Travelling brings with it the excitement of new experiences, yet it is fraught with its own risks. It can lay bare the fragility of our plans when we find ourselves unexpectedly delayed or facing a medical emergency—putting us, quite literally, out of money if we are not covered. We prepare for our journeys by mapping out where we will go, making necessary reservations, and securing the means to pay for them. Yet how often do we think to prepare for the potential of these plans going awry? Incidents like the recent earthquake in Japan remind us that even the most meticulously crafted itineraries can come undone.
Key Benefits of Travel Insurance
- Flight Delay: Travel insurance often covers expenses incurred due to flight delays, such as meals and accommodation. For instance, if your flight is delayed by several hours or cancelled due to unforeseen circumstances, you can claim these additional costs.
- Baggage Delay: If your baggage is delayed, travel insurance can provide inconvenience payout based on the block of number of hours the baggage is delayed for. While waiting for your luggage to arrive, there may be essential items you may need to purchase and these inconvenience payout from the travel policy come in handy.
- Medical Coverage: The most vital aspect of travel insurance is medical coverage. If you become seriously ill or suffer an injury while traveling, the costs associated with your treatment can multiply rapidly. Medical coverage as part of your travel insurance guarantees that you will receive the treatment you need, without worrying about how you will pay for it.
- Theft: If the unfortunate circumstance arises where you are robbed while traveling, travel insurance can alleviate some of the loss, providing you with some peace of mind if you're robbed while traveling.
- Loss of Travel Documents: If your passport or other essential documents are lost or stolen, travel insurance can assist in the costs associated with replacing them.
Short Day Trips and Travel Insurance
A considerable number of Singapore residents appreciate making quick, day-long jaunts over the causeway to Johor Bahru (JB) or even a ferry to Batam for the likes of shopping, dining, and having a good time. But even such a swift trip can be fraught with dangers.
- Food Poisoning: If you experience food poisoning during your trip, medical attention may be required. The cost of sending a patient back to Singapore via ambulance can be significant.
- Theft: With busy markets and crowded areas, theft can occur easily. Travel insurance can help mitigate losses from stolen items.
- Accidents: Accidents can happen anytime. Having insurance ensures that you are protected from unexpected medical expenses that may arise from an accident.
For these reasons, there is an insurer that offers travel insurance at an hourly rate, making it suitable for short trips.
Annual Trip vs. Single Trip Insurance
When it comes to insuring your travels, there are two basic types to consider: annual trip and single trip insurance.
- Single Trip Insurance: Ideal for the more infrequent travellers. It covers one specific trip and is usually the more affordable option—if you're only going to pay for it once or twice in a year.
- Annual Trip Insurance: Best for frequent travellers including those frequent day trip traveller to JB and Batam. It covers multiple trips in a 12-month period, and because you can sometimes pay it in one lump sum, it can be more economical if you travel about quite a lot.
Consumers should consider their travelling habits when choosing between these options.
The Risks of Choosing Low-Premium Travel Insurance
Choosing the cheapest premium travel insurance can be tempting, but it can result in having no backup plan and gaps in coverage.
- Trekking activities: There may be different definitions of trekking in different policies. For instance, one insurer might provide cover for guided trekking activities up to 4,000 meters, while another would only go as high as 3,000 meters. If your itinerary includes trekking at altitudes above these, you might not be insured.
- Pre-existing Conditions: Most travel insurance plans do not cover health issues that existed before a person bought the plan. So for travellers with pre-existing health conditions, getting travel insurance that will pay for those conditions if they become worse while traveling is crucial. It's best to find a policy that will pay for any treatment of the condition if you need it while traveling, even if the condition was not covered before you left. And yes, these plans are usually more expensive.
- Rental Car Excess: When you rent a car while on vacation—perhaps you're taking the scenic route through Australia or Europe—it's crucial to understand the car rental excess. As with travel insurance, some insurance providers offer coverage for rental car excess. How much they cover varies widely, however. While some policies cover the actual rental car excess charges (which can easily exceed S$5,000), others only reimburse a mere S$500.
Conclusion
Any traveller, no matter the trip's duration or destination, should give proper consideration to travel insurance. The policies protect against various situations that could occur while travelling, from cancelled flights to hospital stays. These policies are especially useful when a situation could lead to a loss you can't easily absorb. Even if you can float the loss of your luggage for a few days while you're in Tokyo, can you pay the hefty amount necessary to cover a medically evacuated journey back to Singapore because a sudden illness has struck you in Peru? Comprehensive policies offer peace of mind that you're covered for a wide variety of situations that might crop up unexpectedly.
