Understanding Travel Insurance

Travel insurance helps to cover financial losses when travelling abroad, which commonly arise from the following:

• Trip cancellation: The insurance plan will reimburse your paid expenses, if you cannot travel for a given reason (e.g., illness, poor weather, COVID-19, and death or injury before travel). Besides the typical reasons, trip cancellations can happen due to travel advisories. When the recent war in Gaza occurred, for example, many Singaporeans were advised against continuing their travel plans to Israel by the Ministry of Foreign Affairs. 

• Travel delay, or other trip postponements and disruptions: If your flight is delayed by a certain length of time (as stipulated in the plan), you may receive a payout to help with unexpected accommodation costs, or other related inconveniences.

• Lost or damaged luggage: If items in your luggage are lost, or damaged during transit, you can make a claim (within stipulated limits) to cover the costs. This can also include the loss of your travel documents. 

• Medical expenses: If you need medical care while abroad, the travel insurance can offset part of the cost. A plan may also allow you to make claims for a period after you’ve returned to Singapore, such as if an injury abroad requires you to seek treatment back home.

• Public indemnity insurance: If you are injured while using public transport abroad, such as on a bus or train, your travel insurance can cover part or all of the cost of your injuries. 

• Medical evacuation and repatriation: If you must be evacuated to a medical facility, or flown back to Singapore for treatment, a travel insurance plan can cover the cost. In the sad event of death, a travel insurance plan can also pay for repatriation of the remains back to Singapore. 

As an added bonus, some travel insurance also provides golfer's cover in the event of a hole-in-one. With written confirmation from the golf course, the travel insurance might pay for the traditional round-of-drinks for everyone. 

How to Maximise the Benefits of Your Travel Insurance

Tip #1: Pick a Plan that Matches your Travel Activities

There are often different tiers of a travel plan, from the most basic level of protection, to the most extensive. Some travel plans may have higher premiums, but provide a wider range and depth of coverage.

To pick the right plan, consider the nature of your travel. If you’re travelling to a less developed country, perhaps for volunteer work or to trek through wilderness, you should consider higher medical evacuation coverage. This is because the country may not have sufficiently advanced medical facilities, increasing the likelihood that you have to be evacuated to Singapore. 

If you expect to use a rented car, such as on a long road trip abroad, you should check if your travel plan will cover damages to a rented vehicle, or provide coverage if it’s stolen. If you intend to use public transport, then check that the travel plan has a payout for injuries incurred while using the bus, train, or other such forms of transport. 

If you expect to travel frequently within a single year - such as if you’re setting up a business abroad, or have a child studying overseas - you should consider an annual travel plan. This can cover you for all trips taken in a given year, and you’ll save money compared to repeatedly buying single-trip plans. 

If you are travelling with young children, you might consider a family plan. This provides more cost-efficient coverage that extends to your entire family when travelling. 

Tip #2:  Shop Around and Compare Plans

It’s possible for two policies to offer the same degree of protection, but cost different amounts. As such, do compare between travel insurance plans, to ensure you’re getting the best deal. 

You may sometimes come across promotions that help you to save on travel insurance. If you sign-up with Singtel Travel Protect right now, for instance, you can get 50 per cent off single-trip plans. You’ll also get a free AirTag. For annual plans, you can get 10 per cent off, plus a free American Tourister luggage.

Tip #3: Read the Fine Print, and Understand Exclusions and Limits

An important point to note is the claim limit on various items. For example, the lowest tier of insurance may still cover the loss of electronics like phones or laptops - but you may find that the maximum coverage is just a few hundred dollars, and insufficient for the item. So if you are bringing more expensive equipment, it may be worth paying for a higher tier of coverage.

Likewise, note that some travel policies do not pay out for lost cash, only for items like electronics, jewellery, stipulated sports equipment, and so forth.

For athletes travelling for sporting reasons, do check if your travel insurance covers your intended activity. Some travel plans will not cover you while taking part in active competitions or tournaments; and some high-risk activities (e.g., vehicular races, Mixed Martial Arts (MMA) or bungee jumping) may not be covered.

Tip #4: Consider a Comprehensive Plan

A comprehensive plan is one that provides maximum coverage, for the widest range of risks applicable to your travel itinerary. 

With the highest tier of Singtel Travel Protect, for example, you have coverage of up to $1 million for medical costs, $15,000 for trip cancellation, and $8,000 for baggage loss. You’ll even have access to a 24-hour emergency services hotline, so you can reach out for help at any time. 

Alternatively, if you’re certain of where you’re travelling (e.g., you have friends and family at the destination, and are very familiar with it), you can still get comprehensive coverage for a lower cost. Using an economy plan, you can still get medical coverage of up to $350,000, trip cancellation coverage of up to $10,000, and baggage loss coverage of up to $5,000.

Tip #5: Check for Overlaps with your Existing Insurance

If you have any existing insurance plans, such as general insurance or personal accident plans, you may want to check if there are overlaps. 

This most commonly happens with professional equipment. If you’re a professional photographer with a high-end camera, for example, it’s probable that you already have a separate insurance policy for your equipment. If this would exceed the protection provided by travel insurance, you may need the highest tiers of baggage protection.

Some personal accident plans, or international insurance plans, may also provide medical coverage if you get injured while abroad. This can lower the coverage you need for medical costs, from your travel insurance.

When in doubt however, it’s best to be safe and have the travel insurance you need. 

Pre-departure Tips and Safety

It’s best to combine travel insurance with smart safety practices, to ensure a smooth trip. Here are a few things to do before you leave:

• Buy your travel insurance as early as possible - Ideally, buy it the same time you book the flight or hotel. The earlier you buy travel insurance, the more protection you have. For example: if you pay for your flight tickets, and then wait a week without insurance, you’ll be unable to claim for trip cancellation if something happens in the span of that one week.

• Keep receipts and photos of your valuables - This will help the claims process later, as you may be asked to produce these if the items are damaged. It also helps to take photos of your luggage: if it gets lost, it is easier for the airport staff to find your luggage with a picture than with a written description.

• Avoid bringing items that exceed claim limits, if possible - If the maximum claim limit on watches is $500, for example, then it’s best to use a watch that’s not more expensive than this. 

• Keep emergency contacts handy  - This doesn’t just include your family. It should also include the number of the Singapore Embassy where you’re flying, and the contact of your travel insurer. Do remember to save your contacts as names and not descriptions (e.g., do not save numbers as “mum” or “brother”), to minimise the risk of scammers taking advantage if you lose your phone.

• Store essential medication in your hand-carry bag or on your person, never in your luggage  - This is to ensure that if your luggage is lost, you will not struggle to find medication while abroad; especially when travelling to a developing country, where it may not be available. 

How to make a travel insurance claim

The claims process varies between insurers, with some being simpler than others. If you encounter any issues, there is usually a seamless claim process available. You can contact the hotline for help.

For most insurers, the hotline will provide information on what details to provide - this usually means your personal particulars, as well as receipts and images of damaged items. Where flight cancellations or lost baggage is involved, you may be required to seek documentation from the relevant airline, at the airport counter.

Being able to contact your insurer on a 24/7 basis can make a vital difference in the success of your claim (as well as making the process much less frustrating).

FAQs about travel insurance

1. What is typically not covered by travel insurance?

As stated above, some travel insurance plans exclude certain high risk or sporting activities. Do check if your intended activity is covered.

Besides this, travel insurance commonly excludes pre-existing conditions. If you have been diagnosed with conditions such as asthma, diabetes, heart conditions, etc., then illnesses arising from these conditions may not be covered. 

Travel insurance may not cover specific destinations, if you venture to those countries despite MFA issuing travel advisories against it (although if you bought your travel insurance before the advisory was issued, you may be able to claim for trip cancellation). 

All travel policies will not provide coverage, if you travel despite the advice of a medical doctor. 

2. Can I get coverage for COVID-19 related issues?

This is possible for some, but not all, travel insurance policies. 

Singtel Travel Protect provides coverage for COVID-19 related issues. This includes medical coverage of up to $150,000 (up to $400,000) for families, and up to $5,000 for trip cancellation. You can also claim up to $100 per day of quarantine (up to $1,400) if it becomes necessary. This is included without extra cost. 

For some travel insurance policies, COVID-19 issues are covered with the inclusion of an extra fee. 

3. How does travel insurance work for cancelled flights?

If your flight is cancelled after you have bought your travel insurance, you can make a claim (up to the plan’s limit) for any irrecoverable losses. This can include payments to your travel agent, as well as payments made to hotels or related accommodations.

Note, however, that you cannot claim for recoverable expenses, such as the amount already refunded to you by the airline in question (if a refund was provided). 

4. What should I do if my claim is denied? 

The appeal process differs for each insurer, but most will have an avenue for appeal. To file an appeal, you should:

• Review the letter or message of rejection, and identify why exactly the claim is denied 

• Contact the insurer, and ask for clarity on what else you can provide 

• Ask for the relevant contact details (email, phone numbers, etc.) for filing your appeal 

• Seek any added information or particulars that were deemed missing, and submit these along with your appeal 

• If possible, ask the insurer for the estimated processing time of the appeal, and follow up accordingly 

   

Getting the right travel insurance plan is a great way to improve your holiday experience. Even if you don’t need to file a claim, you’ll be able to travel with peace of mind. It’s also reassuring to friends and family, who will want the best for you while you’re far away. The best part of travel insurance is that - because you’re often free to choose the tier of protection you need - it’s one of the most cost-effective ways to protect yourself overseas. 

Do consider the above, and remember to buy your travel insurance as early as possible for maximum protection.