Sunday, November 8, 2009
Travel insurance
@12:36 AM
Recently, I’ve been on quite a hiatus, partly because of laziness to blog.
Last week, I was doing quite a bit of research into insurance in Singapore, and it seems that Singapore travel insurance has very limited options. Almost all insurance agencies seem to offer basically the same deal without any variation even in the minute clauses, which to me suggests that competition in Singapore is almost non-existent. Moreover, the prices are sky-high, definitely not student friendly, and this is something I hope will change sooner rather than later as gap-years become the new trend.
I am searching for an insurance that will cover emergency flights, injuries and theft, valid even for coverage of adventure sports like the cycling trip. Thus far, I have been disappointed by AIG, AIA and Great Eastern in the fact that all these three “greats” offer a policy valid up to 6 months or a year,
but only for trips lasting less than 3 months. The same issue applies to HSBC and Standard Chartered insurance. Now then, what if there are people who need to take sabbaticals overseas for half a year or people who want to travel the world either in their youth (e.g. me) or in their retirement? Only travel insurance covers them and if they want a proper insurance, the next best big name is Prudential, who demands an astonishing $700 USD for a half annum insurance (Prudential’s travel insurance has recently been withdrawn, so the above figure is recalled from memory).
AIA is another intelligent agency when it comes to travel: they offer a $160 plan for half a year, but with the inevitable 3 months trip limit. To extend the trip limit, you must pay $120 for the first month, and $60 per week extension after that. So, for a 5.5 month trip like mine, it costs about $880, which is around $630 USD.
World Nomads is an Australian based travel insurance agency that provides insurance to all, regardless of country of residence, although the cost differs based on nationality. I have touched on Prudential and AIA; World Nomads offer $602 USD for 6 months with unlimited cover (expenses paid for no matter the circumstances, unless done illegally), and 100% expenses covered for hospitalisation, return trip, evacuation, emergency visit, etc. With Hostel International discount, I can lower the cost down to $542 USD, so this is around SGD $755.
Admittedly, the best option is still AIG Student Travel Assist plan, which is $360 for 6 months, but this plan demands proof of full-time enrollment in an overseas educational institution.
Finally, although World Nomads is good, but I don’t understand why the same policy costs USD602 here, but costs only USD260 for US residents, and only GBP193 for UK residents. The difference in price is absolutely ridiculous, and if you have read this far, I challenge you to deny that there is insufficient competition in Singapore, thus allowing prices to sky-rocket to such levels.
I will not be surprised if potential gap-year candidates are either put off from their plans due to the prices of insurance, or if they simply ignored purchasing insurance altogether. Either are damaging, the former being that a great opportunity is lost, and the latter being dangerous if any problems occur during the journey itself. Travel insurance companies should think above their own petty earnings (which is pretty damn substantial), and look more towards benefitting the people themselves.
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