Mistake 1: Did not contact the Insurer during an emergency

Let’s face it, we all panic during an emergency. That’s why it’s called an emergency, a state for us to justify our panic-driven behavior. And it is during such a time that a calm and collected mind would provide the best solution to get us out of the emergency, with the most minimal damage or loss.

And so it is when you are traveling out there in a foreign land. Mistake number one is of course, not having any proper travel insurance coverage. I’m not saying you should pay through your nose for travel insurance, but unlike traveling domestically, getting stranded in an emergency while traveling overseas can really complicate things. So getting some basic coverage can at least minimize the psychological burden, while it buys you some time to analyze the situation.

However, one of the most common mistake for people who are covered with travel insurance is that they often did not notify their insurer immediately. They do not realize that the travel insurance also comes with advice on how to get the most effective treatment or solution for their emergency. Also, by contacting the Travel Insurer immediately, you can also get the necessary information on what paperwork you must obtain from the relevant authorities to ensure a speedy claim when you are back to your home country. Most people just assume that by filling up a claim form provided by the Travel Insurer, they will get their reimbursement. This is definitely not the case- all claims must be backed by authentic and relevant documents.

Yes, it’s also true that the travel insurance do not cover every emergencies, but one should utilize the facility provided by the Travel Insurer where you can ask for the best course of action.

Mistake 2: Did not submit original documents when making a claim

Most if not all Travel Insurer only accepts original receipts for claim submission. Yes, if you have lost your original receipts, you will have some problem verifying the authenticity of your claim. The alternative is to probably request for a copy of receipt from the relevant party and have them verified by either the party involved. Some Travel Insurer might also allow you to use your original credit card statement, verified by the card issuing bank.

However, by not providing the original bills or receipts for the payments you have made, you are just putting yourself in between a rock and a hard place. Don’t take it as an insult on your character when the Travel Insurer says that they will not reimburse you until you show up with the original documents. No one is saying your dishonest, it’s just that, to proceed with the claim, photocopy of your payment documents are not going to make it through the Claims Department, period.

There is a reason why Travel Insurers insist on original documents, in fact, it is the practice of all Insurer that all monetary claims that is to be reimbursed to the policyholder must be furnished with original and authentic payment receipts. This is to ensure that policyholders do not claim the bills from other Insurers and try to profit from the claim.

So, no matter what policy is being practiced by the country you have traveled to, you must insist on the original copy of all the payments you have made. Do not settle for photocopy or carbon-copy. You have the right to receive original receipts as proof of your payments.

Mistake 3: Did not submit the claim within the stipulated time period

Most people would think that as long as they have the proper documentations in place, they can submit their claim anytime. Nonetheless, it’s a good idea to check the details of your travel insurance policy before making any assumptions on the time given for you to submit your claims. A ‘Notice of Claim‘ clause in a standard Travel Insurance policy might look like this:

NOTICE OF CLAIM: Notice of claim must be given to the Company within thirty (30) days after the Date of Loss/Accident. The Policyholder and/or Insured Person hereunder shall produce for the Company’s examination pertinent documents at such reasonable times and shall co-operate with the Company in all matters pertaining to any loss and/or claims. Failure to comply with this condition may prejudice the claim. Notice of claim given by or on behalf of the Policyholder and/or Insured Person to the Company, or to any authorized official of the Company providing information sufficient to identify the Policyholder and/or Insured Person shall be deemed notice to the Company.

In some cases, it might not be feasible to send in or fax a written notification to the Travel Insurer. Hence, it’s a good idea to always keep the Travel Insurer’s 24 hours emergency assistance hotline number and your travel insurance policy number when you are traveling. Check out this link for a list of Malaysia Travel Insurance Provider’s emergency hotline numbers.

For example, let’s say that you’ve lost your passport the moment you’ve arrived in your destination. Under most travel insurance, the loss of travel documents entitles you for a claim. And it would be another 2 months before you are heading back to Malaysia. Under this circumstance, it would be wise for you to call up the Travel Insurer and inform them about the loss and then have them advise you on the steps you need to take to ensure a speedy claim. If you wait till you come back to Malaysia, which is more than 30 days after your loss, you might need to furnish all the reasons of you not being able to notify the company and all the unnecessary ping-pongs with the Travel Insurer’s Claim Department.

So, to make your life easy, always contact your Travel Insurer whenever you have an emergency, regardless of whether you are entitled for a claim or not.

Travel Insurance Buying Guide

• Part 1: Need for Travel Insurance
• Part 2: Claims You Can Make
• Part 3: Not Covered
• Part 4: The Eligibility
• Part 5: Compensation and Satisfaction

WHAT kind of losses can you claim from your travel insurance?

The coverage and limitations under the policy vary depending on the insurance company. Here are some of the benefits offered in most travel insurance policies:

Medical Expenses: Falling sick while travelling can be a very scary and expensive experience. In case of accident or illness, hospitalisation, medical and surgical expenses and outpatient medical expenses are payable under this benefit.

Some policies provide a daily allowance up to a certain number of days if you are hospitalised for more than 24 hours.

Personal Accident: Compensation is paid in the event of death and permanent total disablement due to an accident. The compensation is paid based on a scale of benefits.

Emergency Medical Evacuation/Transportation: Medical evacuations and emergency transportation can be very costly but in some cases are unavoidable e.g. when the illness is serious and medical attention is not available in that country. Travel insurers normally tie up with international companies providing these services to provide for evacuation, with medical supervision, to the nearest facilities that is able to provide the proper care for an accident or illness.

Repatriation: In case of death, reimbursement will be made to the legal representative for the cost of transporting the remains home.

Trip Delay: This benefit provides reimbursement for the expenses incurred if flight or voyage is delayed for more than a specified number of hours due to reasons beyond your control.

Trip Cancellation/interruption: Policies generally cover non-refundable payments or deposits if your trip is cancelled or interrupted due to unforeseen and unavoidable circumstances. For example, insurers will rely on warnings issued by the government with regard to travel restrictions due to national safety concerns.

Loss of Luggage & Personal Effects: This benefit covers loss, damage or delay of your baggage, clothing, personal effects and money caused by a carrier.

There are usually limits to the claims payable for such losses and these are always specified in the policy.

Travel Documents: In the event of theft or accidental destruction of your passport and/or travel tickets, you will be reimbursed the replacement cost and the additional accommodation and travel expenses incurred while you are waiting for replacements. You must report the loss to the police within 24 hours.

Hijacking: Although hijackings are not so frequent nowadays due to enhanced security, your insurance will provide for specified daily benefits up to a certain number of days if your travel is disrupted due to a hijacking of your plane.

For queries or complaints on general insurance matters, please send your questions to Persatuan Insurans Am Malaysia (PIAM) Complaints Action Bureau at 3rd Floor, Wisma PIAM, 150, Jalan Tun Sambanthan, 50470 Kuala Lumpur. Tel: 03-2274 7395/9, Fax: 03- 2274 5910.

Via NST Travel Online

One important thing to note is the coverage of children, especially how “children” is classified by the policy. Here’s a typical coverage clause on children:

Eligible Children: Between age 15 days and 21 years, unmarried, extendable to 24 years if still on full-time higher education and who are not gainfully employed.

Family members who does not qualify the definition of children in the policy should take up their own individual personal accident coverage.

BENEFITS AT A GLANCE

• Accidental Death and/or Permanent Disablement
• Weekly Benefit for Temporary Total Disablement and Temporary Partial Disablement
• Medical Expenses
• Daily Hospital Income
• Bereavement Allowance
• Purchase of Orthopaedic Equipment
• Personal Liability
• Convalescence Allowance
• Funeral, Cremation and Repatriation Expenses
• Ambulance Fees

GENERAL EXCLUSIONS

• War and related risks Government Regulations or Acts or Authorities Hazardous sports including parachuting, hang gliding, mountaineering, any kind of race (other than on foot or swimming) or trial of speed or reliability
• Suicide, self-inflicted injury or illness
• Pregnancy, childbirth, physical or mental defect or infirmity
• AIDS, AIDS-related complex or sexually-transmitted diseases
• Drug abuse unless the drug is taken in accordance with an authorised medical prescription (but not for the treatment of drug addiction)
• Air travel except as a passenger in a fully licensed passenger carrying aircraft
• Any crew, trade, technical or sporting activity in connection with an aircraft
• Acts of Terrorism