By Cedric E. Stephens, ContributorQuestion: I am planning a 30-day trip to Israel. My travel advisors have
suggested that I buy special insurance for the visit. One reason is the on-going conflict between the Israelis and the Palestinians. What does travel insurance cover? Is it really necessary since I have life and health insurance? What costs will be involved?
- M.A.J., Kingston.
Answer: What are the risks involved in overseas travel? The chances of getting ill or having an accident while travelling abroad, depends partly on where you go. What you do is also important.
Given our high crime rate and the frequency of motor vehicle accidents, while travelling abroad, might actually reduce the risk of injury. Whether this applies to visits to the Middle East now is, however, an entirely different matter!
Here are some statistics that deal with the risks of foreign travel [to US citizens]. Diarr-hoea is the most common form of illness.
This occurs mostly when US citizens travel to 'lesser-developed' countries. There is a 60-70 per cent chance that they will have an illness. About eight per cent of those who get ill seek medical attention.
The severity of illness is usually very mild. The chance of being admitted to hospital is less than one per cent. The risk of an accident and injury is about five per cent. This compares with 34 per cent for diarrhoea.
Fatalities are due mainly to heart attacks and accidents. Most persons under 55 die as a result of accidents. The risks of injury or death may seem much greater now than in the past. This is because of the threat of terrorism.
Medical costs have grown at a fast rate in most countries in recent years. The quality and costs of routine and emergency medical care varies from country to country.
Many persons now buy either additional medical or travel insurance. This protects them against most of the risks of overseas travel that can result in crippling financial losses. Specifically, the benefits can include:
Compensation for accidental death or loss of limbs or eyesight while travelling as a passenger [flight insurance].
Medical expenses resulting from accidents.
In-hospital medical charges.
The costs of emergency medical evacuation.
The repatriation of remains following accidental death.
Payment for loss of, or damage to, baggage (in excess of the amount paid by the airline).
The purchase of emergency clothing and toiletries where baggage was delayed.
Costs associated with trip delay when the flight is delayed for more than 12 hours.
Benefits vary according to the type of plan that is selected. The maximum amount becomes payable in the event of death. Other benefits represent fractions of that amount. Premiums are charged on the number of travel days.
The cost of coverage for a month would range from $33.33 to $60.00 per day. Travel policies do not cover every thing. Accidents caused by the use of illegal drugs are excluded. So are high risk activities like scuba diving, rock climbing, and motorcycling.
The market for travel insurance is huge. There are over five million Internet sites on this subject. If one has the time, does one's homework properly, and has hard currency, one does not have to buy coverage locally. This option is not for the 'average' buyer. It could create many problems. Buying coverage locally can also lead to problems.
If the insurer does not have the ability to provide overseas assistance and support you could experience difficulties when you need it most.
Should you buy travel insurance? When one weighs the benefits against the risks and costs the answer is definitely yes. Enjoy your trip.
Cedric E. Stephens provides impartial advice on risks and insurance. If you need free
information or advice to solve a problem, write to The Financial Editor or, contact Mr. Stephens directly at aegis@cwjamaica.com
