You get what you pay for

We were recently asked to review one of the large Banks Travel Insurance coverage for Corporate  credit card holders.  Whilst the insurance is presented as a value add, we very quickly came to the opinion that the insurance protection purported to be offered wasn’t all it promised to be.

Of the many examples we highlighted over and again we were reminded of the key principle – ‘you get what you pay for’, with insurance having very little to do with price and all about the protection it offers.

A key example is how can a meaningful travel insurance cover have a clause saying:

“it will not pay a claim if you fail to heed a travel advice warning from “any broadcast by any member of the mass media”.   

With the current decentralised media landscape, I don’t see how in practice anyone can possibly comply with this provision. Typically a good travel insurance policy will seek to limit this exclusion to the Evacuation section only, and only on the basis that the recognised authority – The Department of Foreign Affairs and Trade (DFAT) (not the media) have issued the travel warning.

There is also no coverage for items “forgotten or misplaced”, which is an obvious risk for travellers and a key component of what should be an expected level of protection. A reasonable travel cover would include such losses as long as the loss can be proven to have occurred on the trip, and you should expect that the travel insurance emergency assistance will help you with lost or stolen items.

Be careful of relying on ‘Complimentary Travel Cover’ and make sure you understand the limits and exclusions.  Remember – you get what you pay for.