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Travelling offers incredible opportunities for adventure and relaxation, but it also comes with risks that can quickly turn a dream vacation into a stressful experience. That’s where travel insurance comes in – it’s a financial coverage designed to protect against stressful experiences such as risks and financial losses. A survey done by Business Insider in December 2023 revealed that:
- Some North American travellers chose not to purchase travel insurance before their trip
- Many cited previous trouble-free trips as the reason, believing future trips would be just as smooth
- Others felt their trip wasn’t expensive enough to justify purchasing insurance
- However, some regretted not purchasing insurance when faced with unforeseen incidents like illness, theft, or lost luggage
This guide explores why travel insurance is crucial and provides tips for choosing the right policy for your journey.
1. 5 Reasons Why is Travel Insurance Important
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Travel insurance is important because it provides crucial financial protection and peace of mind during trips, helping travellers navigate unforeseen events that could otherwise result in significant financial and emotional stress. Here are some key reasons why having travel insurance is essential:
Protection Against Unexpected Emergencies
Travel insurance safeguards you from financial loss by covering unexpected issues like trip cancellations, delays, or interruptions
Medical Coverage
Accidents and illnesses can occur suddenly. Travel insurance ensures access to medical care, especially in destinations with high healthcare costs
Coverage for Adventure Activities
Policies tailored for adventure travellers include coverage for activities like skiing, scuba diving, or bungee jumping, protecting you during high-risk pursuits
24/7 Assistance
Many insurers provide round-the-clock emergency support, ensuring help is always available when needed
Peace of Mind
Knowing you’re protected allows you to relax and fully enjoy your trip without worrying about potential mishaps
2. 6 Common Types of Travel Insurance
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Comprehensive
Comprehensive policies provide the most extensive coverage, offering protection for trip interruptions, lost baggage, medical and dental expenses, emergency evacuation, 24/7 assistance, and accidental death benefits. This type of insurance ensures travellers are well-protected from a wide range of unexpected issues
Single-Trip
Designed for one-time trips, this policy provides coverage that begins when your journey starts and ends when you return. It’s an ideal option for those who only travel occasionally
Annual Multi-Trip
This policy covers multiple trips within a year, with coverage lasting up to a specified maximum duration per trip. It’s perfect for frequent travellers who need continuous protection without buying separate insurance for each journey
COVID-19
Tailored to address risks related to COVID-19, this insurance provides financial protection for expenses like medical treatment, quarantine costs, and trip disruptions caused by the virus
Family
Designed for families travelling together, this policy offers a cost-effective way to protect all family members under one plan. It typically includes the same benefits as individual policies but at a reduced cost
Elderly
Specifically created for travellers aged 60 and above, this policy addresses the unique risks faced by older individuals, such as increased health concerns and the need for comprehensive medical and emergency support during travel
3. Coverage: Inclusions and Exclusions
Inclusions
- Trip cancellation/interruption
- Travel delay
- Personal effects and baggage delay/loss
- Personal liability
- Personal accident
- 24/7 assistance
- COVID-19
- Medical expenses
- Dental expenses
- Permanent disablement/accidental death
- Acts of God – natural disasters
- Hijacking/terrorism
Exclusions
- Pre-existing medical conditions
- Chronic conditions
- Pregnancy, childbirth or miscarriage
- Psychological disorders
- High-risk activities
- Illegal or unlawful acts
- Alcohol or drug-related incidents
- Civil, political, or military unrest
- Non-travel related illnesses
- Loss of cash/valuables
- Sexually-transmitted disease
- Self-inflicted injuries/suicide
Note: Coverage details, limits, and exclusions may vary between providers and specific policies. Please review the terms and conditions of each policy before purchasing
4. How To Choose a Policy
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You’re probably wondering “How do I go about choosing the best travel insurance in Malaysia?”.
Assess Your Needs
Determine the type of coverage required based on your destination, activities, and trip duration. For example, if you plan to participate in adventure sports, ensure the policy includes coverage for those activities
Check Coverage Limits
Ensure the policy offers sufficient limits for key areas like medical expenses, evacuation, and trip costs to avoid unexpected out-of-pocket expenses
Understand Policy Terms and Conditions
Familiarise yourself with exclusions, such as pre-existing conditions or high-risk activities, to ensure the policy meets your expectations
Understand the Claim Process
Know how and when to file a claim, what documents are required, and how to avoid rejection to make the most of your policy
Compare Policies
Review multiple options to find the best balance of coverage, benefits, and affordability tailored to your needs
Consider Add-Ons
Look for optional add-ons like baggage delay, trip cancellation, or COVID-19 coverage to customise the policy to your specific requirements
Read Reviews
Customer reviews provide insights into the insurer’s reputation, claim process, and customer service, helping you make an informed decision
Evaluate Costs
Balance affordability with comprehensive coverage. Avoid selecting the cheapest option if it compromises essential protection
Read the Fine Print
Carefully review the details to avoid misunderstandings and ensure you fully understand the policy’s terms, conditions, and limitations
5. Travel Insurance Companies in Malaysia
- Allianz General – Allianz Travel Easy, Allianz Travel Care
- AIA Malaysia – Travel PA Plus, SafeTrip (partnership with Touch ‘n Go)
- Etiqa Insurance – TripCare 360 Insurance, TripCare 360 Takaful
- Generali Insurance – Overseas Travel Insurance, Domestic Travel Insurance
- MSIG Insurance – TravelRight Plus
- Berjaya Sompo Insurance – SOMPO TravelSafe +
- AIG Malaysia Insurance – Basic, Standard, Deluxe, Domestic
- Tune Protect Malaysia – Travel Easy, COVID Travel Pass+ (for non-Malaysians only)
- Chubb Insurance – Travel Insure
- QBE Insurance – Travel Protector X
- Lonpac Insurance – Travel Secure
6. Common FAQ
- When should I purchase travel insurance?
You should purchase travel insurance immediately after booking your trip. Purchasing it earlier ensures you’re covered for trip cancellations or interruptions that might occur prior to your departure
- What is travel cancellation insurance?
Travel cancellation insurance covers non-refundable travel expenses if you have to cancel your trip for a covered reason. This can typically be deposits, flight change fees, illness, weather, death and other issues
- How does travel insurance work for trip cancellation?
It works by reimbursing non-refundable expenses when a trip is cancelled for a covered reason.
- Contact your insurer immediately after cancellation
- Submit documentation: airline cancellation notice, proof of prepaid bookings (flight tickets, hotel reservations) or evidence of valid cancellation reason (medical certificate)
- Wait for approval
- Can I claim for a cancelled flight?
Yes, you can claim if your policy includes trip cancellation coverage. Typical reasons include unexpected illnesses or injuries (with medical certificate), severe weather conditions or natural disasters, airline strikes or operational disruptions and death or severe illness of a close relative.
- Is there a time limit on insurance claims?
Yes, usually there is a 30 to 60-day limit for submitting your claims.
- Notify your insurer immediately after the incident
- Provide necessary documents: medical reports, airline confirmation or cancellation or delays, police report
- Can foreigners purchase travel insurance in Malaysia?
Yes, some travel insurance providers offer policies for non-residents or tourists. These policies usually cover medical expenses, trip interruptions, and other emergencies during your stay in Malaysia. However, please make sure to check the eligibility requirements first before purchasing any policies.
