Even though you might expect medical assistance to be ranked number one, IIZI’s statistics on the settlement of damage notices indicates that nearly 50% of insurance claims in the last three months have been related to travel disruptions. “Strikes and work stoppages have become quite commonplace in the airline sector, causing flight delays and groundings,” says Pille Plees, Product Development Manager for IIZI’s personal and property insurance, adding that this phenomenon is causing a chain reaction: “If your flight from Tallinn is delayed, you risk missing a connecting flight, which in turn may entail extra costs on things like accommodation or new tickets,” says Plees, drawing attention to the fact that travel disruption insurance would help cover such costs.”
And then there are also illnesses that pass from person to person, causing people to fall ill both before and during the trip. Plees underlines that falling ill before a trip is also covered by travel disruption and gives a personal example. “I was due to visit Italy with friends in September, but came down with a fever just a few days before the trip. My situation did not improve by the following morning and I decided to take a COVID-19 test just in case, which turned out positive and I had to cancel the trip,” admits the insurance specialist. “My friends were in perfect health, so they all went ahead with the trip, but the insurance covered my plane tickets and the part of the accommodation and rental car cost that I did not use”, says Plees. This allowed others to avoid extra costs for the rental car and accommodation, and Plees was fully indemnified for the cost of the travel package.
Another incident occurred in the spring of this year, when a client opted for a lower level of cover despite IIZI’s recommendations and IIZI was ultimately unable to indemnify the losses incurred. “The client was prudent and purchased travel insurance well in advance (about a month before the trip), but did not follow the ‘IIZI recommendation’ and instead went for the option that was cheaper at the time,” says Plees, explaining that the coverage chosen by the client was about €20 cheaper. “The trip started off fine, but moments before the return flight it turned out that the air carrier was going on strike on the day of the flight, meaning that the client had to rush to buy new return tickets. Unfortunately, insurance will only indemnify the costs incurred due to a strike if additional travel disruption coverage is included. In this case, IIZI recommended that the client buy the coverage, but the client declined to do so,” says Plees, adding that in the end the client was forced to pay for a new €300 return ticket out of pocket.
Clients wait until the last minute to take out insurance or opt for the cheapest option
According to Plees, lengthy policy terms and conditions and the fact that they vary widely from one insurance company to another make travel insurance difficult to comprehend. “Sometimes it seems that if there it nothing else to go by, people will choose the cheaper option” says the specialist. “Sadly, that initial saving of a few dozen euros can prove to be very costly if you happen to be in a situation that is not covered by the cheaper insurance.”
Timing is another important factor when buying travel insurance. “Admittedly, we can see that people are more aware of the benefits of travel insurance, but about 25% of people only start to think seriously about travel insurance a week before their trip,” says the insurance specialist. “If insurance is taken out only days before the trip, potential cancellation reasons may have already occurred, in which case the cancellation is no longer unexpected and the insurance does not cover the costs of the cancelled trip,” says Plees, noting that illness and strikes again serve as examples in this case.
One travel insurance to cover common risks
By law, an insurance broker is the client’s representative, meaning that the client’s wellbeing is of primary importance. Travel insurance is nuanced and one of the most complex insurance products, so it is up to the broker to make sure the client understands the details of the insurance. “Travel insurance comes with a multitude of terms and conditions, and it is easy to get confused. IIZI has insight into the most common damages and losses and related insurance needs, based on which we put together an optimal insurance package for the client that always comes with the ‘PERSONAL RECOMMENDATION’ tag,” says Plees who further highlights that in this case, there is no need to worry about whether the insurance will be enough to cover you or your family member in case of illness, strikes or other concerns. According to the specialist, insurance is not an additional cost, but a natural part of a travel package and should be part of proper travel hygiene.
Between March and May, a total of 95 notices of damages were filed through IIZI’s system for the settlement of damage notices. Of these, 45% are for travel disruption damage, 30% luggage damage, 18% medical assistance and 7% other causes.
