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Understanding Travel Insurance


Common coverage

A wide range of travel insurance products are available in the market, but the coverage of the products may vary from policy to policy. In general, common coverage includes the following:

Personal accident

The insured person will be paid cash compensation in a lump sum in the event of accidental death, permanent disablement or severe burns during the journey.

Medical expenses

Medical expenses cover reasonable and necessary medical expenses for consultation and treatment by a local registered medical practitioner, including out-patient and in-patient care, resulting from the insured person's accidental injury or illness during the journey.

If the insured person seeks medical treatment abroad, reasonable and necessary medical expenses arising from follow-up consultations, including physiotherapy and Chinese medicine treatment, for the same accidental injury or illness are also covered within a specified period (e.g. 90 days) after returning to Hong Kong. There is a maximum daily limit or maximum limit per journey for each medical benefit item.



COVID-19 protection

Nowadays, many travel insurance policies in the market provide coverage for COVID-19. The insured person and accompanying family members or travel companions may be protected in the following circumstances:

  • Trip cancellation due to COVID-19 contraction before departure (e.g. irrecoverable expenses for accommodation and transportation);
  • Trip curtailment due to COVID-19 contraction during the journey (e.g. irrecoverable or additional expenses for accommodation and transportation); and
  • Receiving immediate local treatment due to COVID-19 contraction during the journey (e.g. medical expenses and a daily hospital cash allowance).

Some policies also provide protection for the insured person after returning to Hong Kong:

  • If the insured person was diagnosed with COVID-19 within a specific period (e.g. 7 days) after returning to Hong Kong, any related medical expenses will be covered.

Note:

  • Some insurers may require the insured person to fulfil the entry rules and conditions, including vaccination requirements, both of Hong Kong and the travel destination(s) before departure to enjoy the benefits provided.

The definition of an infectious disease or pandemic, as well as their related policy terms, varies from insurer to insurer. It is the best for policyholders to contact the relevant insurer to ensure the coverage details before taking out a policy.

24-hour emergency assistance service

Emergency medical evacuation

  • Travel insurance generally covers emergency medical evacuation expenses that are the result of serious injury or illness to the insured person during the journey. The medical team of the insurer's authorised emergency assistance service provider will consult the attending physician to assess whether the insured person is medically fit to be evacuated or repatriated. The transportation method may include ambulance, plane, rail or other appropriate means of transport, depending on the situation. 

Repatriation of mortal remains

  • If the insured person unfortunately passes away, the insurer will cover the reasonable cost of repatriation of mortal remains or ashes by the insurer’s authorised emergency assistance service provider.

The insured person should note that the cost of the emergency evacuation and repatriation will not be covered if such services are not approved or arranged by the insurer’s authorised emergency assistance service provider. Policyholders should carefully read the policy terms and conditions to be sure they understand the details of the relevant services.

Other assistance

  • In addition to a 24-hour emergency assistance hotline service, assistance services may include arranging for an immediate family member to make a compassionate visit or handle related matters, or the return of unattended children to Hong Kong, reasonable and necessary accommodation and travelling expenses, a deposit guarantee for hospital admission, a lawyer and an interpreter referral.

Compassionate death benefit

This benefit will be provided to the legal personal representative or designated beneficiary of the insured person in the event of death as a result of serious injury or illness during the journey.

Trip inconvenience

Trip delay

In the event of a trip delay due to adverse weather, a natural disaster, industrial action involving a public common carrier, mechanical and/or electrical breakdown of arranged public common carrier airport closure, the insured person can generally claim a cash allowance or additional accommodation and transportation expenses incurred according to the specific hours of delay (e.g. 6 hours or more) stated in the policy. 

Trip curtailment

The insured person can be reimbursed for irrecoverable deposits or prepaid expenses (e.g. accommodation, transportation and tickets to missed events) or additional air ticket expenses in the event of trip curtailment (e.g. for earlier-than-expected return to Hong Kong) under some circumstances, which generally include:

  • Industrial action involving a public common carrier;
  • Adverse weather, a natural disaster or an outbreak of an infectious disease; or
  • Death or serious bodily injury or serious illness of the insured person’s immediate family member, close business partner or travel companion.

Trip cancellation

The insured person can be reimbursed for irrecoverable and prepaid expenses for the journey (e.g. accommodation, transportation and tickets to missed events) in the event of trip cancellation within a specific period before departure under some circumstances, which generally include:

  • An outbreak of industrial action involving a public common carrier at a planned destination, a natural disaster, adverse weather or an infectious disease outbreak, etc. within a specific period (e.g. 1 week) before departure;
  • Death or serious bodily injury or serious illness of the insured person’s immediate family member, close business partner or travel companion;
  • Serious damage to the insured person’s principle home in Hong Kong arising from fire, flood or burglary, which requires the insured person’s continued presence in the premises before departure; or
  • The insured person being summoned as a witness or for jury service.


Outbound travel alert coverage

Nowadays,  most travel insurance policies provide coverage for Outbound Travel Alerts (OTAs). If the travel insurance is purchased before departure, and the trip is cancelled due to the issuance of a Red or Black OTA for the travel destination (e.g. 1 week before the scheduled departure) by the HKSAR government or the curtailment of the trip due to the issuance of a Red or Black OTA during the journey, in general, the insured person can receive partial reimbursement, depending on the relevant clauses in the policy. However, no reimbursement will be provided if the travel insurance is purchased after the issuance of the OTA.

Baggage delay

Insured persons can be reimbursed for the incurred costs of an emergency purchase of essential items (e.g. clothing and personal care products) if their personal baggage is delayed for a specific number of hours (e.g. at least 6 hours) after their arrival at the travel destination.

Personal property

Personal belongings and money

  • This covers the loss or damage of the insured person’s personal belongings due to an accident during the journey. Some policies classify personal belongings into categories and determine a benefit limit for each category, but not all personal belongings are included in the coverage. For example, contact lenses, and fragile or brittle articles may be excluded. Policyholders should therefore read the policy terms and conditions carefully.
  • This covers the loss of personal money (e.g. cash, bank cashier’s order and cheques) due to theft, robbery or burglary during the journey.

Travel documents

  • This covers the cost of replacing the insured person’s travel documents, including passport and Hong Kong identity card, which are lost due to theft, robbery, burglary or accidental loss during the journey, and reasonable additional transportation and accommodation expenses incurred for the sole purpose of arranging the replacement of the documents to continue the insured trip.

Personal liability

This covers the insured person against claims for legal liability to third parties arising from accidental death or bodily injury, or property loss or damage due to the negligence of the insured person.

Rental vehicle excess

  • This covers the rental vehicle insurance policy’s excess payable by the insured person in the event of damage due to a car accident or other accident, or if a rental vehicle is stolen during the journey.
  • Note that the insured person must purchase a comprehensive motor insurance policy through the rental company. In addition, the vehicle must be rented from a licensed rental vehicle company with a signed rental vehicle agreement.

Other benefits

Some travel policies offer protection in addition to the above common coverage, including home content protection during a journey and additional pet accommodation due to trip delay.Some policies offer free extension of the cover period of insurance (e.g. 10 to 14 days) if the journey is unavoidably postponed or delayed arising out of circumstances beyond the control of the insured person.



The above information is for reference only. For the coverage, exclusions, benefit limit and premium levels of a specific insurance plan, please refer to the relevant policy terms.