Buying travel insurance is often the last thing people do before a holiday. After spending hours comparing airfares and hotels, many travellers simply pick the cheapest insurance policy and move on. Insurance experts said that that could be one of the costliest decisions of the trip.
Many people buy travel insurance only because a visa requires it. But that’s the wrong way to look at it, said Anas Mistareehi, CEO of eSanad.
“The goal isn’t just to meet a visa requirement. It’s to make sure a serious illness, surgery or even a medical evacuation doesn’t turn into a huge financial burden.”
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Pavan Poojary, from Luxury Travels said that many customers ask only one question: “What’s the cheapest policy?” instead of asking what the policy actually covers.
Cheapest policy may not be the cheapest
Saving Dh30 or Dh50 while buying travel insurance may not seem like a bad idea, until something goes wrong. Mistareehi said most travellers compare only the medical cover and baggage benefit before buying a policy.
“But that’s only part of the picture,” he said.
People should also check whether the policy covers emergency medical evacuation, trip cancellation, personal liability and returning home early if an emergency cuts the holiday short. “Those planning activities such as skiing, scuba diving or trekking should also make sure adventure sports are covered,” said Pavan.
He also said: “We often see travellers discovering these exclusions only after they try to make a claim.”
How much medical cover is enough?
One of the biggest myths is that every destination needs the same level of insurance.
“Not true,” according to Mistareehi. “I recommend at least US$100,000 in emergency medical cover, along with medical evacuation and repatriation, regardless of where you’re travelling,” he said.
For countries where healthcare is particularly expensive, such as the United States and Canada, he advises travellers to consider medical cover of US$250,000 to US$500,000.
Current travel insurance plans available in the UAE offer medical cover ranging from US$50,000 to US$500,000, giving travellers different options depending on their destination.
Why are claims rejected?
Many travellers believe that once they have travel insurance, every claim will be paid. That’s not always the case.
“The most common reason claims are rejected is because the incident isn’t covered under the policy,” said Mistareehi.
He said this often happens when travellers do not declare a pre-existing medical condition, take part in activities excluded by the policy, or travel despite medical advice.
Other common reasons include buying insurance after a disruption or illness is already known, failing to inform the insurer quickly, or not keeping the documents needed to support a claim.
“If your baggage goes missing, for example, don’t just leave the airport. Get the necessary report from the airline. The same applies if your belongings are stolen, file a police report and keep all your receipts.”
He added that claims involving alcohol, illegal activities or travel to excluded destinations may also be rejected.
Hospital abroad? Don’t wait
If you are admitted to hospital overseas, your first priority should always be getting medical treatment. But don’t wait until you return to the UAE before informing your insurer.
“Get emergency treatment immediately. Then contact your insurer’s 24-hour assistance team as soon as possible, or ask someone to do it for you,” said Mistareehi.
Providing your policy number, hospital details, doctor’s diagnosis and expected treatment early allows the insurer to coordinate with the hospital and, where available, arrange direct payment instead of asking you to settle the bill yourself.
He also advised travellers to keep copies of medical reports, prescriptions, invoices and receipts, as they may be needed when submitting a claim.
Is comprehensive insurance worth paying extra for?
Many travellers assume comprehensive insurance is expensive. Mistareehi says that’s another misconception.
For a healthy adult taking a one-week international holiday, comprehensive travel insurance from the UAE typically costs between Dh75 and Dh200, depending on the destination, age and planned activities.
Single-trip plans currently start from around Dh76 for standard cover and Dh99 for premium cover, while family plans begin at about Dh190.
For that extra cost, travellers generally get much higher medical cover, better protection if a trip is cancelled or cut short, stronger baggage and travel delay benefits, emergency evacuation, personal liability cover and additional support services.
Pavan said that the travellers shouldn’t treat insurance as just another box to tick before flying. A holiday may last only a week or two.
“Spending a few extra minutes understanding your travel insurance could save you thousands of dirhams when you need help the most,” said Pavan.
Source: Khaleej Times