Many of you had great Chinese New Year holidays travelling around and enjoying winter sports like skiing and snowboarding. If you are now planning your Easter holiday, it’s important to ensure that the travel insurance you choose provides you with adequate protection for every aspect of your trip.

Most travel insurance policies available in the market provide coverage for dangerous sports. Customers should take out a travel insurance policy which provides this type of cover if they plan to participate in dangerous sports during their trip. Customers are also advised to take note if there are conditions governing dangerous sports, such as altitude limitations for skiing and depth restrictions for diving.

While they are away enjoying their trip, many customers may overlook the protection of their homes. Leaving their homes unoccupied for long periods poses not only an increased risk of burglary, but also increased likelihood of damage due to flooding, fire, etc. Such catastrophes may not only result in customers suffering loss or damage to their own property, but also to their neighbours’ properties. Because it is often difficult to estimate the legal claims and liabilities that may arise from such occurrences, some travel insurance may not extend coverage to home contents during travel periods. Customers are therefore encouraged to take out home insurance to better protect themselves during their absence.

Generally speaking, most home insurance policies stipulate the amount of time the insured premises can be left unoccupied. Customers must therefore inform their insurance company in writing to request an extension of coverage beyond that specified in the terms. It is assumed that when accidents such as flooding or fire occur, loss is usually minimised when the home is occupied. Similarly, the risk of theft and robbery is lower when the home is occupied compared to periods when it is left vacant for long periods of time. The duration of the stipulated unoccupied allowance varies from insurer to insurer and may range from 14 to 30 days.

If customers really need to stay away from home for an extended period, they may confer with their insurance company about measures to minimise risk. For example, customers may ask friends or relatives to help check on the insured premises on a regular basis, with these friends and relatives registering at the management office every time they do so. Therefore, even in the worst case scenario when an accident does occur, customers can file a claim along with the record of their friends'/relatives' visits, to prove that the insured premises were not left empty the entire time. This supplementary information will help the insurance company determine appropriate compensation.

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iTravel Plus (Single Trip)
iTravel Plus (Annual)

Scenario:
Mr. Chan's car was damaged in a traffic accident in which a third party was held responsible for causing damage to his car. Having taken out comprehensive motor insurance with us, Mr. Chan submitted a recovery claim for the repair cost.

After that, Mr. Chan wanted to claim back the following losses arising out of the accident:

1. Deduction for depreciation 
2. One month's rental fee payable to the landlord of the carpark that Mr. Chan has rented for daily parking of his car, as a rental agreement for 12 months had been entered into between Mr. Chan and the landlord 

As the third party was totally liable for the damage to Mr. Chan's car, basically we were not liable for the claim. But as we always aim to provide meticulous services to our customers, when Mr. Chan submitted a claim for the above items to us, we nonetheless helped him to file the claim to the third party.

However, the third party rejected the claim.

Question:
Why couldn't Mr. Chan get these claims paid?

Answer:
The reason for Mr. Chan not getting the claim for deduction for depreciation paid was because it was a matter of usage consumed by the car owner, therefore the depreciation should be borne by the car owner, i.e. Mr. Chan.

Regarding the rejection of the claim of one month's carpark rental fee, as it was a fixed cost item, the said cost would have been incurred regardless of whether the car that was damaged was parked in the rented carpark or not. Therefore, the third party was not liable for such cost.

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Private Motor Car

When a riot occurs, travellers can find themselves stranded and their safety compromised. What they worry most about is their personal safety. Will travel insurance cover accidental bodily injury caused by a riot or civil unrest?

If a policy holder encounters a demonstration at the planned destination and becomes injured, the insurance company will pay the benefits, dependent on the insurance application date.

If the travel insurance was taken out before the outbreak of unrest was widely reported, MSIG will pay for the medical expenses arising from accidental bodily injury as well as the loss of personal property, money and travel documents. Additional accommodation, transportation expenditure and the unused local tour package or admission tickets to major sporting event, musical, museum or theme park incurred due to the disturbance can also be covered.

However, if the uprising had been reported at the intended travel destination on or before the date of the application of the travel insurance, thus creating a situation where a decision to cancel, shorten or delay the trip could be made, majority of the travel insurance companies will not pay the benefits for any loss or injury incurred under these circumstances.

In a situation that travellers were stranded overseas due to a riot, many insurance companies in the market would automatically extend the insurance protection period. Length of the extension period varies with each policy. MSIG's TravelSurance 6.0 and i Travel Plus (Single Trip) offer a 14-day extension.

Learn more about our insurance plans:
iTravel Plus (Single Trip)
iTravel Plus (Annual)

Scenario:
Mr. Lam's and Mr. Chan's cars collided in a car accident. It was proved that Mr. Chan was liable for the accident. Mr. Lam asked for compensation for the damage to his car from Mr. Chan's insurance company (ABC Insurance Company). However, ABC Insurance Company refused to settle the indemnity – the reason being that Mr. Chan had not paid the third party property damage excess to them.

Question:        
Does ABC Insurance Company have the right to refuse payment of the third party property damage compensation to Mr. Lam on the grounds that Mr. Chan has not settled the excess to them? 

Answer:        
The excess is simply a deduction of an agreed amount from the payment which the insurer is obliged to make to indemnify the insured. In the absence of a specific provision in the policy to the effect that payment by the assured of the excess amount is a condition precedent to the insurer's obligation to pay, insurers are not entitled to insist upon payment of the excess before they provide the indemnity.

In the above scenario, ABC Insurance Company does not have the right to decline Mr. Lam's claim unless the motor policy contains a provision which renders the payment of third party property damage excess by Mr. Chan a condition precedent to ABC Insurance Company's obligation to make compensation.

We, at MSIG, aim to provide high-quality service to our valuable customers. If you are unsure of proper rights under motor policies, please contact us. We are always there to help.

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Private Motor Car

Mrs. Lee took a newly purchased diamond necklace (worth HK$50,000) and earrings (worth HK$20,000) to her daughter’s wedding banquet in Canada last month. She had taken out travel insurance before starting her trip. Unfortunately, when she returned to the hotel after the banquet, she discovered that her earrings were missing.

When she returned to Hong Kong, Mrs. Lee filed her claim with her insurance company together with the police report issued by the Canadian police and the original purchase invoice for the earrings. After a few days, Mrs. Lee was told by her insurance company that she would only receive HK$2,000 as a result of her claim. Why was Mrs. Lee not offered the full reimbursement of HK$20,000?

In Mrs. Lee’s case, according to the coverage of her travel insurance policy, although the maximum coverage for loss of baggage was HK$20,000, the maximum coverage for any single article or pair or set of articles was HK$2,000. Therefore, as Mrs. Lee’s earrings were less than 1 year old and no depreciation was deducted, she was reimbursed only with the maximum article limit of HK$2,000.

How can customers get full cover when they travel overseas and need to take valuable items such as jewellery with them?

To protect property that is to be carried away from the home, customers are advised to extend the Worldwide All Risks section of their home contents policy by paying an additional premium, so that these items are covered irrespective of whether they are in or out of the home. With regard to precious items such as jewellery or valuable watches, customers are advised to make a list of these items and their values and to take out specified personal possessions cover, so that all items will have comprehensive coverage.

Learn more about our insurance plans:
iTravel Plus (Single Trip)
iTravel Plus (Annual)

Mr. and Mrs. Chan retired 2 years ago when they were aged 60. They went to visit their elder son in Canada for 2 months and then to the US to visit their younger son for another 2 months. Mrs. Chan hurt her leg in the US when she was out with her son. She was hospitalised and received minor surgery.

Before this, Mrs. Chan had taken out an annual travel insurance policy. When she returned to Hong Kong, she filed her insurance claim for her medical expenses, but it was rejected by her insurer. Why did Mrs. Chan's insurer reject her claim?

The insurer rejected her hospitalisation claim on the grounds that Mrs. Chan's journey exceeded the maximum period of each journey (90 days) specified in the policy. According to the terms and conditions of Mrs. Chan's annual travel insurance policy, the insurance operates only if each journey does not exceed 90 days. Although the accident happened within the first 90 days of Mrs. Chan's journey, the total duration of her journey exceeded 90 days, which is why her insurance policy was deemed inoperative.

Customers often misunderstand that their annual travel policy will only exclude protection beyond the maximum period of each journey. In fact, the policy will be regarded as not effected from the very beginning of the journey. If the number of days that customers plan to stay overseas exceeds the maximum period of each journey specified in the annual travel insurance policy, they are advised to take out a single travel insurance policy as the maximum period specified will be longer than that of an annual travel insurance policy.

Learn more about our insurance plans:
iTravel Plus (Single Trip)
iTravel Plus (Annual)

Staying outdoors with summer temperatures rising could result in heatstroke. For travellers needing medical attention overseas, their medical expenses will be covered by travel insurance with the maximum cover ranging from tens of thousands to up to HK$1m. Travellers often get hurt in crowded places and, in addition to needing medical treatment overseas, they may also need follow-up treatment when they return to Hong Kong. In cases like this, the cost of their follow-up treatment will also be covered by travel insurance up to several tens of thousands of Hong Kong Dollars. Bonesetters' fees can vary from several hundred Hong Kong Dollars to several thousand Hong Kong Dollars in total.

If a traveller gets seriously injured and needs to be hospitalised, their insurance company will arrange a deposit guarantee to facilitate hospital admission. Their insurance company will also bear the hospitalisation charges to a maximum of HK$1m, depending on the policy. If a traveller needs to be admitted to hospital overseas, they should immediately call the emergency hotline provided by their insurance company. In addition to keeping the hotline number to hand, it is also important to have your personal information and policy numbers with you. This is vital if you are unfortunate enough to end up in a coma as your friends or medical staff can help to contact your insurance company.

While you are planning your itinerary and arranging accommodation for your trip, remember that it is just as important to take out adequate travel insurance to ensure a safe and happy visit!

Learn more about our insurance plans:
iTravel Plus (Single Trip)
iTravel Plus (Annual)

Mr. Law travelled to Frankfurt for two weeks. When he collected his luggage at the airport after he returned to Hong Kong, one of his bags was damaged. He immediately reported the damage to the airline company and requested compensation. The airline company admitted their negligence and compensated him HK$400, which was half of the original value of the luggage bought 3 years ago.

Mr. Law was unsatisfied because the airline company refused to compensate the original value of his luggage. He then filed a claim with his travel insurance company together with damage confirmation from the airline company.

After assessment, Mr. Law's travel insurance company paid HK$200 to him after deduction for depreciation and in consideration of the compensation already paid by the airline company. Mr. Law was not satisfied with this outcome and insisted that the compensation should be for the original value of his luggage.

Why was Mr. Law unable to claim the original value of his luggage from his travel insurance company?

As Mr. Law had already received HK$400 compensation from the airline company, his actual loss was only HK$400. Since Mr. Law's luggage was bought 3 years ago, his travel insurance company took depreciation into account when calculating the compensation. Therefore, Mr. Law was compensated HK$200 by his travel insurance company.

Some customers may assume insurance companies will compensate the original value of a damaged item. They should take note that travel insurance will compensate the market price of the item only when the item was bought less than a year before the claim. Betterment will also be deducted if an upgraded model of the damaged item was bought as a replacement.

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iTravel Plus (Single Trip)
iTravel Plus (Annual)

Scenario:
Mrs. Sea was the director of ABC Company. ABC Company takes out a third party insurance on its car with a motor insurer. One day, Mrs. Sea drove the car carelessly, resulting in a traffic accident. She was seriously injured.

Question:        
Can she successfully claim under “Third Party Bodily Injury” cover from ABC Company’s motor insurer?

Answer:        
Our view is Mrs. Sea's claim cannot succeed simply because she, being the insured driver at the material time, did not belong to the type of persons intended to be covered by the compulsory legislation. This has been held in the decided UK case of Cooper v Motor Insurers' Bureau, 1985. We summarise brief details of the case as below:

"K asked the Plaintiff to road test K's motorcycle. Plaintiff was injured due to defective brakes. He obtained Judgement against K for negligence. K was uninsured. Plaintiff then brought action against Motor Insurers' Bureau for damages.

In the Judgement, it was held that the third party risks cover as required under Road Traffic Act 1972 s145(3) & s143(1) excludes the actual driver and the Bureau won the case."

In order to have better protection, customers should:

• Take out medical insurance which provides broader coverage on hospitalisation expenses.
• Take out personal accident insurance which provides a lump sum payment for accidental death and permanent disablement.
• Most importantly, drive carefully.

Learn more about our insurance plans:
Private Motor Car