CEBU, Philippines - Traveling, whether for business or leisure here and abroad, can be more secured and protected from unexpected events and financial loss with the help of travel insurance.
As more and more people will be jetting off this summer, insuring a protected travel abroad or locally is an essential consideration.
Travel insurance is a non-life insurance product that is designed to provide travelers services for emergency and medical situations, lost travel documents and baggage and protection against cancelled or interrupted trips. It also covers personal liability.
“First and foremost, we can never tell what would happen during our trip,†said Kim C. Segarra, the Cebu branch manager of Malayan Insurance, a non-life insurance company. “As you travel, something unexpected might possibly happen like emergency trip cancellation--that is when travel insurance comes in.â€
Travel risks include worrying about accidents, getting sick and the most common trip cancellation; but this type of insurance repays the non-refundable portion of travel expenses.
‘Not appreciated’
Segarra said some travelers don’t know--and don’t care to know--the importance of getting a maximum travel protection, saying most people would see it as an additional cost to the total travel expenses.
“It’s not really a misunderstood thing, but it’s more of… not appreciated as to its benefits,†the manager told The FREEMAN on the idea that travel insurance is somehow a misinterpreted risk management means.
While others consider it as a luxury travel essential, Segarra stressed that now is the right time to appreciate non-life insurance considering accidents, calamities and other unforeseen misfortunes can possibly occur.
For instance, if a traveler who is enjoying island hopping and skiing meets an accident along the way in his vacation, medical treatment which is not supposed to be included in the travel budget can be very expensive.
In a case like this, he said, a travel insurance provides coverage for emergency medical treatment considering that a traveler might not have enough resources to pay such treatment at the moment.
He also said the cost for availing a travel insurance is relatively cheap and is dependent on the travel days and the place of destination: “Like in our case, if you travel within 5 - 6 days, you are going to pay P600 for the entire duration,†the Malayan official explained.
It also helps the person’s personal finances by reducing the burden and impact of unforeseen expenses, he said.
Segarra also explained that generally travel insurance is a requirement for international travel wherein countries require a visa from the visitor, saying that visa can’t be released unless the insurance is complied.
“While for Asian travel, it’s more of a voluntary--it’s not compulsory,†he said.
Locally, schools that conduct educational tours to other provinces in the country usually seek for travel insurance which falls under the personal accident coverage, he added.
He said non-life insurance’s main purpose is to protect the traveler from the troubles of travel-related accidents.
Travel agencies are also the ones encouraging vacationers to get the insurance: “They serve as intermediary. Whether you ask it or not, they are going to offer it,†he further said. Online travel booking also offers option whether to have such insurance.
Manager Segarra believed majority of the travelers regardless if they travel locally, in Asia or internationally, know about travel insurance.
However, he said, the thing that needs to be worked on increasing public awareness on the importance of having this kind of insurance.
“Especially local travelers,†he added, “as they really need much awareness and education.â€
He advised those people who want to get a travel insurance to pay attention to the details of the insurance’s policies, assuring that this is one way to plan the trip well.
“As long as you have an understanding about the how non-life insurance works, you will understand about it,†he said.