Frequently Asked Questions
A) Where do I buy insurance?
i) Directly from the insurance company.
ii) Through intermediaries, such as agents, brokers, sales representatives of travel agencies, and banks.
iii) Other platforms such as online, AXS machines and mobile applications offered by some insurers.
B) Is the sale of travel insurance through travel agencies regulated?
Travel agents can only sell travel insurance if they are certified as Trade Specific Agents (TSA) by the Agents’ Registration Board of the GIA. TSA engages in business where insurance is not its core business. For more information on TSA, you may refer to item 3(ii) of the General Insurance Agents Registration Regulations (available from http://www.gia. org.sg/pdfs/AMF_GIARR.pdf)
Frequently Asked Questions
A) What are the different types or categories of travel insurance?
i) Single Trip: a short term policy covering a specific trip, usually commencing from and returning to Singapore.
ii) Annual Cover: a policy issued for a one-year period covering trips commencing from and returning to Singapore, undertaken by the insured person(s) during the policy year, subject to its terms and conditions.
iii) Individual Plan: a policy covering the policyholder or any other individual person.
iv) Family Plan: a policy covering the policyholder and his immediate family i.e. his legal spouse and their legitimate children. A cap may be imposed on the number of insured persons under a Family Plan policy
B) Are there different types of travel insurance that cover specific locations / geographical regions?
Yes. For the purpose of premium classification, insurers usually divide the world map into different geographical regions / zones. A common classification will be ASEAN / Asia Worldwide.
C) What factors must I consider before choosing a specific travel insurance package?
Your needs and expectations will be the main considerations and may include the following:
i) How frequently do you travel?
ii) Do you travel alone or with your family?
iii) Where are you travelling to? Is there good access to medical facilities and what is the cost of medical treatment? Are you travelling to places that are more likely to have natural disasters or weather which could disrupt your plans for the trip?
iv) Purpose of your trip – is it for business or pleasure?
v) Itinerary – adventure, sightseeing or rest and relax? For example, if you are planning to drive, you might want to select a policy that provides Rental Vehicle Excess cover.
vi) What are your personal expectations of the cover? Besides the usual Personal Accident and Medical Expenses benefits, it is important to consider if you require coverage for emergency assistance and /or evacuation, delayed departure, trip cancellation / curtailment, loss of baggage /travel documents, etc.
vii) What is your budget? It is wise to consider the above factors carefully before deciding to which travel insurance policy to purchase. You may wish to start planning early to allow yourself sufficient time to review and compare the cover and premium that best fit your needs.
Frequently Asked Questions
A) What are the usual main benefits found in most travel insurance?
There is a wide range of benefits offered under travel insurance. These can also vary among insurance companies and by plans in terms of limits / excess, definition and insured perils. Most comprehensive travel insurance would offer main benefits such as Personal Accident, Medical Expenses (overseas and in Singapore), Trip Cancellation and Curtailment, Travel Delay and Emergency Medical Evacuation.
These main benefits are explained briefly below:
i) Personal Accident covers accidental injuries which result in death or permanent total disablement.
ii) Medical Expenses reimburse the cost of medical treatments (inpatient and outpatient) while you are overseas and follow-up treatments when you return to Singapore.
iii) Trip Cancellation and Curtailment (i.e. situations defined as per policy that result in you having to abandon or change your original travel plans) will reimburse you on the non- refundable and irrecoverable portions of prepaid travel expenses, subject to the insured perils of each insurance company.
iv) Travel Delay will pay a cash benefit usually in every block of X hours of delay in the departure of the scheduled public conveyance, subject to the insured perils as defined in the policy wording (e.g. the insurer will pay $100 for every 6 hours of delay).
v) Emergency Medical Evacuation will reimburse the cost of transportation incurred while overseas as a result of serious injury / sickness. It is usually a requirement in the policy that the insured contact the company named by the insurer for assistance, e.g. International SOS or Mondial Assistance.
vi) Loss or Theft of Personal Possessions will reimburse you for the loss of your possessions such as baggage, travel documents and money.
Note: Do note that benefits and scope of coverage might be limited to certain conditions or situations. For instance, the insurer might cover a claim for loss of baggage / personal belonging only if the loss was due to theft or burglary. Hence, it is important to read the policy wording which lays out the benefits, scope, limitations and exclusions of the insurance policy to ensure that the purchased policy meets your needs.
B) What are the main exclusions found in most travel insurance?
Like other insurance products, travel insurance excludes specific risks to mitigate moral hazard and adverse selection, and to lower the price of insurance given the lower level of risks it assumes with the exclusions. Moral hazard refers to the situation where coverage against a loss might increase the risk-taking behaviour of the insured person, since the insured party no longer bears the full costs of that behaviour. Adverse selection refers to the adverse impact borne by insurers when they insure risks that have a higher probability of loss than that contemplated by the applicable insurance premium. For instance, a person travelling to a war zone will want to buy more travel insurance and / or life insurance.
Set out below is a non-exhaustive list of conditions or events that are commonly excluded under travel insurance policies. This means that the insurer will not cover travel claims for loss or liability directly or indirectly caused by or arising from these events:
i) Self-inflicted injuries
ii) Pre-existing conditions
iii) Engaging in hazardous / military / sports activities
iv) Mental or nervous disorders
v) Natural disasters
vi) Radioactivity from nuclear materials
vii) War and civil commotion
viii) Travel to specific countries
Note: Before buying travel insurance, you should always read the general exclusions section in the policy wordings to understand the type of situations that will not be covered.
C) Who can advise me on the different types of benefits that best fit my needs?
There are various channels you can go through to purchase a travel insurance policy. Some people buy the insurance cover with their tour packages through the tour agency, while others may take up the policy through their insurance advisor or buy it directly online / via call centre / mobile applications from the insurer. If the policy is bought through an intermediary, you can request for an explanation on the policy coverage and seek clarification when in doubt. For direct purchases, the insurer typically provides details of the policy coverage for the consumer to read through and understand before he / she signs up. When in doubt, you can call up the insurer for clarification.
The product summaries and policy wordings for the various travel insurance policies are readily available in the respective insurer’s websites. You should obtain product summaries and policy wordings of a few travel insurance policies to compare and understand the premiums, coverages, limitations and exclusions before purchasing the one best suited to your needs.
Frequently Asked Questions
A. Why do I need to buy travel insurance?
Travel insurance provides you with peace of mind in the event of unforeseen circumstances which result in any possible losses before, during and even after an overseas trip. Unforeseen circumstances include cancellation of trip due to serious illness, accidental injury, high medical bills, travel disruption, loss of personal belongings and personal liability. Please see question 4a for more details on the benefits and scope of travel insurance.
B. How do I gauge if the travel cover is sufficient
i) Start with a review of your overall financial circumstances.
ii) Check your current coverage such as your personal health insurance and life insurance to ensure that you are adequately covered.
iii) If you are travelling for official duties or work, please check with your company’s HR
department on the coverage extended to staff on overseas assignments.