The relevance of insurance in contemporary air travel
“Say the truth in the morning and you would be free in the afternoon” — Author
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It is a truism that many people have come to a realisation that air travel remains the fastest means of traveling to any destination in the world.
Traveling by airplane for the first time is such a life-threatening experience for many people, as it is often filled with fear, anxiety. The taking-off of an airplane itself stirs up some inexplicable ‘chemicals’ in one’s inner being! The journey through the clouds with its accompanying occasional turbulence, and the eventual announcement of ‘…please fasten your seat belts…’ as the plane prepares to touch down, is one that could ignite the ‘fear of the unknown.’ While the cruising itself is typically covered by Aviation Insurance, the other associated risks like illness, loss of life and / or luggage among several others are covered by Travel Insurance.
Travel insurance - compulsory or necessary?
A couple of years ago, a friend requested my assistance to obtain a travel insurance policy in order to meet the entry visa requirement of the embassy of a European country he was scheduled to travel to. Indeed, he didn’t find that requirement necessary, as he thought it was only going to add to his traveling cost. Anyhow, there was no way his application was going to be accepted and processed, without meeting this requirement. Having noticed my friend’s ill-informed view of this requirement, I painstakingly explained to him the concept, features, benefits, exclusions and claims processes of a travel insurance policy.
Traveling by air has become a very sophisticated adventure, especially with its accompanying risks; hence the need for individuals to protect their lives and other valuables against the uncertainties associated with it, has become imperative.
Travel Insurance is important, and in some cases mandatory for one’s travel arrangements, encompassing all types of eventualities. In Ghana, it is becoming one of the key requirements for the acquisition of entry visas, especially to the 26 Schengen countries such as Nomansland, The Netherlands, Austria, Italy, Spain, etc. This demand has suddenly triggered the custom-design and sales of travel insurance policies by the various insurance companies in Ghana.
Travel insurance explained
Persons traveling outside the borders of their home countries (e.g. Ghana) either for business, holidays, visits, sports tournaments, are often vulnerable to many risks before, during and after the journey. A travel insurance policy, therefore, provides cover against the risks of traveling which may include medical fees, loss of personal belongings, flight cancellation charges, third party liabilities, death, injury, etc.
Duration of cover
The duration of this policy does not usually exceed ninety (90) days, though yearly policies could be granted to regular travelers and students. It is usually provided by a local insurer in partnership with an internationally accredited one.
Scope of the standard cover
• Medical Expenses where surgical fees, hospital charges and emergency dental treatments are covered. Additionally, the cost of air-ambulance for the sick traveler, his / her close relations, friends and accompanying nurse(s), are all provided for in the cover. The policy may also cover the repatriation of policyholder's corpse or ashes in the event of death.
• Loss of luggage where there is reimbursement for loss of luggage, personal effects, missing passports, etc. The compensation here is, however, based on agreed limits.
• Travel delays usually occasioned by bad weather, or strike actions 12 hours into the original departure time.
• Personal liability arising from the insured’s legal liability for injury or accident to third parties in the course of traveling.
• Hospital Cash benefits arising from the insured being hospitalized. Daily cash payments may be applicable, but subject to agreed terms.
A Relevant scenario
Let us assume that Mr. Kay, a Ghanaian businessman, is suddenly taken ill after having an asthmatic attack whiles on a journey to Nomansland. He was hospitalised to the hospital for two (2) days. Mr. Kay did not even realise that the travel insurance policy which he was compelled by the Embassy to buy also covered hospitalisation.
When prompted, his local insurer in Ghana was called and they arranged with an internationally accredited partner to adequately cater for his health need in the foreign country. Indeed he was treated and discharged and he was very happy to learn that his travel insurance policy covered his medical expenses as well and was particularly delighted at the prompt response of the local insurer and its partner in Nomansland.
It is worthy to note that, in the unfortunate event of Mr. Kay losing his life while still in Nomansland, his local insurer in concert with the foreign partner will consequently be responsible for repatriating his corpse or ashes to Ghana.
Optional benefits
Policyholders have the option to request additional fee-based benefits, which may not be contained in the standard policy. Below are some context-specific optional benefits available to policyholders:
• Financial failure of tour organizer or guide for especially booked holidays to whom advance payments have been made.
• Lack of Amenities – poor service provision in relation to utilities such as water, electricity, broken down elevators, swimming pool facilities, at a hotel where the traveler is staying.
• Cover could also be extended to legal costs in pursuing claims for compensation and damages arising out of death or injury to the traveller.
Demand for travel insurance
Interestingly, most applicants of travel insurance often tend to be interested in only the medical benefits, usually estimated at some 30,000 EUROs, and not the others. Most of these people almost invariably forget that the loss of a passport abroad, for instance, could
