Understanding Travel Insurance

General exclusions

Travel insurance generally comes with exclusions that apply to the entire policy or specific benefits. The insurer will not cover losses incurred under specific circumstances. Some common exclusions that apply to the entire policy are:

• A war, rebellion or coup;
• Specific sports (e.g. motor racing) and professional sports or any activities where the insured person would or could earn income or remuneration from engaging in such activities; trekking at an altitude greater than 5,000 meters above sea level or diving to a depth greater than 40 meters below sea level;
• Pre-existing illnesses or conditions, including common chronic diseases (e.g. heart disease) and related symptoms, and natural factors such as weather conditions and earthquakes;
• Pregnancy, childbirth, miscarriage and related complications;
• Suicide or self-inflicted injuries;
• Alcohol or drug abuse; and
• Illegal or unlawful acts.

Some common exclusions apply to specific benefits in travel insurance policies, such as the following:

Exclusions for medical expenses

• If the insured person did not seek a local registered medical practitioner for consultation and treatment in the event of an accidental injury or illness at the travel destination, the follow-up medical expenses after returning to Hong Kong will not be reimbursed, as there would be no concrete proof that the insured person was injured or became ill during the journey and required medical attention.
• Expenses related to the additional cost of a single or private room or charges in respect of special or private nursing at a hospital; and charges in respect of wheelchair, crutch or any other similar equipment.
• Expenses related to cosmetic surgery, eyeglasses and refraction or hearing aids, and prescriptions thereof, except as necessitated by accidental body injuries that occur during the journey.

Exclusions for personal property

• Electronic money (e.g. credit limit of a credit card or stored value of an octopus card), contact lenses, and fragile or brittle articles may be listed as excluded items for personal property protection. Note that many policies in the market provide protection against mobile phone loss or damage, but there is normally a restriction on this coverage. For example, some policies cover the repair cost for a damaged screen, but not the loss or theft of a mobile phone, so it depends on the terms of each specific travel insurance plan.
• Additionlly, insurers will not cover loss of or damage to any baggage or other personal property as a result of the insured person’s failure to take due care and precautions for the safeguard and security of the personal belongings, such as personal property left unattended in a public place. Also the claim will not be accepted if personal property is left in an unlocked vehicle. The loss of relevant property will not be covered.

Exclusions for trip inconvenience

• Trip interruption or cancellation arising from air traffic control by a local government or related authorities.
• Trip interruption or cancellation arising from error, omission or default of any public common carrier or other provider of any service forming part of the booked itinerary, overbooking, bankruptcy or liquidation.
• Loss arising from late arrival of the insured person at the airport or port (except for late arrival caused by events beyond the reasonable control of the insured person).

Policyholders should be sure they understand the excluded items listed in the policy and their definitions to make informed purchase decisions.

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.