In 2011, there were the Great East Japan Earthquake, political unrest in Egypt, the Wenzhou high-speed train accident, and floods in Thailand… Then at the start of 2012, an Italian cruise ship ran aground. Too many natural disasters and tourism emergencies have been witnessed by travelers, making travel insurance seem almost indispensable. But how exactly should one get travel insurance? And what kinds of rights and protections do different types of travel insurance offer?
Flight delay insurance is not listed separately
Recently, Mr. Zhang, a resident of Hangzhou, was on a business trip in Beijing when his flight was delayed, causing him to spend an extra day in the city and incurring 500 yuan in accommodation costs. On his way back to Hangzhou, he unexpectedly found out that the passenger next to him received 400 yuan in compensation, while he got nothing. Upon inquiry, he learned that the person had purchased flight delay insurance in advance. Mr. Zhang turned to us for help: “What is flight delay insurance? How can I purchase it?”
A reporter subsequently called various insurance companies in Hangzhou and learned that currently most insurers do offer flight delay insurance, but it is not listed as a separate product. Instead, it is included within other insurance types. For instance, PICC includes aviation delay insurance in its travel insurance, distinguishing between international and domestic flights. Ping An Insurance, on the other hand, incorporates it into its traffic accident insurance. Moreover, compensation standards vary significantly among insurers: PICC pays 250 yuan for every 8-hour delay, while Ping An pays 400 yuan for every 4-hour delay. Travelers who wish to buy this insurance must inquire with different insurers and choose among various policies, which creates obstacles for the promotion of flight delay insurance and public awareness of it.
It is understood that major insurance companies offer a wide range of travel-related insurance products, but they mainly fall into two categories: travel insurance and traffic accident insurance. For example, PICC’s travel insurance includes domestic self-driving travel insurance, domestic travel insurance, and overseas travel insurance; traffic accident insurance includes vehicle accident insurance and personal accident insurance. Ping An Insurance’s traffic accident insurance is relatively straightforward, mainly divided into “accidental death/disability due to traffic accidents” and “flight delay insurance.” For the latter, paying 10 yuan per year entitles the insured to 400 yuan per delayed flight.
Several Common Misconceptions When Choosing Insurance
In recent years, due to the frequent occurrence of natural disasters and emergencies, the purchase rate of travel insurance has been rising steadily, but the overall level remains low. Currently, with over 2 billion trips taken in China annually, a significant proportion of travelers remain uninsured.
Currently, travel agencies offer two types of insurance: the mandatory Travel Agency Liability Insurance, and optional Travel Accident Insurance. The liability insurance covers compensation for incidents caused by the travel agency’s negligence, and it is compulsory. The accident insurance, on the other hand, provides coverage for risks and accidents that may occur during the trip, and whether to purchase it is up to the traveler.
Industry insiders say that currently, travelers’ understanding of travel insurance is mainly clouded by several misconceptions:
The first is the belief that the liability insurance purchased by the travel agency, or any free travel insurance given, is sufficient.
When joining a tour group, many travelers think that having liability insurance is enough to cover all risks. In reality, the policyholder and the insured under travel liability insurance are the travel agency itself, and it does not guarantee coverage for accidents that happen to travelers during the trip. It cannot replace travel accident insurance.
“Some travel agencies promote their products by advertising ‘free insurance with your tour.’ In such cases, be sure to check whether the offered insurance is liability insurance or accident insurance. Also, even if the travel agency has purchased travel accident insurance, customers should carefully review the specific coverage items,” said Chen Xinan, head of the Outbound Center at Zhejiang China Travel Service. “For example, Zhejiang China Travel Service offers four outbound travel insurance plans, labeled A through D. In addition to coverage for accidents, medical expenses, and death from illness, there are also new options such as baggage delay compensation (500 yuan per 6-hour delay), personal belongings, pet protection during the trip, loss of travel documents, credit card shopping protection, and protection against bank card fraud.”
The second misconception is choosing travel insurance based solely on premium cost.
Travel insurance comes in various types and price ranges. When purchasing it, travelers should consider their mode of travel, itinerary, destination, required coverage amount, and duration, then select a tailored policy. It’s not simply about picking the lowest price or highest coverage.
“For example, for domestic travel, one can buy short-term travel accident insurance. If going to high-altitude areas, additional high-altitude insurance is needed. For outbound travel, it’s best if the insurance includes travel rescue and medical coverage, and the medical insurance amount should be chosen according to the destination’s cost of living,” said Jin Lan, deputy manager of the Outbound Department at Hangzhou Overseas Travel Service. “For some European tours, accident insurance can be quite expensive — around 100–200 yuan per person — but it covers many items, including emergency medical assistance, hospitalization due to illness, and compensation regardless of the cause. For those traveling independently in Europe, selecting certain overseas insurance products from AIG is also a great option.”
The third is the belief that accident insurance covers everything.
Some travel accident insurance policies may be cheap, but they often exclude high-risk activities such as horse racing, rock climbing, adventure rafting, scuba diving, alpine skiing, and surfing. Customers should pay close attention to the exclusions in the insurance policy when purchasing.
“Travelers should proactively learn about insurance to protect their own rights. After purchasing a policy, keep it safe and carry the policy number and 24-hour travel assistance hotline with you during the trip. In case of an emergency, contact the assistance agency partnered with your insurer as soon as possible to receive timely help and understand the documentation needed for a claim. If you receive medical treatment abroad due to an accident, make sure to keep diagnosis certificates, original receipts of medical expenses, and accident reports, as these will serve as the basis for reimbursement when you return home,” explained a representative from Ctrip’s Hangzhou branch.