In 2024, the Consumer Council received 90 complaints related to travel insurance, a significant increase from 66 complaints in 2023 and 12 in 2022. With the Easter holiday approaching, many consumers are planning their trips. The Council advises travelers to avoid rushing to purchase travel insurance at the last minute before departure and to allow time to understand the terms of compensation and claims limitations.
The Council investigated 27 single-trip personal travel insurance plans available on the market and found that even plans with similar premiums could differ significantly in the maximum compensation for medical expenses, with differences of up to 100%. Additionally, there were considerable variations in the coverage provided by different plans.
For consumers concerned about personal safety while traveling in Southeast Asia, the investigation revealed that only one insurance company offered three plans that included "kidnap and ransom" coverage, with a maximum daily compensation of HK$500 per incident and a total compensation cap of HK$15,000. The Council's Chief Executive, Gilly Wong, noted that insurance companies base their products on data and risk assessments. Currently, the personal safety risks in Southeast Asia, compared to medical and accident risks, are not considered mainstream. Travelers needing safety coverage should inquire about relevant clauses before purchasing.
For a 7-day trip in Asia, excluding certain insurance companies that charge higher premiums for individuals aged 76 and above, personal premiums range from HK$145 to HK$509. For a 14-day trip worldwide, premiums range from HK$241 to HK$859.
Although seniors and children often pay the same premiums as adults, as many as 92% of plans reduce their maximum compensation, with reductions of up to 75%, and some benefits may not be available to them. This investigation found that 18 plans have age restrictions for coverage. Except for three plans from one insurance company that cover up to age 120, the other plans have upper age limits ranging from 79 to 85. The Council recommends that the industry regularly review and relax age limits for coverage for seniors and children while increasing the maximum benefits for these groups.
Unexpected events can occur during travel, such as losing personal belongings or documents, flight or public transport delays, or cancellations due to emergencies. Nearly 93% of plans provide coverage for "trip cancellations" and "early trip termination," compensating for non-refundable transportation or accommodation costs, with maximum compensation amounts ranging from HK$3,500 to HK$50,000. Twenty-two plans offer "trip delay cash allowances," typically compensating based on every 5 to 6 hours of delay, with maximum amounts between HK$500 and HK$5,000.
Additionally, consumers should remember that if they use "emergency assistance" services, they must first contact the insurance company's 24-hour emergency assistance hotline. Assistance must be arranged and provided by authorized emergency service providers; otherwise, related expenses may not be compensated. If travelers intend to participate in higher-risk activities such as skiing, hot air ballooning, or scuba diving, they should first verify with the insurance company whether these activities are covered before purchasing.
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