Buying a travel insurance policy

The first question that comes to mind when the subject of travel insurance crops up is: do we really need to buy such insurance?

It is crucial that you buy an insurance policy on the same day you pay the deposit for the trip- Odette Vella

Travelling overseas and visiting new countries are perceived as a positive experience and we often do not wish to ruin this perception by thinking of all the bad things that could happen to us.

Your luggage could get ruined or lost; you could lose valuable items or be robbed; or could fall ill or have an accident. Without a travel insurance policy these problems may spoil your holiday. So the main reasons for deciding to buy an insurance policy are peace of mind and protection against the unexpected.

Legally you are not obliged to buy a travel insurance policy. But what are the consequences if you do not?

Problems may crop up even before you pack your bags and take off. Do you ever think about the money you could lose if just before the holiday you fall ill and are unable to proceed with your holiday plans?

A travel insurance policy would cover this and other unexpected incidents, such as lost luggage, stolen items, accidents and medical emergencies.

Once you decide to purchase a travel insurance policy, you will need to choose the right policy.

To make the right choice, you need to shop around and compare. It is not always a good idea to buy the cheapest policy or to buy travel insurance from the same travel agency or airline you are buying your travel ticket from.

Making sure you are buying a comprehensive policy will put your mind at rest that you are adequately protected should you need to make a claim. Many insurance companies make available a summary and the full terms of their travel policy online.

It is important that you know not only what the insurance policy covers but also what it excludes.

No travel insurance policy will cover you for anything that may happen during your trip. You should therefore read and understand the ‘small print’ that explains what is not included in the policy – many travel policies would have exclusions under each section of the policy and, separately, a ‘general exclusions’ list.

Before buying a travel insurance policy, you should keep in mind the purpose of your trip. If you are going on an adventure holiday that may involve ‘dangerous’ sports, it is important that you inform the insurance company before purchasing the policy to ensure that you are properly covered should you suffer any injuries during such activities.

Be prepared to pay a higher premium for such a holiday.

Pre-existing medical conditions and chronic illnesses are generally excluded under a travel policy.You will be asked to sign a health warranty stating that you do not suffer from any serious or chronic illness, or receiving or awaiting to start medical treatment for any condition.

Unfortunately you will also need to think about what happens if you die while abroad. You need to do this for the sake of your loved ones, not to impose on them unnecessary financial burdens. You should therefore check what costs are covered in case of death and also ensure that repatriation is covered.

If you intend to take any valuables with you, check that these are covered in the policy. Make sure that the limit on your insurance policy is enough. There may be a limit for each item and a maximum limit payable in the event of a claim.

Another important part of the policy that you need to scrutinise is the cancellation and curtailment section. This will list specific circumstances which may cause you to cancel or curtail the trip and for which cover will be provided. So if you cancel your trip as a result of any of these circumstances happening, you can claim a refund of any costs incurred or non-refundable deposits.

This section of the policy starts from the date you make your booking and place the first deposit. So it is crucial that you buy an insurance policy on the same day you pay the deposit for the trip.

The amount of excess you need to pay when making a claim is worth knowing before you choose which policy to purchase.

info@mccaa.org.mt

odette.vella@mccaa.org.mt

Ms Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.