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Top 5 Must Know Hidden Travel Insurance Clauses

Taking time to read the fine print in a travel insurance policy is not an option. It does not matter who the insurer is or the rave reviews they command online. When it comes to insurance policies, things can get out of a hand if you are not looking out for the hidden travel insurance clauses.

All insurance policies come with a bunch of terms that one ought to pay close attention to – ‘excepts’, ‘buts’ ‘only ifs’. Below are some hidden travel insurance clauses that you should watch out for while taking cover in Singapore.

  1. Alcohol Exclusion Clause

Alcohol exclusion clause is the most popular clause in travel insurance cover that adventurous travellers ignore. In most cases, Insurance companies will refuse to pay for any damages or injuries that afflict the insured while drunk.

An insurance company may refuse to cover for that broken leg suffered while drunk on holiday. You might have to pay from your pocket for any damages caused on third-party property. This is especially the case if the same occurred while you was drunk.

  1. Equipment Coverage Clause

While travelling, find out if the travel insurance does provide cover for sporting equipment as part of a itinerary. Reading the fine print could shed light on this grey area. Take the time to inquire with the insurance company what are some of the scenarios that they provide cover for.

Insurance companies at times bulk out of providing coverage for injuries or damages caused by sporting equipment on holiday. For instance, an insurance company may refuse to offer coverage for injuries incurred while skiing, cycling or racing.

  1. Personal Belongings Covered

Holidaymakers many at times assume that a travel insurance policy covers all personal belongings. However, that is not always the case. Travel insurance policies usually come with many exclusions on personal belongings.

It is also important to find out which scenarios a personal belonging is covered. For instance, an insurance company may only offer coverage for damage on snorkeling gear. In case the gear is stolen, the insurance company may refuse to reimburse the costs for buying a new one.

It is thus important to be clear from the start what your travel insurance covers when it comes to items such as golf clubs, bicycles as well as fishing gear. Very few insurance companies will be willing to cover any personal belongings left behind say at the airport, train station or bus stop.

  1. Travel Insurance Excesses

Insurance excess is the extra amount that one must pay when making a claim. However many travellers fail to understand that insurers charge excesses per claim, rather than by the area covered. For example, if you make a claim on a stolen or damaged personal belonging, the insurance company would require you to pay any excess on each item.

Depending on the items stolen, excesses can end up costing too much. This is why it is essential to read the fine print to be clear on the excesses. Some travel insurance policies do allow you to pay a small fee to have the excess feature terminated altogether.

  1. Acceptable Reasons for Travel Cancellation

Simply changing your mind about a scheduled trip will not cut it with travel insurance. Insurance companies make it clear from the word go, under what circumstance they will reimburse in case of a trip cancellation.

Good thing is, most Insurance companies are known to reimburse in case of severe weather conditions, natural disasters illnesses, injury, or death leads to a trip cancellation.

*The advice offered in this column is intended for informational purposes only and not intended to replace or substitute for any professional, financial, legal, or other professional advice. If you have specific concerns or a situation in which you require professional help, you should consult with an appropriately trained and qualified adviser.

Adrian Teo

Financial Services Director

Adrian Teo has over 16 years' experience in the Wealth Management & Financial Services. He has been in Pana Harrison since 2008 and is a seasoned Financial Services Director.

He is well versed in the areas of Investments & Retirement Planning and is well known for helping his clients achieve their Financial Freedom through various solutions and products.

He is also passionate in grooming new consultants who wish to embark a career in the Financial Services Industry.