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Understanding exclusions in travel insurance
Travelling involves risks – that’s a given. Whether it’s the inconvenience of losing luggage or personal items, or encountering more serious incidents along the way, such as accidents or medical emergencies, anyone planning to go abroad should plan accordingly. Researching your destination country prior to departure and making sure you have adequate travel insurance are both advised.
However, what if something happens that you can’t plan for? Something like a natural disaster or even a political event that turns your dream trip into a nightmare? In these situations, it is important to know precisely what your travel insurance covers, and what it does not.
Recent headlines from South Korea sent shockwaves around the region when martial law was declared by the country’s president – albeit for six hours. The East Asian country has a reputation for safety and is a destination of choice for many in Hong Kong, with many attractions that draw in visitors, such as its ski resorts. One of the key concerns for many travellers who were visiting South Korea at that time was how the political developments would impact their travel plans.
In the days following, it was reported that the Hong Kong Federation of Insurers had “warned Hongkongers heading to South Korea that they will not be protected against losses arising from the country’s short-lived declaration of martial law” including coverage for changes to travel plans. This left some travellers unsure about what was covered by their travel insurance, and what was not.
What is typically covered if your trip is cut short
So what do you need to know before you travel abroad? Firstly, as the example from South Korea shows, political upheaval can and does occur without warning. So it’s important to understand fully the extent of your travel insurance so you can manage your expectations.
Usually, your travel policy will cover incidents such as strikes or industrial action, riots, bad weather or natural disasters that lead to the public transportations system being suspended. So, if there’s a typhoon approaching and all flights are cancelled, you will likely be reimbursed for rearranging your travel plans.
Read the exclusions carefully
However, many travel insurance policies specifically mention “War and Terrorism Exclusions” or words to similar effect. Typically, these exclusions cover what you most likely imagine – invasions and civil war, for example. But they also exclude coverage for events like civil commotion if it leads to an uprising, military or usurped power.
In the case of South Korea, the possibility of the imposition of martial law would have fallen into this latter category, and the risks associated with the likelihood of such an event would have been too great for many insurers.
While the chance of encountering civil unrest is thankfully relatively low for most travellers in the region, it is still important to remember that these types of events do happen from time to time, as South Korea demonstrates. Always read the exclusions section of your policy so you are fully aware of what is covered. That way, you can enjoy your trip knowing you aware of all potential outcomes.
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