What is travel insurance?

You have paid for the flights and accommodation. As you are about to complete the booking, you are offered travel insurance. With the holiday already costing more than you planned, it is tempting to skip another expense or rely on the cheapest cover.

Before you choose, think about the unexpected and what it could cost you. What if you had to cancel your trip, missed a connection or had to return home unexpectedly? What if an accident or illness resulted in expensive medical treatment or even an emergency evacuation? Consider what you could comfortably afford to pay yourself and where travel insurance could help protect you financially.

Travel insurance can help protect you from these unexpected costs, but the level of cover will depend on the policy you choose. Take time to understand what is covered, the benefit limits that apply, any exclusions or excesses, and what costs you may still need to pay yourself.

What does travel insurance cover?

Travel insurance can cover unexpected costs before or during a trip, including emergency medical treatment, cancellations, delays and lost or stolen baggage.

Emergency treatment, even if it is not life-threatening and does not require hospitalisation, may qualify. A broken arm, for example, may be covered, even if you are treated and discharged the same day. Activities such as skiing may, however, require additional cover. Always check the policy’s limits and exclusions.

Each benefit is subject to specific conditions and a maximum benefit limit. An excess, which is the amount you may need to contribute towards certain claims, may also apply.

Travel insurance policies may exclude or limit cover for certain pre-existing medical conditions, high-risk activities such as mountaineering at high altitude, or events linked to war or civil unrest. Some sporting, adventure or work-related activities may also require additional or specialised cover.

Does travel insurance cover medical treatment away from home?

Falling ill or getting injured overseas can be expensive, particularly when medical bills are in dollars, euros or pounds. A hospital stay, emergency surgery or medical evacuation could run into millions of rands.

Your South African medical scheme may provide some international emergency cover, but this is not guaranteed. Depending on your plan, it may cover emergency treatment only, with no travel related benefits like cancellation or luggage cover, impose rand-based limits or exclude certain expenses for costs related to a pre-existing illness. You may also have to pay upfront and claim once you are back in South Africa.

A comprehensive travel insurance can help cover shortfalls. Before travelling, check what your medical scheme covers abroad, whether you need to obtain confirmation of cover before departure and establish exactly what is covered and what is excluded.

Save your insurer’s 24-hour emergency assistance number. This service is often outsourced to a specialist provider that arranges treatment and evacuation. Check whether prior authorisation is required to avoid problems with your claim.

If you have a medical condition, take regular medication or are awaiting test results, ask the insurer what you need to disclose and how it affects your cover. An important exclusion on travel policies is travelling with the intention of obtaining medical treatment abroad or elective surgery. An important condition is that you must be fit and healthy to travel.

Does travel insurance cover cancellation, delays and lost belongings?

Travel insurance generally covers cancellation only when you are unable to travel because of a specific event covered by your policy. Simply changing your mind, deciding not to travel, or cancelling because work commitments have changed would not normally be covered. If you become unexpectedly and seriously ill or injured before departure and are medically unable to travel, your policy may cover non-refundable costs such as flights or accommodation.

Insurers typically require supporting documents, including medical certificates, death certificates, booking confirmations and proof of non-refundable expenses.

How does travel insurance pay claims? Consider the following case: you paid R18 000 for flights and accommodation but had to cancel for a covered reason. Your travel providers refund R6 000, leaving R12 000 in non-refundable costs. If your policy has a R10 000 cancellation limit and a R1 000 excess, you may still have to pay part of the loss yourself. If the reason for cancelling is excluded, the remaining R12 000 may not be covered at all. The takeaway: Travel insurance does not necessarily reimburse your full financial loss. Check the benefit limits, excesses, conditions and exclusions before you buy. Remember this example is just to show you why the benefit limit and exclusions matter. It is not a typical policy benefit.

If you change your mind or cancel because of work commitments your cancellation costs generally won’t be covered. If you are seriously ill before departure your cancellation costs may be covered, but a minor illness may not be covered.

Sometimes the unexpected means you cannot travel when planned, need to come home sooner, or have to stay away longer than expected. Depending on the reason and your policy, postponement, curtailment (cutting a journey short) or journey extension benefits may help cover eligible costs. Choosing comprehensive travel insurance gives you broader protection for these types of disruptions, but always check what events are covered, the applicable limits and any exclusions or conditions.

Check what the airline, accommodation provider or tour operator will refund if you cancel. Then look at the terms of your policy to see what costs you can recover under the policy.

If your suitcase arrives late, baggage delay cover may help pay for essentials while you wait. If it is lost or stolen, baggage cover may contribute to replacing its contents. Check the single item limit: Your baggage benefit may have an overall cover limit, but there may also be a lower limit for each individual item. This is particularly important when travelling with expensive items such as laptops, cameras, jewellery or other electronics, as their value may exceed the amount payable for a single item.

Travel delay or missed connection cover may pay for extra meals, accommodation or transport after a specified delay, usually caused by severe weather or airline disruptions. Keep proof of the delay and receipts for additional costs.

Keep written confirmation from the travel provider and receipts for what you spend.

Do you already have cover for travel mishaps?

Some bank cards offer travel insurance, but cover may be limited by exclusions, age restrictions and benefit limits. Your medical scheme or household insurance may provide additional protection, but gaps can remain. Compare standalone policies from insurers, brokers or travel providers before relying on complimentary cover.

Ask for the policy document setting out the cover, limits, exclusions and conditions. Check how it is activated, when it starts, how long it lasts and who qualifies. A partner or child travelling with you may not automatically have the same cover. Also check whether the benefits include cancellation and baggage, or mainly emergency medical expenses.

Compare what you already have with the cost and plans for your trip. You may need additional cover, but you should know what gap you are trying to fill.

Why could your travel claim be declined?

A genuine loss does not always meet a policy’s conditions. Before departure, pay particular attention to:

• Medical disclosures: Although it isn’t common, if your insurer asks about relevant health conditions, medication and tests you are awaiting, disclose them.
• Activities and destinations: Check cover before skiing, diving, going on a cruise or hiring a scooter.
• Exclusions: Pay close attention to medical exclusions, the conditions and limits that apply to luggage cover, and exclusions relating to war, conflict or civil unrest. Understanding what is not covered is just as important as knowing what is.
• Evidence and deadlines: Find out what you must report, to whom, and how quickly.

If something happens, contact the insurer promptly. Keep medical records, receipts, airline notices and written reports of theft or lost baggage. These help establish both what happened and what you paid.

What to check before you leave

Not all travel insurance policies suit every traveller or trip. Age restrictions may apply and standard policies often limit how long you can stay abroad. Working overseas, particularly in manual jobs, may require specialist cover. Some countries also require proof of medical insurance when applying for a visa. Before leaving, check these conditions and ask for the full policy document.

The most reliable source for these answers is your own policy schedule and full policy wording. Ask the insurer or card benefit provider for them rather than relying on a short product description. Reading both is also the National Financial Ombud Scheme’s advice to consumers trying to understand which claims their insurer will settle.

Travel insurance cannot prevent an illness, cancellation or lost bag. It can help with the financial consequences. Before you leave, work out what a provider would refund, what your policy could pay and what would still come from your pocket. 

This article was written by Thekiso Anthony Lefifi and reviewed by Jason Veitch, Head of Travel, Accident and Health at Santam Travel Insurance and Karen Botha, Head of Sales and Marketing at Santam.