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Coverage for valuable items when travelling overseas

Mrs. Lee took a newly purchased diamond necklace (worth HK$50,000) and earrings (worth HK$20,000) to her daughter’s wedding banquet in Canada last month. She had taken out travel insurance before starting her trip. Unfortunately, when she returned to the hotel after the banquet, she discovered that her earrings were missing.

When she returned to Hong Kong, Mrs. Lee filed her claim with her insurance company together with the police report issued by the Canadian police and the original purchase invoice for the earrings. After a few days, Mrs. Lee was told by her insurance company that she would only receive HK$2,000 as a result of her claim. Why was Mrs. Lee not offered the full reimbursement of HK$20,000?

In Mrs. Lee’s case, according to the coverage of her travel insurance policy, although the maximum coverage for loss of baggage was HK$20,000, the maximum coverage for any single article or pair or set of articles was HK$2,000. Therefore, as Mrs. Lee’s earrings were less than 1 year old and no depreciation was deducted, she was reimbursed only with the maximum article limit of HK$2,000.

How can customers get full cover when they travel overseas and need to take valuable items such as jewellery with them?

To protect property that is to be carried away from the home, customers are advised to extend the Worldwide All Risks section of their home contents policy by paying an additional premium, so that these items are covered irrespective of whether they are in or out of the home. With regard to precious items such as jewellery or valuable watches, customers are advised to make a list of these items and their values and to take out specified personal possessions cover, so that all items will have comprehensive coverage.

Learn more about travel insurance plans.