around to find a policy that suits you and the type of holiday you are planning and never go for the cheapest policy. Ask any questions which you consider necessary to understand the policy.

Making a Claim

What should I do if something happens during my trip?

As the travel insurance brochures will tell you, accidents can happen. And if they happen on your holiday, then you need to know what you are expected to do under your travel insurance policy. Otherwise you risk a claim being denied in part or in full by the insurer.

Here is some information you should keep in mind about making a claim:

1. Check your policy to see if the relevant section for your loss is subject to an excess and check what the excess is. If you have losses under different sections check them all.
2. If you are filing a claim for cancellation of a trip and have had to obtain a VISA, you can still claim the reimbursement of the fee you paid to obtain the VISA. On the other hand, if the VISA is valid for a number of months or years and can be used for future trips, the right to claim reimbursement of this fee is invalidated.
3. You are required to report any losses or thefts to Police authorities in order for a claim to be paid. If the loss or theft occurred in a particular place such as your hotel you will also need to report it to the hotel management. This should be done within 24 hours of your discovering the loss. Keep a copy of the police report to present it to your insurers when you return. You also need to check any deadlines for making a claim with the insurer.
4. If your baggage is lost or gets damaged during the journey, report it at the airline desk before you leave the airport. You will receive a “Property Irregularity Report”. You will need to present this to insurers. Then write to the airline and tell them of your loss within seven days. This applies to any other form of travel i.e. by sea, train etc. Insurers will not be able to meet your claim if you don’t submit a “Property Irregularity Report” for baggage lost or damaged in transit.
5. You need to keep the receipts of any expenses that you incur because of an insured event that you might claim on your return. These could include the cost of replacing essential personal effects when your baggage is lost for more than twelve hours or receipts for the purchase of foreign currency. Remember insurers will require you to substantiate the size of your claim.
6. You should not admit or deny liability for any loss or try to negotiate any amounts.
7. When travelling, carry with you details of the emergency assistance offered by your insurer. ALWAYS take a copy of the policy with you on holiday so that you know what to do if something goes wrong.

Remember: Even though you might have purchased your insurance policy from your travel agent, you must make any claims to the insurance company

Before You Buy a Policy

What should I keep in mind when purchasing travel insurance?

What should I keep in mind when purchasing travel insurance?

• The purpose for which you are travelling. Are you going on holiday or is it a business trip? Does your holiday involve activities such as rock-climbing or sporting activities such as skiing? This is all information which you must disclose in order to be able to ensure that you are covered for any possible losses or injuries you might suffer in participating in such activities. You might be required to pay a higher premium in such instances. If you are attending a particular event as part of a group such as a sport tournament, it might be best to organise a group policy specifically for the event.
• The kind of medical treatment to which you will be entitled if you suffer an injury or illness whilst travelling. Remember to ask about emergency and rescue services particularly if you intend to visit remote areas and whether there are any thresholds to refunds. Think of the least expected possibility such as a toothache! Remember that there is no cover for treatment of any pre-existing medical condition such as any chronic illness like asthma or diabetes. Enquire what happens if you have to stay longer or less than your intended holiday period due to illness.
• You will be required to sign a health warranty stating that you are not suffering from any serious or chronic illness or receiving or awaiting to start medical treatment for any condition. Read it well before signing. Any misrepresentation or failure to disclose any condition will render your insurance void.
• Ask what costs are covered in the unfortunate event of death. Enquire what cover you have for repatriation and burial costs.
• Whether you will need cover for valuables. This term includes items such as jewellery, watches, photographic equipment and sports equipment amongst others. Assess whether you will need to take such items with you and make sure the limit on your insurance policy is enough. There may be a limit for each item and a maximum limit. So take the time to check the value of the items you and any other travelling companions will be carrying. Remember you must keep these items in your hand-luggage and not in an unaccompanied suitcase whilst travelling. Most travel policies define what is considered as valuable item.
• Check on the possibility of covering cash and travellers cheques. Some policies do not give this cover when travelling in certain territories. Remember you will be expected to take good care of your cash while travelling and it is always advisable to keep the cash level to a minimum. Check what rates of exchange will be used in the event of a loss.
• Make sure you understand the cancellation and curtailment cover given under the travel policy. The policy will list specific circumstances which may cause you to cancel or curtail your journey and which are covered. Only in these instances will the policy refund you any non-refundable deposits you had paid in advance. Remember the cover under this section will start from the date you purchase the travel policy and that it is therefore important to take out the insurance policy as soon as you pay any deposit to the travel agent/airline/hotel.
• Enquire what excesses apply to the different sections of your policy. If you have two unrelated claims, two different excesses may apply.
• Are you adequately covered? Ask your insurer to guide you select appropriate cover for the value of your property – the amount insured. Many insurance policies would normally include a condition in your policy (usually under personal belongings) whereby if at the time of any loss or damage your amount insured is inadequate, the amount you may recover will be a proportion of the amount insured to the value of your property at the time of the loss or damage. This means that if you claim for more than you are insured, you are most likely to get a lower amount by way of proportion.

So don’t organise all your travelling arrangements and leave the insurance as an afterthought!

Medical Cover Abroad

What is the emergency number you should dial if you require medical assistance while abroad?

It is imperative that you take a copy of the policy document with you and keep it handy at all times and look out for the emergency number you are to dial in case you need international medical service. It might be the case that the insurance won’t cover you for the medical expenses incurred unless such medical services are contacted immediately upon you needing hospitalisation (or if the condition is serious, soon after hospitalisation) and before repatriation to Malta.

Last but not least, always take with you the European Health Insurance Card (or EHIC) independently of the purpose of your trip. This allows anyone who is insured or covered by a statutory social security scheme of the EEA (any member state of the European Union, Iceland, Norway, Liechtenstein and Switzerland) to receive medical treatment in another member state for free or at a reduced cost, if that treatment becomes necessary during their visit (for example, due to illness or an accident), or if they have a chronic pre-existing condition (for example, in cases of asthma, diabetes, or cancer) which requires care. However, it is important to note that the card does not cover your health care costs while abroad if you are travelling in order to obtain treatment for an illness or injury that you had before travelling. Nor does the card cover you for private sector health care provider. Access http://ehealth.gov.mt for more information about the benefits of EHIC and the terms applicable for the use of this card in public medical facilities.

Do I still need a travel insurance policy if I have a European health insurance Card?

The European Health Insurance Card (EHIC) is complementary to the private insurance but does not replace it. It will never cover the cost of bringing you back to Malta in the event of serious illness, accident or death. Even with an EHIC you may still be faced with large bills to cover your share of the costs in some countries. Therefore a travel insurance policy is highly recommended.

Exclusions and Cancellations

What is excluded in a travel insurance policy?

What is excluded in a travel insurance policy?

Carefully check all the exclusions before you decide on a travel insurance policy. They should be clearly identified in the policy document.  In many travel policies loss or damages suffered in the following circumstances are often excluded:

• You have a pre-existing medical condition which is not advised to the insurer or you travel against medical advice. This exclusion may also apply for any members of your household or any persons with whom you intend to travel or stay.
• You join in “adventure”, “danger sports” or other hazardous activities. “Adventure” activities often include bungee jumping, white water rafting, ballooning, snow skiing and scuba diving.
• You leave your luggage “unattended” in a “public place” and it is lost or stolen.
• Your valuable items such as cameras, sound equipment or mobiles are lost or stolen when left “unattended” in a motor vehicle or put in unaccompanied baggage.
• You exceed the age limit. Some insurance companies will not insure you if you are over a certain age.
• You cancel plans because of a change in your financial circumstances or business obligations

When is cancellation covered under your policy?

Make sure to check what coverage you have under the policy before you actually sign (unless this is offered as an added benefit to a specific debit or credit card). Pay particular attention to when cancellation under your policy is covered and when this is excluded. Don’t assume that your policy covers you for any eventuality that leads to cancellation of your trip. Below we describe typical cancellation scenarios that are covered or excluded under a travel insurance policy.

What may be covered:

• Accidental bodily injury to or illness or death of the insured person, any immediate relative, close business colleague or any person with whom the insured person has arranged to travel;
• You or your travelling companion being summoned for jury service or called as a witness in a Court of Law during the period of insurance;
• Your home becomes uninhabitable following a fire, storm or flood.

What may be excluded:

• Withdrawal from service temporarily or permanently of any ship or aircraft on the orders or recommendations of any port authority or the civil aviation authority or any similar body in any country;
• Pre-existing medical condition or travelling against medical advice;
• The insured person or travelling companion is not inclined to travel, suffering from anxiety or are in financial difficulty.

Some policies may offer additional cover for cancellation as a result of adverse weather conditions. Check with your insurer about such cover and the applicable limits and conditions. Always keep an eye for specific exclusions under a travel insurance policy, such as one-way journeys, winter and extreme sports (unless the last two exclusions are specifically catered for under the policy). Other common exclusions are unattended personal effects (such as luggage), valuables and money.

If luggage is lost or damaged while in the care of a transport company, authority or hotel you must immediately write to them and give details of the loss or damage. If the luggage is lost or damaged by an airline you must obtain a property irregularity report from the airline desk and keep the damaged items, travel tickets and tags as you will need these to file a claim under your travel policy. Insurance companies may also require a written police report when personal belongings are lost or stolen and normally this has to be obtained within 24 hours of discovering the loss. The insured person must provide the insurer, at his/her own expense, with all the detailed particulars and evidence relating to the cause and the amount of the loss, damage or expense.

The extension of cover will depend on the type of policy chosen; the one with the lesser cover (basic policy) will obviously be the less expensive. Insurance companies will usually not make good for the whole amount of the claim and the policy holder will have to bear a part of the cost of a claim himself. This is known as the excess. The amount of excess will vary between insurance companies and even between insurance policies, with the basic policy usually having the highest excess.

There are time limits during which a travel insurance policy will be considered as valid. The period of insurance under the cancellation section starts from the date the schedule is issued and ends when you begin your holiday or journey. The period of insurance for all other sections starts when you leave your home or workplace and ends when you return home from your holiday or journey. Cover applies for the number of days shown on the schedule (which might vary from 3 to 6 months)