Travel insurance: evaluate your coverage before you go for peace of mind

As the anti-epidemic measures continue to be adjusted, the public is gradually resuming outbound travel. According to passenger traffic reported by the Immigration Department last December, the daily number of Hong Kong residents who left the city exceeded 20,000. It is gratifying to be able to regain the joy of travel after a long period of stasis.

Against this backdrop, having comprehensive travel insurance is more critical than ever for travelling with peace of mind. In fact, some travel insurance providers have expanded their coverage in response to the pandemic. If you contract COVID-19, or if the disease leads to cancellation or curtailment of your trip, etc., you will be likely compensated. Reviewing your coverage before taking out travel insurance will definitely go a long way to creating a smooth journey for you.

Currently, many travel insurance products on the market provide coverage for COVID-19. This will usually protect against pre-departure itinerary cancellation or if your itinerary is disrupted in the middle of your travels. As long as the terms listed in the coverage are met, the majority of travel insurance plans will compensate you for unused and non-recoverable travel and accommodation expenses, with the amount often reaching up to HK$50,000. In addition, these travel insurance plans also cover trip cancellation or disruption for immediate family members as a result of COVID-19.

Moreover, suppose you as the insured person are diagnosed with COVID-19 overseas and require hospitalisation. In such a situation, some plans on the market will provide you with a daily cash allowance of HK$500 for a span of up to ten days and will cover your overseas hospitalisation expenses.

One common question is whether or not protection also applies to the un-vaccinated. Some travel insurance plans do not require you to be vaccinated before applying. These travel insurance plans provide the same coverage and benefits regardless of one’s vaccination status.

Although travel insurance offers multiple benefits, customers must also educate themselves about the status of rejected claims. For example, in the past, there have been claims from customers who have unable to cross an international border due to an expired passport, resulting in the cancellation of their trip. Trip cancellation due to passport expiry is not covered by travel insurance.

The above scenario is certainly one to avoid, but it is also worthwhile checking whether flight cancellation, itinerary cancellations, or delays due to weather conditions will be compensated. For example, in the event of strikes, bad weather, natural disasters, etc., which lead to the suspension of public transport services for more than six hours, some travel insurance plans offer HK$250 compensation for such occurrences, as well as compensation for the unused travel and accommodation expenses in the event of itinerary interruptions. In addition, the plans may cover transport or accommodation expenses for new itineraries. Among these benefits, accommodation expenses can be compensated for up to HK$1,000 per day.

Trip cancellations or delays – and the time of the delay – will also have an impact on the claim settlement. Therefore, before taking out travel insurance, you should read the coverage carefully and understand the terms and conditions of the policy so that you can enjoy travelling to the fullest. Last but not least, I wish everyone a pleasant, worry-free journey abroad!