In the first quarter of 2009 more than €1,241 million was spend on international travel by people in Ireland. This is the equivalent of €36 million spent by people in Mayo alone. Ireland’s consumers are exposing themselves to a variety of risks by purchasing travel insurance as a commodity rather than seeking expert advice in relation to the cover, according to Brian Mullins, Irish Brokers Association Council member in Mayo.
“Travel insurance is not the straight-forward financial offering that many people seem to think it is,” Mullins said. “There can be reams and reams of small print and terms and conditions which most people do not read. However what is even more worrying is that so far this year there 11,000 Mayo holiday makers travelled without travel insurance. This is difficult to understand given the importance of travel insurance and the fact that premiums have now hit their lowest levels with prices from just €22 for an annual multi-trip product.”
The IBA has outlined the top five questions which Mayo holiday makers need to ask when looking at travel insurance this year:
What type of cover do you need?
“People need to ascertain which type of cover is best suited to their individual needs,” Mullins continued. “Are they looking for cover for a specific period abroad or is it more cost effective to buy or renew an annual multi-trip policy as they may be fortunate enough to be able to take more than one trip abroad during the next 12 months?”
How much should it cost?
“Some brief checking of prices would indicate that a worldwide annual multi trip policy with winter sports included for a family of two adults and two children should cost no more than €100. This will be cheaper if you choose not to include winter sports or would like to restrict cover to Europe only. A couple in their thirties with no children should expect to pay no more than €70 for the same level of cover. Single trip prices vary depending on length of the trip and destination. These prices tend to start about €10.00 for a week in Europe for a single person.”
In addition, it’s worthwhile for consumers to do their homework as some polices will allow a discount for private medical insurance. If consumers are going to avail of this discount it is imperative that they ensure that their private medical insurance is up to date and all those travelling who are named on the policy have the medical insurance.
What level of cover do you need and should you expect from your policy?
Consumers are advised that at the very least on the travel insurance policy people should expect to get cover for: Medical and repatriation cover, cancellation and curtailment, travel delay, and personal baggage and money cover. “Some policies will include extras should as personal accident cover, others will include motor rescue. There are a variety of other factors to consider also, such as if someone is bringing the car abroad some polices will include breakdown assistance.
What do I need to disclose?
“Non disclosure of a previous medical condition is absolutely certain to land you in trouble in the event you need to make a claim. This will also apply to any medical conditions any immediate family members may have in the event you need to claim for cancellation or to return home due to sudden illness or death of a family member,” said Mullins.
Most importantly: Have you read the small print? All of it!
Mullins continued: “Before purchasing I would advise all consumers to check the claims procedure of the insurance company. Are you required to have receipts for any goods or personal effects that maybe stolen? Will reporting the theft to the local police suffice or should you have a claim form completed before you leave your holiday destination?”
Other questions to consider before purchasing include:
In the event of an illness will you have to pay the hospital and recover the money from the insurer or will the insurer deal direct with the hospital?
Does the insurer have an office in the country you are visiting; in an emergency how will the insurer deal with it, will staff be able to deal with the local emergency services on your behalf?
In the event you need to be brought home will the insurer arrange for all covered to be brought home or will you have to pay for this and then claim for it when you get home?
“We hope that Mayo consumers will see from the points made above that it is hugely important that they look at all aspects of their travel insurance before purchasing and where necessary, take expert advice,” Mullins said. “Travel insurance claims can reach staggering amounts so it is imperative that consumers are covered in the event that something should happen where they would need to make a claim. We have all heard of the horror stories of people who thought they were covered but were not. All of these catastrophes can be avoided by following the advice above and engaging the help of experts.”
