Understanding Travel Insurance

What is travel insurance?

Travel insurance is a product designed to cover possible costs and losses associated with unexpected accidents/incidents that might occur while you are travelling. Depending on the type of plan you choose, travel insurance coverage can include baggage losses, flight delays, trip cancellations, medical emergencies and many others.

What are the different types of travel insurance?

Here are the common types of travel insurance provided in the market:

• Single Trip - Single trip travel insurance covers a traveller for a single return trip that begins and ends in Singapore. This is commonly purchased for individuals who are not planning to travel frequently in a year. A single trip usually provides cover up to a maximum of 180 days.
• Annual Cover - Annual cover is suitable for anyone who wants to be covered on a travel insurance plan for a year for an unlimited number of trips starting and ending in Singapore. Any trips under this policy should not exceed 90 days. There are significant savings to be enjoyed from buying an Annual Travel Insurance for someone who travels frequently.
• Individual Plan - Individual plans cover just a single person.
• Family Plan - Family plan covers you, your spouse and your kids. Depending on the insurer, some plans may limit the number of family members to be included.
• Group Plan - Group plans can be considered if you are travelling in a group of five. The coverage is almost identical to individual plans yet at a lower cost.

When should I purchase my travel insurance?

Ideally, you should purchase your travel insurance as soon as possible after you have booked your trip. This is to help cover you should there be any unforeseen circumstances or situations (medical emergencies or collapse of travel agency) that render you unable to travel. You will generally be compensated for any non-refundable travel and accommodation expenses that have been paid for.

What should I indicate for the period of insurance?

You should put the period of insurance as the start and end date of your trip, based on Singapore time.

Will I be able to purchase travel insurance if I am already overseas?

Insurance companies do not allow purchase of travel insurance if you are already overseas. You must purchase your travel insurance before the start of your trip.

Will my travel insurance cover my pre-existing illness?

You will generally not be covered for losses and medical treatments related to your pre-existing conditions. However, you should still purchase travel insurance to be covered for other benefits such as baggage delay and personal accidents. A few insurers do provide cover for pre-existing illnesses, you should read each policy closely before making a purchase.

Will I be compensated if I cancel my trip due to unforeseen circumstances?

Most insurers only pay out cancellation claims if the policy is cancelled within a certain number of days before trip commencement date and this is subject to severity of injury/illness and whether trip expenses are recoverable from other sources.

Does travel insurance cover Covid-19?

Currently, most insurers do not cover Covid-19 related claims as Covid-19 is a known event at this time. As this is an evolving situation, we cannot say whether this restriction will remain in the future.

If I have a child over 18, will they be covered under my family policy?

A traveller over the age of 18 will be classified as an adult. Most family policies offered will only include children up to the age of 18 and any children over this age limit will need a separate policy. However, some insurers allow an age limit of up to 25 years old, provided the child is a full-time student in a recognized institution of learning or higher learning.