Consumer watchdog finds coverage of travel insurance with similar rates varies significantly

The Consumer Council surveyed 27 single trip individual travel insurance plans and found that the maximum benefit limits for adults could vary by up to onefold among plans with similar premiums, while the scope of coverage across different plans exhibited considerable disparities.

Between February and March this year, the consumer watchdog gathered information from the websites of 11 insurance companies, covering 27 single trip individual travel insurance plans.

Ten surveyed companies provided two to three plans with different scopes of coverage for consumers to choose from, while the remaining company only had one plan available. Taking for instance a seven-day trip in Asia, the premiums for individuals ranged from HK$145 to HK$509, while that for a 14-day trip across destinations worldwide ranged from HK$241 to HK$859.

Benefits varied by onefold among similar-priced plans

The watchdog said consumers should be mindful that the benefits and coverage scopes could vary significantly even among plans with comparable premiums from different insurance companies.

For example, among the seven travel insurance plans for a seven-day trip in Asia with a premium under HK$200, the maximum benefit limit on “Medical Expenses”, one of the items consumers are most concerned about, was found to range from HK$250,000 to HK$500,000 for an insured adult, representing a onefold difference.

The watchdog noted that one of the plans had more exclusions, such as “Baggage and Personal Property”, “Personal Money and Travel Documents”, “Delay or Interruption”, “Rental Vehicle Excess”, etc.

The survey also revealed that seniors and children might not enjoy the same benefits as insured adults despite mostly paying the same premiums.

“92% (22) of the plans lowered the maximum benefit limit on ‘Medical Expenses’ or ‘Personal Accidents’ for seniors or children, of which one insurance company’s three plans even halved the maximum benefit limit for insured persons aged 75 or above and 17 or below for some coverage items,” said the watchdog.

Only three plans offered kidnap and ransom coverage

Meanwhile, the watchdog said it noted a surge in concerns regarding personal safety when traveling to Southeast Asia, whereas only three plans from one company in the current survey offered “Kidnap and Ransom” coverage, with a daily payout ceiling of HK$500 per incident, and a total compensation limit of HK$15,000.

The watchdog reminded consumers to pay heed to exclusions when choosing travel insurance, such as participating in high-risk activities.

“If planning to engage in higher-risk activities during the trip, such as skiing, hot air balloon rides, or scuba diving, check beforehand to ensure such activities are covered, to prevent non-compensation should accidents arise,” it said.

(Marco Lam)