Travel insurance plans with similar price tags can offer vastly different levels of protection, according to a recent survey conducted by Hong Kong’s Consumer Council.
The consumer watchdog reviewed 27 single-trip travel insurance plans offered by 11 insurers and found that maximum benefit limits for adults could differ by as much as 100%, even among plans with nearly identical premiums. The survey, conducted between February and March, highlights the importance of scrutinizing policy details before purchasing coverage.
The investigation focused on policies for individual travelers, examining coverage for both short regional trips and longer global itineraries. Premiums for a seven-day trip within Asia ranged from HK$145 to HK$509, while those for a 14-day worldwide trip varied from HK$241 to HK$859.
Large Gaps in Medical Coverage
Among seven plans priced under HK$200 for a seven-day Asian trip, the maximum benefit for “Medical Expenses” ranged from HK$250,000 to HK$500,000 — a onefold difference. This variation was found in plans with similar pricing but differing benefit structures.
Some plans were also found to include significantly more exclusions than others. One policy, for example, excluded several key areas of protection including “Baggage and Personal Property,” “Personal Money and Travel Documents,” “Trip Delay or Interruption,” and “Rental Vehicle Excess.”
Reduced Benefits for Seniors and Children
The survey also revealed that seniors and children often received reduced benefits despite paying similar premiums to adult policyholders. Of the 27 plans reviewed, 22 (or 92%) offered lower maximum limits for medical expenses or personal accidents for travelers aged 75 and above or 17 and below. Notably, one insurer cut these limits by half across its three policy offerings for these age groups.
Limited Coverage for Kidnap and Ransom
Amid growing concerns over safety in Southeast Asia, the watchdog found that only three plans — all from a single insurance provider — included “Kidnap and Ransom” coverage. These plans offered a daily payout limit of HK$500 and capped total compensation at HK$15,000.
Watchdog Urges Caution with High-Risk Activities
The Council advised travelers to carefully examine exclusions, particularly when engaging in adventurous or high-risk activities such as skiing, scuba diving, or hot air ballooning. Coverage for such activities is not guaranteed and may result in denied claims if not explicitly included in the policy.
“Consumers must not assume all travel insurance plans offer the same protection,” the Council warned. “Careful comparison of benefits, exclusions, and terms is essential to ensure adequate coverage.”
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