Published on: 16 March 2022 by Michael Lamb
It seems like almost everyone in Hong Kong is currently thinking about a trip overseas. Whether you’re planning on going to Thailand, Singapore, or even back to the UK or USA, it is important to understand that the ease and safety you may have associated with travel pre-Covid might not exist anymore.
With heightened inbound travel restrictions to many countries around the world, and new requirements that travelers have insurance against Covid related hospitalizations, in 2022 the world is a different place than it was in 2020; and there are increased safety and security risks all over the planet. While the old risks associated with travel still exist, their impact has been exaggerated through global current events.
If you are choosing to travel away from Hong Kong, either on a temporary or permanent basis, then it is critical that you adequately address the risks you will face during your journey or run the chance of experiencing a significant financial loss.
Travel insurance is a simple product which provides you with an extensive range of coverage benefits, giving you the widest range of protection possible at a relatively modest cost.
Travel Insurance is a form of coverage that was designed specifically to meet the needs of international travelers. This type of coverage is a composite product, bundling a range of different protections under the “umbrella” of a single plan. Because most travel insurance products are packaged insurance plans, the coverage that they afford for any single benefit is generally lower than the coverage offered by a standalone policy for that same risk.
Most Travel Insurance products available in Hong Kong will start with Health Insurance protection as a core benefit. This means that when you purchase a travel insurance plan you will get access to medical protection while you are overseas. For example, CCW Global offers travel insurance options which are low cost and will provide up to HK$1,000,000 ($127,775) in coverage for medical related expenses.
This means that should you suffer an accident, injury, or illness, you will be able to access medical care in your current location. Many plans even offer coverage for sporting activities like on-piste skiing and snowboarding, scuba diving and snorkeling, and even bungee jumping.
Furthermore, many health coverage benefits provided by travel insurance plans will also allow you to receive covered care for outpatient treatment, and even alternative therapies including Traditional Chinese Medicine. So even if you’re feeling slightly under the weather whilst overseas, having a travel insurance policy can provide vital peace-of-mind that you’re able to access the care you need, as and when you need it.
However. while a million Hong Kong dollars may seem like a high level of protection, the health benefit found under many travel insurance products (especially those offered by local Hong Kong insurance companies), is intended mainly to provide emergency medical treatment while you are overseas, and get you back to Hong Kong where it is assumed you will enter the public healthcare system.
In comparison annual international health insurance policies, which have a much higher premium, can offer unlimited medical protection whilst you are overseas.
In addition to Health Protection, many Hong Kong travel insurance products also provide basic levels of coverage for Personal Accident benefits. With many local travel insurance options offering an additional HK$1,000,000 in coverage for accidental death, dismemberment, or disappearance, the inclusion of Personal Accident protection on a travel insurance plan gives the policyholder even more value for their money.
There may be higher coverage limits available through obtaining a standalone Personal Accident policy, but none that are as simple of as convenient to take out as a Travel Insurance option.
The simplicity of a travel insurance policy is further expanded with the inclusion of coverage for your liability towards other parties. Not only are you covered for injuries you receive, but under many Hong Kong travel insurance options you will also receive coverage for injuries you may cause to others. With personal liability protection of up to HK$ 3,000,000, travel insurance is able to protect you in the event that you are legally liable for accidental injuries or property damage that you may cause to 3rd parties.
While this may seem unnecessary, if you are planning on renting a scooter, or a home overseas, the inclusion or personal liability protection ensures that you are shieled in the event of any unfortunate accidents occurring.
Its not only your person which is going overseas, you’re probably going to be bringing bags, clothes, and possibly more if you’re relocating.
Travel Insurance provides coverage in the event that your baggage is delayed, or lost altogether. On top of this, there are some travel insurance products which will also provide coverage against loss or damage to your home contents (that are not on the trip) in the result of a fire, or burglary at your property while you are overseas.
The item coverage you are receiving under a Hong Kong Travel Insurance policy even extends to your travel documents (like Passports or a Hong Kong ID Card) and theft/fraud of your money (including travelers’ cheques and credit cards). From ensuring you’re able to resupply with emergency items if your bags are delayed by more than 6 hours to covering you against your credit card details being stolen while you’re out for dinner, the coverage afforded by your travel insurance policy towards your personal possessions is substantial.
Additional protection can be obtained through the purchase of a standalone Home Contents Insurance plan which provides a worldwide all risks coverage benefit. But, again, this will come at a higher cost than an average Hong Kong travel insurance policy.
One of the most concerning aspects of traveling is the stress of the journey itself – simply getting from point A to B is a headache at the best of times. With current disruptions in flights and international travel schedules, this stress is heightened.
Travel Insurance addresses this by covering you for Travel Inconveniences, including cancelled flights, delayed departures, emergency accommodation, missed connections, and even overbooking. If your trip is cancelled because of strikes, riots, civil commotions, terrorism, hijacking concerns, natural disasters or adverse weather conditions, then travel insurance can cover you for lost payments.
You are also normally covered for trips canceled due to circumstances at home – if your home has had flood or fire exposure, or if you’ve been the recent victim of burglary, you are normally covered against the cancellation of your trip, this is also true for the issuance of Red or Black travel alerts by the Hong Kong government.
This is the one area in which Travel Insurance is not surpassed by any alternate stand-alone form of coverage, and the primary reason for purchasing this type of policy even if you have Health Insurance, Home Contents Cover, or Personal Accident protection.
If you would like to learn more about the benefits of obtaining a Travel Insurance policy, please Contact Us today to speak with one of our expert brokers.
You can also request a free quotation for a Travel Insurance plan, or buy a policy online now, by completing the short form at the top of this page.