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 By Jeffery Miller
As a travel industry lawyer, some of the most frequently asked questions that I have received since the tragic events of September 11, have been on the issue of travel insurance. We recommend that all passengers booking travel arrangements —other than solely a round-trip airline ticket that is not part of a tour or cruise—give serious consideration to purchasing travel insurance.
Your AAA club offers travel insurance, which is provided by some of the leading carriers in the world. While this type of insurance will provide coverage for many different things, it will not protect you if you merely decide you do not want to travel and you are past the cancellation period where you would receive a full refund. Further, your travel agent will advise you that you need to decide whether you want the insurance within a set number of days following your deposit for the travel arrangements. Many insurance carriers offering travel protection will waive any pre-existing medical conditions which might result in your having to cancel your travel plans if the insurance is taken out within a specified number of days following the deposit. If you elect to take the coverage at a later date, pre-existing medical conditions, if any, will not be covered. If you have to cancel because of those conditions, you are not going to have protection under the plan.
It is very possible that your travel agent is going to ask you to sign a consumer disclosure notice if you do not elect to take the insurance. That notice and request is no different than when you rent an automobile and are asked to sign that you either accept or decline various types of insurance coverage.
Some of the types of insurance coverage that are available through a travel policy include:
Baggage Loss/Delay. This provision would generally pay for the purchase of items deemed essential if baggage is delayed more than one day and up to a set amount if the baggage is lost. However, you should be aware that most insurance policies pay cash value, which means the cost of the item less depreciation. For example, a $50 shirt that is two years old might be worth $20 under the insurance guidelines. That is the amount the passenger would be reimbursed.
Medical Expenses Arising From an Accident or Sickness. These provisions typically pay a certain amount for hospital and physician’s bills if an accidental injury occurs during a trip or if costs are incurred with regard to an illness during the trip. Keep in mind that if treatment for pre-existing conditions, as previously discussed, arises, it would not be covered if the policy was not taken out within the required time frame. This coverage might also have daily dollar limits, impose a cap for certain types of expenses, or be subject to a deductible. However, most of the health insurance available in the United States would not cover a passenger for medical expenses incurred overseas. Thus, this insurance can be very, very valuable.
Access to a 24-hour Toll-free Emergency Network. This benefit is generally available through all of the travel insurance policies and provides phone access to a facility that will arrange for emergency assistance, if necessary.
Trip Delay Coverage. This provides reimbursement for food and lodging expenses when a trip has been delayed. For example, if you were stranded in a snow storm and your flight could not depart, this would provide reimbursement for expenses incurred while waiting for the plane to leave.
Trip Cancellation/Trip Interruption Insurance. This typically covers reimbursement for nonrefundable payments if a trip is cancelled or interrupted, up to the stated benefit amount.
Emergency Medical Evacuation. This is probably the most important benefit that is available and generally totally overlooked by the passenger. If you have a medical emergency overseas and need to be flown to a medical facility where treatment is available for that condition, this coverage would either reimburse you for expenses or, depending upon the insurance carrier, actually provide the transportation by trained medical personnel. This coverage is also available on a yearly basis, as a separate policy. If you travel frequently, it is a good policy to have. Your travel agent can provide information regarding a yearly policy.
Emergency Convenience Services. These services would include arranging emergency wiring of funds, providing a message center for emergency information, and arranging for replacement of travel documents and/or passports.
While some of these coverages might be available through the passenger’s homeowner’s insurance policy or a credit card used to pay for the trip, there is generally no protection available that will cover all of these items except for the travel insurance. Travel insurance provides worthwhile protection, at an economical price, and should be considered by all travelers.
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