Travel Insurance Guide
What Insurance to Buy

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Holiday time is a precious commodity these days with most people preferring to use their holiday time relaxing and recovering from the stresses and stains of everyday life. Few people would ever imagine that an idyllic holiday could be anything more than that yet within that split second, a simple trip or fall or a more serious medical emergency could result in holiday dreams (and bank balances!) being completely shattered if adequate insurance cover has not been arranged before the trip begins.

A survey published in May 2007 by YouGov for Norwich Union, (Travel Uncovered Report) reported that a large number of Britons are still travelling on holiday without travel insurance. The survey of 1000 people identified that half of the travellers who had chosen not to take insurance were prepared to take a 'calculated risk', preferring to adopt the 'it wont happen to me' attitude. A staggering 14 per cent of those questioned quite simply forgot to arrange it as part of their holiday planning! In May 2007 the Telegraph.co.uk supported this view saying that cynicism of insurers use of small print to avoid paying claims also potentially contributed to three million Britons being prepared to travel overseas without insurance.

Travel insurance is an important part of any holiday and its benefits should not be overlooked. Did you know insurance policies will generally cover events such as:

• Financial recompense if your holiday is cancelled or curtailed due to circumstances out with your control
• Repatriation to your home country
• Medical emergencies
• Loss or damage to your personal belongings (ie. Money, passports etc)
• Search and rescue costs
• Third Party Liabilities
• Lost or broken equipment

The insurance market is vast and the amount (and type) of insurance coverage you can receive varies from insurer to insurer. In searching for an appropriate cover that is suitable for your needs it is important to review all policy wording (terms and conditions, exclusion and excess limits) to ensure that all eventualities you may come across on your holiday experience are covered.

Travel Insurance Policy Options

There are many policy options available in the insurance market place that will suit most requirements. In selecting the cover that is right for you, you should not only consider the cost of the policy, but all eventualities that the policy will pay for in the event of having to make a claim. If you buy the wrong one you could end up spending a fortune on cover which, at the end of the day, is invalid and therefore useless. Travel insurance policy options include:

• Your credit-card company
• Tour operator / Travel Agents
• Single, Annual, Multi-trip insurance policies
• Internet/Comparison websites

Credit-card - If you have free travel insurance provided by your bank, check the finer details as you may find that you are covered by insurance with your credit card as long as you purchase a significant proportion of your holiday using your flexible friend. This can be particularly relevant when purchasing ski passes and/or ski equipment on your credit card. However, the cynics amongst us know that you get nothing for free, so if your credit card is offering you “free travel accident insurance” make sure you investigate all terms and conditions.

Tour operator / Travel Agents - Travel insurance with your tour operator or travel agent is probably the simplest way to purchase your policy. When booking a package holiday with a tour operator or travel agent, you may find that they try to sell you their own travel policy. This has historically been quite expensive however they have become more competitive in recent years. Some tour operators or travel agents will even offer annual cover but it is probably better to source your own insurance that is specific to your needs and your holiday plans.

Single, Annual or Multi-Trip Insurance policies - Single, annual or multi-trip cover, family and group are all types of travel insurance cover available. If you are a regular traveller, i.e. someone who is making more than two or three trips a year – especially if one is a skiing holiday – then the benefits of an annual multi-travel policy that covers winter sports as well as all other travel trips, is more likely to work out cheaper than purchasing multiple single travel policies.

Internet/Comparison Websites
There are now a multitude of insurance comparison websites that offer a range of great travel insurance policies; however, it is important to compare more than just the price. When deciding between policy options, you should start by considering:

• Policy limits for medical expenses and lost baggage
• The size of the excess (if any)
• Which sports and other activities are covered – taking note of any exclusions, from the cover (Some sports activities or illnesses are not always automatically covered.)
• Personal accident cover limits
• Missed departure through circumstances beyond your control
• Travel delays (typically payable after 12 hours)
• Personal liability (typically up to £2m for worldwide travel); and
• Legal expenses (up to £50,000)

Travel Insurance Policy Exclusions

Travel policy exclusions are a bit of a minefield as every policy differs so it is vital that you read the policy terms and conditions thoroughly. Policies often come with a list of sports and activities that are and are not covered. These can include ‘extreme’ sports such as competitive mountain biking, off-piste skiing, rock climbing and paragliding.

Less extreme however is the exclusion of accidents which happen whilst under the influence of alcohol or drugs. Many policies exclude accidents whilst under the influence so if you’re on a winter break and soaking up the après ski on a mountain bar, or having a long boozy lunch before continuing the afternoons skiing be careful that you don’t invalidate your insurance cover!

Hazardous Activities and Specialist Insurance cover

If you are planning on undertaking some activities which may be deemed ‘hazardous’ then it is important to be aware that you may be required to purchased specialist policies in order to cover your ‘extreme’ sporting lifestyle.

You may not consider a skiing holiday, a mountain biking holiday or a leisurely trek in the Alps as particularly hazardous activity however you could find that in the event of a claim, your insurer points you to the small print of the policy which could potentially exclude these activities. Every policy is different. For example, we took a random sample of insurers and looked into their annual travel insurance cover (with winter sports option) here’s what we found:

Is Travel Insurance necessary if travelling in Europe with an EHIC?

Since 01 January 2006, anybody heading overseas is required to carry a European Health Insurance Card (EHIC). This replaced the old paper based E111 which ceased to be valid at the end of December 2005. The European Health Insurance Certificate (EHIC) gives access to reciprocal medical care when travelling in Europe (and now also Switzerland, Norway and Iceland). An EHIC is normally valid for up to 5 years and by having a card the country you are visiting will match the level of ‘standard care’ provided to citizens of that country should you require any medical treatment. (This 'standard care' may vary from traditional UK standards depending on where you are.) You may have to make a contribution to the cost of your care as it may not cover everything that the NHS system in the UK would cover.

As great as it sounds however, the EHIC is by no means fool proof cover. It is important to understand that the EHIC entitles an EU resident to emergency medical treatment in the event of an accident or illness in Europe. It should certainly NOT be viewed as a replacement for travel insurance. Many of the problems commonly faced by travellers such as flight cancellations or delays, loss of passports and/or bags and repatriation to home countries after medical emergencies are examples of situations that will not be covered by the EHIC card.

In France you have to pay for treatment up front and have it refunded at a later date. Around 70% of standard doctors' and dentists' fees are refunded, and between 35% and 65% of the cost of most prescribed medicines. Additionally, in France you are required to pay for out patient treatment and then claim a refund from the local sickness insurance office before you go home. For in-patient treatment, the consultant doctor will issue you with a certificate (attestation). The hospital should then send a notice of admission-acceptance of responsibility (Avis d'admission-prise en charge) form to the local sickness insurance office along with your EHIC card. If they do not, you should send it yourself. If you are treated in an approved hospital, the local sickness office will pay 75% or more of the cost direct to the hospital and you must pay the balance. You must also pay a fixed daily hospital charge (forfait journalier). The 25% balance and the forfait journalier are non-refundable.

On the plus side, you may find that an EHIC card will cover you for pre-existing medical conditions or chronic diseases that your insurer may have excluded within their policy cover. It's always better to have both, and infact some insurers will insist that you have it as they may be able to reduce their costs by reclaiming from the european country where had your accident.

The Department of Health also advises that the EHIC will not cover you if getting medical treatment is the main purpose of your trip. The Department of Health website lists the valid eligibility criteria for obtaining a EHIC.

Essential Insurance Checklist

If you choose to travel without taking our travel insurance you can certainly be classified as a ‘risk taker’ – or ‘foolish’ as you are taking on a massive financial gamble should you have a serious accident, or you fell ill whilst abroad. If you have taken travel insurance cover, don’t get caught out with a failed claim which the insurer had covered in the small print as most policies will provide more than sufficient general cover. Limits for medical treatment, cancellation and curtailment for example, are usually far higher than necessary. Cover for your baggage and ski equipment varies enormously so if you are the next Posh Beckham and taking your finest Chanel skis in your Louis Vitton skibag, make sure your limits are sufficient to replace any items damaged or stolen. You may find that some companies will offer ‘new for old’ for on lost baggage or equipment, whilst others may only be provide replacement cover. Having reviewed a number of travel insurance providers we have compiled the following insurance checklist which covers some key areas you may wish to think about when purchasing your travel insurance (this list is not exhaustive):

• Is your destination covered? - If you are planning to travel outside of European countries expect to pay more. Insurance claims will be more expensive in different countries
• What activities will you be doing on your holiday?! - If you are an adrenaline junkie or you’re simply going on a business trip with your annual multi-trip policy you should still check your policy limitations. Activities such as skiing (on and off piste), snowboarding (on and off piste), water-skiing, mountain biking, mountain trekking or paragliding are not always automatically covered and may require an additional premiums being paid if the insurers are willing to cover the activity. Moreover, you may find stipulations on how these activities should be undertaken – ie. Skiing off piste may only be covered providing you are with a fully trained mountain guide and certain avalanche warnings have been adhered to
• How long are you going on holiday for? - Policies can be purchased on a single trip basis or as an annual multi-trip policy however many policies may limit the trip duration (some even the number of trips you can take in a year) so it is always best to check your trip duration
• Have you disclosed all pre-existing medical conditions - Most policies will not cover chronic or terminal illnesses. If you have to make a claim it is possible that insurance companies will contact your doctor for medical records. If the condition you suffered whilst travelling is affected by an existing condition, you may find the claim is rejected. A potential expensive mistake!
• Does the policy provide 24 hrs emergency service / assistance?

In looking at the scope of travel insurance cover, it is important to review the financial limits of the cover to make sure they are sufficient for the country you are visiting. So, what are the financial limits on your holiday cover? A good policy should provide cover for the following:

• Financial recompense if your holiday is cancelled or curtailed due to circumstances out with your control
• Repatriation to your home country
• Medical emergencies
• Loss or damage to your personal belongings (ie. Money, passports etc)
• Search and rescue costs
• Personal and Third Party Liabilities
• Lost or broken equipment

Adequate limits for the above will depend on where you are travelling and it is best to discuss your requirements with your travel insurer. Price comparison website Moneysupermarket.com recommends the following minimum cover

• £2m medical expenses
• £1m personal liability
• £3,000 - £5,000 cancellation and curtailment costs
• £1,500 baggage and £250 cash
• Sufficient medical cover is invaluable as according to the AA, the cost of resort-based medical care has risen significantly in recent years