Factors to consider when getting a policy.
FEATURE
SaveMoney.my has previously explained the types of travel insurance policies; this week we conclude our guide with other factors to consider when getting a policy.
Frequency of travel
Have you established which coverage area you prefer? Great! So, how long will you be gone for? Two days, Two months, or maybe you travel on a monthly basis? There are actually two types of frequency that you can choose for your travel insurance plans: Return Trip or Annual Cover. Return trip basically means that your premium will only cover on the selected days, while annual cover means that you will have get travel protection all year long. However, most airline companies do not provide the annual cover insurance for their customers. Here are the difference between major airlines and insurance companies:
| Frequency Coverage | Airline Companies | Insurance Companies |
| One-Way Trip Coverage | Yes | Yes (but very rare) â€" limited protection coverage |
| Return Trip Coverage | Yes | Yes |
| Periodical Coverage (example : 1-3 days Coverage, 20 â€" 30 days Coverage) | Some | Yes |
| Annual Coverage | No | Yes |
So, which plan should you get? For most people, the travel insurance provided by airline companies is enough for them. But while purchasing the travel insurance right off the website is way easier, it doesn’t necessarily save you money. For example, a return trip insurance coverage (domestic) will cost you RM18, but you can actually get it cheaper with from an actual insurance company at RM11 (but there might be a RM10 stamp duty).
Moreover, if you travel on a monthly basis (or close to that), you ought to consider purchasing an annual travel insurance plan to save some money. Here’s why:
Situation A: Ali travels to China once a month for business. As you can see, he can actually save more money by purchasing the annual travel insurance.
| Company | Coverage Area | Premium | Cost After 1 Year |
| ABC Insurance | All Regional Flight | RM34 per return trip | RM456 |
| XYZ Insurance | South East Asia, Cambodia, China, Hong Kong, Macau, Malaysia, Maldives, Myanmar, Taiwan, Thailand, Korea, Australia, New Zealand, Japan, India, Indonesia, Bangladesh, Pakistan, Sri Langka, Vietnam | RM230 Annual | RM230 |
Travel insurance provider
Now, since you know all about the types of travel insurance, we at SaveMoney.my will move on to where to get it from. Basically, there are three ways for you to get a travel insurance for you and your family or spouse:
Travel agents
Obviously, most (not all) insurance companies provide at least one travel insurance in their services. However, if you only travel once a year, the normal insurance plan provided by the airline company should be sufficient for you. However, if you want to have more options (annual coverage, 20 days coverage, etc), then insurance agent is the way to go. On the other side of the plate, frequent travellers should consider getting an annual travel insurance plan instead of purchasing from the airline company for every flight.
Airline companies
Aside from the obvious insurance providers and agents that are easily available in Malaysia, airlines also offer travel insurance for their passengers. Those who have ever booked a flight online will surely notice the insurance purchase option, and yes, that is indeed a travel insurance. However, these insurance are often underwritten by an insurance company and re-sell by the airline company.
Banks
Likewise, some banks have branched out to the insurance industry, and part of the products offered are the travel insurance plans. But just like the airline companies, much of the insurance products offered by the banks are underwritten by insurance companies.
Balkish Rosly is an Investigative Journalist of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.
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