Wednesday, May 15, 2019

Making a claim on travel insurance

Most people insist on buying travel insurance to cover the the risk that something may go wrong. They pay a premium of $50 to $100 for each travel. The chance of a claim occurring is quite small. So, they pay the premium and are happy that all went well.

When they fall ill and have to miss a flight, or suffered a long flight delay, they make a claim. Sometimes the claim is paid. Sometimes it is rejected due to some exclusions or conditions that were not fulfilled.

Some of these claimants approach me for help. I ask them to accept the decision of the insurance company in the rejection of the claim.

If they are still unhappy about the rejection, they should see a lawyer.

They said that a lawyer is expensive. Of course! The lawyer has to make a living. The legal fees may be more than the amount of claim.

These claimants probably expect me to deal with the claim for free. I cannot afford to spend the time, as it can be quite protracted. I can only give some general advice.

I do not buy travel insurance. If anything happens, I bear the loss - e.g. medical expenses or lost items. It is too troublesome to make a claim. It is more troublesome to argue with the insurance officer who finds a reason to reject the claim.

I do have a personal accident insurance for $1 million that covers me against death or serious injury in Singapore and around the world. Do not think that accidents only happen when you travel. It can happen in Singapore as well.

For people who likes to buy travel insurance, just treat it as paying a tax. And if you are able to make a claim, treat it as striking lottery.

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