• 23
  Apr
  2010

• Volcanic Ash Spews Opportunity, Costs for Insurance Industry

  
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The volcano in Iceland has spewed more than just ash. It has dramatically changed the way that many people look at travel insurance, especially trip cancellation insurance. The predominant attitude among people who did not purchase travel insurance unless specified by law was simply, “What are the chances? I’ll take them!”

Now, however, travelers are realizing the extent to which international travel depends on many events and things beyond our control.

The international insurance industry is in a funny situation—while one hand, the industry is expecting to pay out a substantial amount of money and hence rack up losses; on the other, there are strong indications that more people will look for insurance henceforth. As we monitor the situation closely, there will doubtless be different viewpoints that support and oppose insurance claims. Already, we are able to glimpse a little bit of that, with some insurance companies considering the volcanic eruption as an Act of God and others as inclement weather.

What can you, as a traveler, take away from the current situation? Looking at how the claims get resolved, and knowing which companies and plans actually settled the claims might go a long way in knowing how reliable a company is. Indeed, this might even be the perfect litmus test for travel insurance companies!

Travel tip: Compare the ratings of a company with their stand on the volcanic ash issue. You might note a correlation!

• 21
  Apr
  2010

• Whining Kids, Enthusiastic Parents, Insurance Protection: The Summer Holiday

  
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This isn’t an isolated memory, for sure. Planning for a summer family vacation—perhaps to a place learned about in school—Mount Rushmore one year, and the Washington Memorial the next. The planning and plotting began way before school closed, and everything was discussed in detail—everything but travel insurance, that is.

And one of us always fell ill when on the road, after eating something particularly adventurous, or after a long day of sightseeing. There goes the holiday, we cried, and whined about how much better home would have been! This happened quite often actually, and we were always rushed to a doctor if it got worse. The medical care was paid for by insurance, which worked inside the United States.

The summer vacation of today is a bit different for many folks. It has expanded in scope to include international destinations. Kids still sulk at parents’ choice of things to see, do, and eat, and parents still try to make the trip not just about fun, but about education as well. And children still fall ill when traveling.

The only difference? U.S. health insurance does not work abroad. No wonder then, that travel experts especially advise people traveling with children to purchase adequate travel insurance. For less than the price of a cup of coffee a day, parents can breathe easy that their kids’ healthcare costs will be taken care of, if necessary. And then they can move on to tackle the whining kids!

Travel tip: Have games ready for children who get impatient with long drives.

• 20
  Apr
  2010

• Ashes to Ashes: Travel Insurance and Volcanoes

  
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The big news in the travel insurance industry is the volcanic ash over Europe, which has stranded thousands of passengers who are simply unable to make their scheduled trips. Thousands of flights have been cancelled, and confusion reigns supreme about how this should be treated in insurance plans. The U.S. insurance industry estimates that claims in the millions of dollars will be paid to travelers because of the volcanic ash.

If you are affected by this, you have likely been promised a refund by your airline. However, the airline might not pay for the expenses arising out of the change in schedule, such as accommodation and incidental expenses. Most travel insurance plans, however, provide coverage for daily expenses, up to a certain limit.

U.S. insurance companies are stepping up to the plate and have promised to settle claims according to the schedule of benefits. They are, for the most part, treating the volcanic ash as a weather-related event. To qualify, the plan will have to include trip cancellation benefits, or must be a separate trip cancellation insurance policy.

On the other side of the Atlantic, however, some insurance companies operating out of Britain indicate that they are treating the ash as an “Act of God.” That might exclude many plan holders from claiming benefits. You want to make sure that your plan covers adverse weather conditions and cancellation of flights.

Travel tip: Make a call to the airline, and then to your insurance company, before deciding to stay put at home. If your flight departs on a different route, and you are not on the flight, you might end up losing all the money.

• 19
  Apr
  2010

• Have Insurance, Will Travel: International Emergencies

  
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While international travel to remote parts of the world is becoming more and more common, it is also an inescapable fact that more areas of the world are becoming unsafe due to political turmoil and terrorist activity. Most travel insurance plans of today feature coverage that reflects this new reality.

The Patriot Executive Annual Group plan, which offers groups travel insurance for travelers from and to the United States, features benefits for international emergency care, which includes political evacuation, emergency evacuation, and emergency reunion benefits.

The political evacuation clause provides for the transportation of the plan holder to the nearest safe destination or to the home country, in case the U.S. Department of State issues a travel advisory against travel to the destination after the plan holder’s arrival at the destination.

The insurance company will pay up to $10,000 under this benefit. To avail this benefit, the plan holder must contact the insurance within 10 days of the travel advisory, and political evacuation and repatriation must be approved and coordinated by the insurance company.

Travel tip: Do some research about the destination prior to your trip. While that is no guarantee you will spot any danger, it will help you avoid areas of conflict within the country, for your own safety.