Navigating the world of insurance can feel like traversing a jungle of confusing terms, which often leads to problems. But let us break things down for you through this simple guide explaining some of the common terms used in flight insurance policies. Make sure to read and understand these terms before you embark on your next adventure.
Deductible
This is the amount you pay out of pocket before the insurance kicks in. Imagine it as a “mini-budget” for covered expenses. For example, if your overseas travel insurance has an RM200 deductible and you get sick with an RM500 medical bill, you’d pay the initial RM200 and the insurance would cover the remaining RM300.
Pre-existing conditions
These are medical conditions you may already have before purchasing insurance. Some policies don’t cover pre-existing conditions, so be sure to disclose any relevant medical history when buying travel insurance.
Exclusions
These are situations or events specifically not covered by your policy. They might include extreme sports, pre-existing conditions (unless covered by specific endorsements), natural disasters, or participation in illegal activities. Read the exclusions carefully to understand what isn’t covered.
Co-Pay
Like a deductible, this is a fixed amount you pay for specific covered services, like a doctor’s visit. Think of it as a “ticket price” to access certain benefits. For instance, you might have an RM50 copay for every doctor’s visit during your trip. Typically this is required instead of a deductible or coinsurance and requires you to pay a set fee for a specific visit.
Baggage
Baggage refers to the personal belongings and possessions that passengers bring with them when they travel. These items are typically packed in suitcases, bags, or other containers and are transported in the cargo hold of an aeroplane or other modes of transportation.
Trip curtailment
Trip curtailment refers to the act of cutting short or ending a planned trip before its originally scheduled completion. This could happen for various reasons, such as unexpected personal emergencies, health issues, family emergencies, or other unforeseen circumstances that require an individual to return home or abandon their travel plans earlier than anticipated.
Flight misconnection
A flight misconnection occurs when a traveller is unable to catch a connecting flight as part of their itinerary due to delays or other issues with their preceding flight, such as mechanical issues, weather conditions, health issues or airline schedule changes.
Overbooked flight
An overbooked flight occurs when an airline sells more tickets for a specific flight than there are available seats on the aircraft. Airlines overbook flights based on historical data and statistical models, anticipating that some passengers will not show up. This practice helps airlines maximize their revenue by compensating for the expected number of no-shows.
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