There is something exciting, even ethereal about traveling – right from the planning and booking stages.
So, when a concerned friend or family member asks if you’ve taken out travel insurance, you can shrug it off and say, “But what could go wrong?”
You will not believe some of the things that have happened to people while they are away on a trip.
Why you need travel insurance
From unexpected medical expenses that can open you up to financial strain if it happens in a country with a stronger currency than the Rand, these are just a few examples.
What about luggage cover for the case when all your luggage mysteriously disappears on the airline, and your travel gear and personal belongings need to be replaced without delay?
Buying a travel insurance policy, as standard before departure, offers you and your fellow travelers a level of financial security and travel assistance in the event of an emergency.
Furthermore, it is also intended to protect you from expenses that may not be enough to cover.
The problem with insurance is that the terms used to describe what is covered and how the policy works are often difficult to understand.
Travel insurance requirements are complex
The South African Aviation Center shares seven of the most difficult insurance terms, what they mean and how these situations can play out in real life.
1. What does responsibility mean?
Here, the policy covers any damage you accidentally cause to property (such as your rental car) or other people (known as “third parties”).
Having this in place protects you in unforeseen circumstances from, for example, losing walking on the stairs and grabbing onto (unfortunately) a rather valuable painting and bringing it into a state of disrepair.
This incident, which actually happened to a client of Travel Insurance Consultants (TIC), has gone down in the history books as an example of exactly what can happen – and how much is beyond personal control.
Also read: Top travel destinations for South Africans in 2023, according to experts
2. What is excess?
This is the cash amount that will be deducted from the full value of your claim before it can be settled. You may be familiar with the term “excess” from your auto insurance policy.
The way it works is that if you need to make a claim from your travel insurance policy, the excess is the trigger amount before it will pay out; sometimes called “reduced”.
In a typical example, two hard-working women – who also travel and pack extremely light – went on vacation and lost their luggage.
They made a claim under the “Baggage and Personal Belongings” section of their insurance policy, but felt it was unfair that the insurance company charged the excess twice – instead of just once – because they only brought one standard-sized suitcase between them.
The insurer wins when this complaint goes to the ombud, as per the terms and conditions of the policy:
“Claims will be subject to excess. You will be responsible for paying the first part of the claim up to the excess value each insured person for every incident, in every closing part.”
3. What diseases do you have?
This is a term that can be found in advance through medical aid, gap cover or medical insurance providers.
This refers to an injury, illness or medical condition that caused you to experience symptoms, take medication and/or seek treatment before you purchase travel insurance for your trip.
What we recommend is that travelers read the policy’s definition of “pre-existing condition” and gauge – with the help of a general practitioner, if necessary – whether they have a medical history that fits the definition.
Disorders that tend to fall into this category include heart conditions, high blood pressure, previous strokes, mental illness and/or HIV infection.
If you are pregnant and considered high risk for any reason, or are in the final stages of pregnancy, this may cause insurance companies to sound the alarm.
These studies show that the following medical emergencies occur frequently for people traveling abroad: fractures due to falls, cardiovascular events, trauma, and respiratory distress.
So, if you have a pre-existing condition that can cause this to happen; or make it more likely to transpire, be sure to admit this to the insurance company and pay the extra cover required to put the heart if special care is needed.
Note: a coconut falling on your head and causing a concussion while sunbathing on a tropical beach is not a pre-existing condition.
4. Cancellation and curtailment
The former refers to situations where you cannot start your planned trip for any reason.
Curtailment cover helps you cover costs associated with having to cut short a holiday, such as for work or illness.
Even if you need a new flight to get home early.
5. Car rental excess waiver
Included in this policy are certain excesses that must be paid in the event of a car rental insurance claim.
This can prove especially handy when you are traveling in Rands in Europe or the United States, and the exchange rate is a deciding issue.
Pay upfront on your travel insurance policy and, in the event of a car accident or other vehicle-related claim, make sure there is no excess to pay before your insurance company coughs up the damages.
Heard from childhood when a honeymooning couple stopped to take in the view of the beautiful side of the French Riviera, and a herd of cows caused damage to the paintwork of the hire car after just a few licks?
The excess for paint repairs would be exorbitant if they didn’t have a strong excess waiver.
See also: Family travel: Five must-experience travel routes
6. Sports included
This is a policy for the young, fit and adventurous where the sporting events you want to participate in overseas are automatically covered.
Relevant sports activities include mountaineering, rugby, motorcycle touring, professional sports and more – when you “Add a Sport” in the cover option in the application.
When registering this item, note that professional tennis is likely to make materials, but hang gliding – no.
For obvious reasons!