Travel is a necessity in Singapore. Depending on your profession, travel can be a business requirement or a means of escaping business for 14 to 28 days a year (not counting your medical certificate (MC) “holidays” of course!).
Unfortunately, when it comes to travel, it doesn’t matter if you’re a student who travels 5 times a year or a working professional who takes over 50 business trips a year – anyone is susceptible to flight cancellations, delays, illnesses or injuries.
And if you’ve ever reached your destination late or without a luggage, you know how costly and annoying it can be. While you can’t prevent such events from happening, you can protect yourself from any financial loss due to these incidents – with travel insurance
Why do you need travel insurance?
Many people wrongly assume that travel insurance covers only events that occur during flight. However, it actually covers your entire trip – from the moment you step foot in Changi International Airport to the moment you return days or weeks later.
Here are several reasons why you should never leave Singapore without travel insurance:
- Missed flights: It protects you against financial loss incurred by missing your flight due to illness or injury.
- Delayed flights: It protects you against the financial loss incurred by flight cancellations, delays and route diversions.
- Luggage: It protects you from the financial loss incurred by stolen, lost or delayed luggage.
- Injury/Illness: It protects you from the financial loss incurred by medical expenses that result from injury or illness you suffer during your trip.
- Theft: It protects you from the financial loss incurred by theft of your travel documents, cash or personal possessions during your trip.
Depending on the event and insurer, you can expect to receive direct reimbursement for your loss or a lump sum payment.
What kind of travel insurance policies can you get?
“Single-trip” plans are the most commonly recognised type of travel insurance in Singapore. Often, you’ll see these kind of plans offered by airlines or airline ticket aggregator sites whenever you checkout.
However, there are several different types of travel insurance policy tailored for travellers ranging from the casual vacationer to international businessmen.
Here are the most common travel insurance policy types available:
Major points of coverage for travel insurance
No one travels expecting to miss a flight, suffer flight delays, lost luggage, theft or injury. However, these expensive situations can easily cost you hundreds or thousands of dollars unless you have a travel insurance to protect you.
Here are the major points of coverage travel insurance provides:
Personal accident coverage
Personal accident (PA) coverage is meant to provide financial benefits in the event you become temporarily disabled, permanently disabled, or perish as a result of an accident during your trip.
The compensation you (or your beneficiaries) would receive in the event of an accident that leads to disability or death varies by the insurer’s compensation table, which can be found in the policy documents.
Let’s say you’re on holiday in Bangkok and you lose a leg as a result of an auto accident that occurred while renting a vehicle. Depending on the insurer’s compensation table, you could receive up to 50% of the full sum that you’re insured for.
So if you were insured for S$200,000 in PA, you’d receive a financial payout of S$100,000 (and the full S$200,000 in the event of death).
*Double indemnity: Many travel insurance policies have “double indemnity” benefits, which entitle your beneficiaries to 2X the accidental death benefit in the event of your death while travelling on public transportation or in a private vehicle.
No one wants to spend his or her business trip or holiday in a hospital bed. However, accidents and illness overseas can easily turn into not just a medical nightmare – but a financial one as well, especially if you suffer an accident, illness or injury in a remote location that requires air transport.
Fortunately, travel insurance policies provide expense reimbursement to cover a variety of medical-related expenses such as:
- Medical visitation: In the event you become hospitalised for 5 days or more and can’t be evacuated due to your condition, your insurer will cover the expense of having at least one relative visit you.
- Evacuation: Depending on the nature of the accident/illness and a hospital’s ability to treat your condition, your insurer will arrange for aerial medical evacuation to transport you to a medical facility capable of treating you.
- Hospital Cash: If you are hospitalised for at least 24 hours, your insurer can provide you with daily hospital cash benefits to cover medical expenses.
The most recognised aspect of travel insurance coverage has to deal with the trip-ruining issues related to flying such as flight delays, cancellations, missed flights, lost or delayed luggage and theft of personal items.
Thankfully, most travel insurance policies offer a fair amount of compensation to offset the financial loss you can expect from such incidents.
Travel insurance will cover the following travel-related incidents:
- Flight-related incidents: Events outside your control such as turbulent weather, natural disasters, political instability, mechanical issues, or even a death in the family can result in flight cancellations, delays and missed connecting flights. Thankfully, insurers will provide financial benefits or cash reimbursement (up to a limit) to cover expenses like food and accommodation.
- Luggage-related incidents: If your luggage is delayed for more than 12 hours, you can receive a cash benefit or reimbursement for any necessities you need to purchase such as clothing. If your luggage is lost, damaged or stolen, you can expect to receive compensation (up to a limit). However, there may be claim exclusions and excess to be paid on claims (varies by insurer).
- Liability coverage: If you cause third-party damage or injury during your travel insurance policy period, your insurer will cover the expense up to a limit (varies by insurer).
As you can imagine, buying travel insurance isn’t as simple as you might think – especially if you want a travel insurance policy that’s tailored to your travel needs and requirements.
However, it gets much easier once you’re able to see coverage amounts offered by insurers. Thankfully, our Travel Insurance Comparison Page has just the information you need to make the right choice. We’ll even give you free consultation on what’s the best policy out there for your travel requirements.
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