When you get a travel insurance policy, you are paying a premium to the insurance company in exchange for coverage against particular events for a set period of time (i.e. your travel period).
The majority of travel insurance works on a claims-and-reimbursement basis. You must submit a claim to your insurance company, which will refund you for the amount covered. You must give proof of the event you are claiming for in order to file a claim (delayed flights, lost luggage, medical treatment receipts, etc). The insurance company will then verify it and reimburse you based on the coverage provided by your bought travel insurance policy.
Unforeseen circumstances are covered by travel insurance. The timing of your travel insurance purchase, on the other hand, is critical.
Assume you’ve planned a trip to a specific location and have made all of the necessary arrangements and payments, including travel insurance. Suddenly, it’s announced that a tropical storm will strike your location during your vacation dates, causing flight cancellations and burning all of your reservations and bookings for the trip. However, because you purchased travel insurance prior to the storm’s announcement, you will be covered for all holiday expenses. You will not be covered for any storm-related losses if you purchased travel insurance after the storm was declared.
How Much Does Travel Insurance Cost?
Many individuals believe that travel insurance is prohibitively expensive or that it should only be purchased when traveling to a foreign nation. However, travel insurance isn’t as expensive as most people believe, and the cost is determined by numerous criteria such as the quantity of coverage, duration, and location. Individual or family travel insurance options are also available.
Malaysia offers a variety of travel insurance products with varied levels of coverage to suit the needs of various sorts of travelers. As a result, premium prices vary widely, starting at RM18.00 (Allianz Travel Care) for solo travel insurance and up to RM110 for family travel insurance (AIG Travel Guard Standard). Annual travel insurance policies are also available, starting at RM288.00 (SOMPO Travel Plus Elite) and rising.
Why Should I Get Travel Insurance?
Travel insurance acts as a safety net, ensuring that you are financially protected if something goes wrong while you’re on the road. With travel insurance, you can get financial assistance for things like buying a new flight ticket or medical care in a foreign country, which can be expensive. When all is said and done, travel insurance provides significant benefits that much outweigh the rates you pay.
Lonpac Travel Secure Gold travel insurance can compensate you for your missed trip, as well as the costs of purchasing replacement tickets and even hotel accommodations until the next available departure! Furthermore, travel insurance may protect you as well as aid you wherever you are in the world. For example, Etiqa TripCare 360 Gold offers Claims Assistance through its 24-hour Travel and Medical Assistance Helpline.
It’s worth noting that the benefits covered by your travel insurance policy may differ depending on the plan. As a result, make sure to pick a plan that meets your requirements, budget, travel plans, and destinations. Spend some time reading the fine print and coverage definitions (policy terminology) until you have a clear understanding of what you are insured for.
How to Choose A Travel Insurance Plan?
The technical jargon contained in insurance contracts can be intimidating and perplexing, so here’s a breakdown of some of the more regularly used terms:
What Is Single Trip Travel Insurance?
Single trip travel insurance policies would be the best alternative for you if you only go on vacation once or twice a year! Travel insurance for a single trip covers you for the duration of your vacation. Insurance companies normally charge in increments of one to thirty days, such as one to five days, six to ten days, and so on. Some insurance are only good for 30 days, while others can be extended in one-week increments.
What’s even better is that single trip travel insurance is the most cost-effective solution to protect yourself financially. Instead of going for the lowest option, make sure it provides adequate coverage for your vacation and valuables.
Would I Save More Money with An Annual Travel Insurance Plan?
Yes, if you are a frequent traveler or have a job that needs you to travel frequently, you can save money on travel insurance. Some annual insurance contracts provide discounted rates if you just need coverage for a single location. Instead of purchasing single-trip travel insurance each time you arrange a vacation, annual travel insurance plans provide coverage for an infinite number of journeys throughout the year.
Is Overseas Travel Insurance Policies More Expensive?
Yes, the price of travel insurance is significantly dependant on your destination.
Domestic travel insurance covers travel between Peninsular Malaysia and East Malaysia, whilst international travel insurance is divided into areas. For example, Region A can comprise a group of Asian countries, whereas Region B would include all other countries on the planet. Due to the greater distance, premiums for coverage in Region B would naturally be higher.
It is crucial to note, however, that not all countries in the world will be covered. Insurers reduce risk by removing countries currently experiencing civil war or other kinds of social instability from coverage.
Are Family and Individual Packages Priced Differently?
Yes, a family package is normally more expensive than an individual package, but it is also less expensive than purchasing individual policies for the entire family.
Unlike the Individual package, which only covers one person, the Family package covers the insured person, his or her spouse, and/or their children. There is no limit to the number of children that can be covered, but the Family Package has a maximum coverage amount (Etiqa TripCare 360 Platinum).
Will My Parents and Immediate Family Members Be Covered too?
If you are planning a large family vacation, you might consider purchasing a family package or a multiple traveler package. Senior Citizens aged 70 and up are covered by several travel insurance policies, such as Pacific Insurance Travel Pro Insurance Silver.
How About Students Who Travel to Study Abroad?
There are specific travel insurance options for Malaysian students studying abroad. AIG Student Assist Superior travel insurance, for example, provides comprehensive coverage for students traveling abroad to further their education. Aside from basic coverage for personal accidents, medical expenses, and travel hassles, travel insurance for students also provides pay-outs to cover the costs of education fees in the event that an education sponsor dies or becomes disabled.
A student travel insurance plan provides at least an umbrella of coverage in the event of an emergency and while they wait for their parents to assist them.
What Does Travel Insurance Cover?
1. Death by accident or total and permanent disability
Accidents may and do occur when on vacation, and they can be traumatic, especially if you are visiting a strange place.
Yes. He should be eligible for a one-time lump sum payout as well as coverage for all of his hospital expenses. His travel insurance will also cover any hotel cancellations, supplementary flight tickets, and other last-minute changes to his itinerary.
John has returned to his home country of Malaysia. Will his medical appointments be covered by his travel insurance?
Unfortunately, the answer is no. His travel insurance may not cover the price of these medical treatments in Malaysia because of the one-time lump sum payments he got. If John has obtained local medical insurance in addition to his travel insurance, he will be able to file a medical insurance claim.
What if John has both Travel Insurance and Medical Insurance for International Travel? Is it possible for him to get compensated twice for his disability?
To begin with, receiving insurance payment for the same item/event from many insurance policies is termed insurance fraud. John will only be able to make claims on the first insurance policy he purchased.
Travel Medical Insurance is a sub-section of a travel insurance policy that only covers medical expenses incurred while traveling as a result of accidents or diseases. It does not cover lost luggage, aircraft cancellations or delays, or other travel difficulties that would be covered under the other elements of a travel insurance policy. Travel Medical Insurance is inexpensive, although it is rarely supplied on its own in Malaysia.
Medical Expenses Arising from Accident or Illness
Traveling increases your chances of being sick owing to variables in temperature, environment, diet, and water. Your travel insurance will cover your medical expenses if you become critically ill or injured while visiting another nation. Additionally, some travel businesses offer round-the-clock, 24-hour telephone support. You can use this number to find out where the nearest medical institution is, as well as other information.
It’s worth noting that most travel insurance policies work on a reimbursement basis, with a “pay first, claim later” philosophy. This means you must first pay for your medical expenses before filing a claim with your insurance carrier once you return to Malaysia. However, some travel insurance policies, such as Etiqa TripCare 360 Takaful, provide cashless hospitalization. Cashless hospitalization means that the insurance will issue a guarantee letter after a single phone call to their hotline, allowing you to be admitted to the hospital without having to spend anything out of pocket. Every insurance coverage is different, so make sure you read the fine print.
Emergency Medical Evacuation and Repatriation
If you become extremely ill or injured while traveling abroad and need to be transported to the nearest hospital via helicopter or other emergency transportation owing to a lack of suitable care and facilities, you’re looking at a large medical expense. However, if you obtain a travel insurance policy that includes such coverage, the cost will be covered. However, it is critical to check the conditions of your insurance policy, as most travel insurance policies, such as AXA Affin Smart Traveller Annual Gold, demand that the insurer be called in advance, and the insurer also reserves the right to choose which hospital you will be carried to.
Unplanned Travel Inconveniences
We’ve all experienced how a lost or delayed luggage can ruin a vacation! You’ll need to buy extra clothes, toiletries, and other items if your checked luggage is lost for more than a day. That’s a lot more money you’ll have to spend on unplanned expenses, and you’ve probably already set aside this money for tours and food!
Travel insurance is designed to financially cover any travel-related problems, such as lost luggage, lost travel documents, cash, credit cards, and even loss of deposit due to hotel cancellation or overbooking. Aside from that, you’ll be covered if you miss your flight or require additional coverage for your rental car (Allianz Travel Care).
Emergency Trip Cancellation (Pre-Departure)
If you get a terrible viral virus a day or two before your vacation, you’ll have to cancel it. Pre-departure trip cancellations are not covered by all travel insurance policies. Some insurance policies, such as AIG Travel Guard, may require you to see a doctor before canceling your trip. If you become ill on the day of departure, you must see a doctor within 72 hours after the cancellation. Insurance companies will always demand proof that the insured individual had exhausted all other possibilities before deciding to cancel the trip.
What Doesn’t Travel Insurance Cover?
There is always a list of exclusions that are not covered by travel insurance. We’ve identified some of the situations in which travel insurance is unlikely to cover you:
The most prevalent exclusion in most travel insurance contracts is this one. Simply put, you will not be covered for any present health issues. Take, for example, a rock-climbing expedition if you already have a cardiac condition. If you have a heart attack while rock climbing, any treatments you receive as a result of the heart attack will not be covered by your travel insurance.
Attempts at suicide and intentional self-injury are not covered by travel insurance policies. Due to the exclusion for care in the case of suicide or self-injury, insurers have the discretion to refuse to pay for hospital or medical expenditures. On a more serious side, there are different suicide prevention programs available, such as the Befrienders, who are prepared to listen to you out and help you cope with your issues.
Any illness or injury caused by the intake of alcohol or drugs will not be reimbursed. If medications are not taken in line with therapy prescribed by a certified medical practitioner, the insurer maintains the right to refuse coverage in cases of drug abuse.
If you get a sexually transmitted disease, either directly or indirectly, while traveling, your travel insurance carrier will not pay for any subsequent medical expenditures.
Complications stemming from pregnancy, childbirth, or miscarriage are often not covered by most travel insurance policies. However, certain insurers, like as AXA Affin Smart Traveller Plan VIP, will cover for certain expenses, such as miscarriage treatment as a result of an accident injury.
Most travel insurance policies exclude mental and emotional disorders. These disorders, such as Bipolar Disorder, are frequently labeled as pre-existing medical conditions, indicating that they would not be covered.
This is readily mistaken for terrorism and hijacking, which are both covered by most travel insurance policies. The insurance company will not pay any losses caused by civil, political, or military turmoil, according to this exclusion.
How To Make A Travel Insurance Claim?
Keep in mind that most travel insurance policies work on a reimbursement basis. To be compensated for your loss or damage, you must submit proof of your losses, which will be validated by the insurance company, and you will be reimbursed according to the terms of your bought travel insurance policy.
However, you must inform your travel insurance company’s 24-hour hotline service as soon as the issue occurs.
How Do I Find the Right Travel Insurance Policy?
Travel insurance policies differ depending on the plan. Focusing on certain goods that are vital for your travels is a fantastic place to start (apart from the standard coverage a travel insurance policy would provide). For example, if you plan to hire a car for a lengthy road trip, you may want to consider purchasing a travel insurance package that includes car rental excess costs to avoid having to purchase this coverage individually.
After that, you can choose how much of a premium you want to spend. With such a wide choice of policies to choose from, you’ll be able to find one that strikes the ideal combination of price and coverage. As a result, the cost of trip insurance is totally up to you.
Check out our travel insurance website to locate and compare the finest travel insurance plans available in Malaysia. We have an extensive selection of travel insurance policies available, categorized by premium price. Furthermore, we provide you with all of the information you require, as well as the chance to apply for travel insurance right away!
Can I Cancel My Policy?
Travel insurance can normally be canceled at any time by giving the insurer written notice. The termination will take effect on the later of the date the notice is received or the date specified in the notice. There are rarely any reimbursements, but they are subject to the terms and conditions of the travel insurance policy.
Travel Insurance Glossary
Certificate of Insurance – A certificate issued following payment of the required premium.
Premium – A payment that serves as evidence of the insurance coverage offered by this policy.
Unemployed and unmarried person under the age of 18 or up to 23 years old if enrolled full-time at a recognized institution of higher learning.
Any regulated registered public transportation service for persons who travel as fare paying passengers in vehicles specified below is referred to as a common carrier.
a) Airport limousine, bus, coach, taxi, ferry, hovercraft, hydrofoil, ship, train, tram, or underground train; and b) Airport limousine, bus, coach, taxi, ferry, hovercraft, hydrofoil, ship, train, tram, or subterranean train
b) Any licensed airline’s certified fixed-wing aircraft or Chartered Flights, as well as helicopters that operate exclusively between established and recognized commercial airports or registered commercial heliports.
Any contagious illness outbreak defined by the World Health Organization (WHO) or the Malaysian Ministry of Health as an epidemic.
The term “family” refers to you, your legal spouse, and any number of your legal children who are all covered under the same Certificate of Insurance.
Hijacking – Any form of unlawful violence or control of public transportation by a member of the regular crew.
Home Contents – All personal possessions, household furnishings, and fixtures owned by you, your family, and any domestic worker who is permanently residing with you (not your landlord). Deeds, bonds, bills of exchange, promissory notes, cheques, travellers’ cheques, money securities, documents of any type, cash, and currency notes are not included.
Illness This term refers to being unwell while traveling and excludes any pre-existing medical conditions.
Your spouse, child, son-in-law, daughter-in-law, parent, parent-in-law, grandparent, grandparent-in-law, grandchild, brother, sister, brother-in-law, sister-in-law, brother-in-law, sister-in-law, brother-in-law, sister-in-law, brother-in-law, sister-in-law, brother-in-law, sister-in-law, brother-in-law, sister-in-law
Injury – When you are hurt as a result of an accident, this does not include any illness or medical disorder.
A severe physical loss of a hand at or above the wrist or a foot at or above the ankle is known as limb loss.
A qualified, licensed, and registered western medical practitioner who practices within the boundaries of his or her licensing and training in the geographic region of practice.
Mountain Sickness – This is a pathogenic impact of high altitude on humans produced by acute exposure to low partial pressure of oxygen at high altitude, also known as Acute Mountain Sickness (AMS), altitude Illness, hypobaropathy, or soroche.
Natural disaster – A natural disaster is an occurrence that occurs as a result of natural causes and has disastrous repercussions.
Overseas travel entails visiting any destination outside of Malaysia, whether for pleasure or business.
Permanent Total Disablement (PTD) is defined as an injury that lasts for at least 12 months from the date of the accident and completely disables employment or any prospect of rehabilitation.
Pre-Existing Medical Condition A condition for which you have had medical treatment within the last 12 months of your travel insurance policy’s effective date.
Serious Injury or Serious Illness – This refers to when you require hospital care and are deemed unfit to fly or continue on your planned trip by a Medical Practitioner.
Trip – The journey from your home or business (whatever comes first) to the Malaysian airport for your flight to your desired location. Remember to begin your journey no later than 24 hours before the scheduled departure time and to end it on the first of the following events.
The Certificate of Insurance’s defined Period of Insurance expires;
Travel Agent – A Malaysian travel agent who is licensed and registered with the appropriate authorities.
The Insured Person(s) listed on the Certificate of Insurance are referred to as you/your/Insured Person(s).
This article should have assisted you in learning more about travel insurance and locating the finest travel insurance in Malaysia.
Do I need travel insurance for Malaysia?
You must exhibit a valid passport or other recognized travel document proving that you have spent the last 14 days in Singapore or Malaysia.
A valid immunization certificate, a negative pre-departure Covid-19 test result, and a mobile device with the MySejahtera app are also required.
Due to Covid-19, you must present physical or electronic proof of travel insurance with a minimum coverage of RM100,000 for medical care and hospitalization charges if you are a short-term tourist to Malaysia. A return ticket will also be required.
Is there a travel insurance that covers Covid-19?
If you’ve had all of your vaccinations, you’ll be able to go abroad without a visa starting November 1st. However, transit and destination countries may impose entrance limitations, such as quarantine requirements. Check sure you can purchase travel insurance for the destination you plan to visit before you depart.
When you book a ticket or trip with some tour operators or airlines, you may be eligible for free ‘COVID insurance.’ Always read your travel insurance coverage to make sure you’re aware of what it covers. It’s possible that free ‘COVID insurance’ just covers COVID-19 and nothing else. It may also be granted by an overseas insurance company, putting it under the jurisdiction of that country’s regulations. If this is the case, it is unlikely to be a suitable substitute for comprehensive Australian travel insurance.
Even if you are unable to obtain coverage for COVID-19, travel insurance is still required. Traveling does not always go as planned. If you become sick while traveling, have to cancel your plans, or your luggage and important documents are lost or stolen, and you don’t have travel insurance, you’ll have to cover the charges out of your own money. If you’re still not convinced, check out CHOICE’s explanation of why you should buy travel insurance.
Checklist
- Is the Smartraveller advise level for the countries you’ll be visiting covered by your insurance? Many destinations are currently classified as level three – ‘Reconsider your need to travel,’ and not all travel insurance companies cover them.
- Is evidence of insurance for COVID-19-related medical expenses required by your destination? Singapore, for example, demands a minimum of SGD $30,000 in coverage.
- Is your vacation covered for the entire duration? Can you, for example, extend your coverage if you have to stay in a foreign country longer than intended due to a flight cancellation?
- Are you protected for stopovers on your journey to your destination? Is there a time limit on how long you may stay at the stopover location? What happens if you’re stranded for a long time?
- Are you protected if you or a traveling companion tests positive for COVID-19 and you can’t travel or your stay is extended? What if you’re forced to isolate yourself because you’re in close proximity to someone who has tested positive?
- Are you reimbursed for cancellation charges if a business colleague or a family member back home gets COVID-19 and you have to leave sooner than planned?
- What if you were planning on staying with someone but they have COVID-19? Or is your hotel or tour company forced to close as a result of COVID-19? Are your out-of-pocket costs covered?
- If you’re going on a cruise, take extra precautions. For multi-night cruises, some travel insurers may not provide COVID-19 coverage.
- Are you protected in the event of a claim resulting from government travel bans, border closures, or enforced quarantine/self-isolation rules at your destination?
The Bradstone* family from Melbourne was planning a visit to Queenstown, New Zealand, to see relatives. However, due to a lockdown in Melbourne, they were forced to abandon their trip. Their claim for cancellation expenses was disallowed by their travel insurer.
- Make sure you’re protected if your leave is canceled due to a COVID-19 outbreak if you’re an important healthcare professional like a pharmacist, nurse, doctor, or paramedic.
Ask your travel insurer and read the product disclosure statement for answers to these questions (PDS). Read our tips on how to read the PDS for further information.
How much does the average travel insurance cost?
Travel insurance charges vary, but on average, they range from 4 to 12 percent of your overall trip cost*.
If you’re still undecided, consider this: an emergency situation can cost tens of thousands of dollars, while an insurance plan could cost a fraction of the cost of your vacation. If you find yourself in this situation, it’s simple to justify the extra upfront cost of travel insurance.
We offer three different plans at Generali Global Assistance: Standard, Preferred, and Premium, which we’ve laid out in a simple side-by-side comparison. Each plan has a different price, but as you upgrade, you get more coverage and higher limits. And it makes no difference whether you buy over the phone or online; the pricing is the same.
What should I look for in travel insurance?
- If you are wounded or become ill while traveling overseas, you will be covered for medical expenses as well as transportation back to your home country.
The cost of your insurance is determined by the amount of coverage you’ll need. To save money, you should never under-insure yourself. However, you might be able to save money.
Does Chubb cover Covid?
Our struggle against COVID-19 spans the globe and dates back to the outbreak’s inception. Chubb pledged pro-bono clinical trial insurance coverage in January to help Chinese companies develop a vaccine. We pledged $10 million to global pandemic relief operations.
Is AIG leading global insurance company?
AIG (American International Group, Inc.) is a major global insurance company. With roots dating back to 1919, we now serve consumers in over 100 countries and jurisdictions with property casualty insurance, life insurance, retirement products, mortgage insurance, and other financial services. Products and services that assist organizations and people secure their assets, manage risks, and plan for retirement are among our many offerings. The New York Shares Exchange and the Tokyo Stock Exchange both list AIG common stock.
How long is travel insurance valid for?
Travel Insurance Policies for the Year Annual travel insurance is meant to protect you for emergency medical and medical evacuation for many visits over the course of a year. These insurance are valid for one year from the date of purchase, which should be the date of your first travel.
What does RAC travel insurance cover?
Snowboarding and skiing (leisure bigfoot, cat, cross country, glacier, mono, off-piste), ice hockey, ice skating, luging, snowmobiling, and tobogganing are all covered under this choice.
- Expenses incurred as a result of having to hire alternative snow equipment due to loss, theft, or damage
- If you are unable to use your pre-booked Ski package for the entire term (ski passes, ski hire, tuition or lift passes)
Call 1300 655 179 if you’d like to add this option and for price details.