
While booking your flight tickets, you may have noticed the option to add travel insurance to your flight booking. Out of convenience, you may purchase travel insurance together with your flight tickets. However, should you really purchase your travel insurance from airlines? In this article, we highlight 5 things to consider when deciding whether to purchase your travel insurance directly from insurers or through airlines.
(See "With My Corporate Cover, Do I Still Need Health Insurance?")
#1 Trip cancellation
Did you know that the most common travel insurance claim is for trip cancellations?1 With 40 per cent of claims a result of cancellations, ample coverage ensures that your holiday will not be ruined by any unforeseen events.
FWD Travel Insurance Business |
Singapore Airlines |
Scoot |
Jetstar |
AirAsia |
|
Coverage for trip cancellation |
Up to $10,000 |
Up to $5,000 |
Up to $800 |
Up to price of original flight ticket |
Up to $600 for flight and hotel only |
Coverage for trip cancellation due to insolvency |
Yes |
No |
No |
Yes, limitations apply |
No |
Note: With FWD travel insurance as our top choice in "Best Travel Insurance Singapore", we compare the travel insurance offered by airlines against it. Coverage shown is applicable for those under the age of 70 unless otherwise stated.
At first glance, all travel insurance includes coverage in the event of a trip cancellation. However, taking a closer look at the policy conditions, it reveals that the definition for coverage differs between policies. For example, only FWD and Jetstar's travel insurance covers for a trip cancellation due to insolvency. Singapore airlines, Scoot and AirAsia's travel insurance only covers for cancellation due to serious illness or injury, witness summons, civil strife, natural disaster, civil unrest or mechanical breakdown of flight. Therefore, should your flight or trip get cancelled due to the financial collapse of your travel agent, you will not be able to claim from Singapore airlines, Scoot and AirAsia’s travel insurance.
Additionally, do note that while Jetstar covers for trip cancellation due to insolvency, this benefit is only applicable if your air ticket, accommodation and/or car rental is booked with the same agent. This shows that travel insurance from airlines are typically stricter, with more limitations as compared to those offered by insurers (e.g. FWD travel insurance).
(See "The Ultimate Travel Insurance Guide (2019 Edition)")
#2 Travel delay
While some may misinterpret travel delay to include all public transport delays, this is not always the case with most travel insurance from airlines only covering for flight delays. This means that a delay for your bus, train or ferry ride(s) will not be covered under Singapore Airlines, Jetstar and AirAsia's travel insurance.
FWD Travel Insurance Business |
Singapore Airlines |
Scoot |
Jetstar |
AirAsia |
|
Coverage for flight delays |
Yes |
Yes |
Yes |
Yes |
Yes |
Coverage for other public transport delays |
Yes |
No |
Yes |
No |
No |
Note: With FWD travel insurance as our top choice in "Best Travel Insurance Singapore", we compare the travel insurance offered by airlines against it. Coverage shown is applicable for those under the age of 70 unless otherwise stated.
Although Scoot's travel insurance includes travel delay for public transport, this is limited to a delay resulting from a strike, riot or civil commotion, adverse weather conditions, airspace restriction or closure and/or grounding of public transport due to mechanical or structural defect. This means that if your delay was due to an overbooked public transport, Scoot's travel insurance will not provide coverage.
However, for travel insurance from insurers, this usually includes delays for all public transport as long as you are not the cause of the delay. FWD travel insurance will also cover for delays due to an overbooked public transport.
(See "All About Term Insurance 2019")
#3 Personal accident
FWD Travel Insurance Business |
Singapore Airlines |
Scoot |
Jetstar |
AirAsia |
|
Personal accident coverage |
Up to $300,000 |
Up to $100,000 |
Up to $100,000 |
Up to $35,000 |
Up to $125,000 |
Note: With FWD travel insurance as our top choice in "Best Travel Insurance Singapore", we compare the travel insurance offered by airlines against it. Coverage shown is applicable for those under the age of 70 unless otherwise stated.
While no one would wish to have to make a claim for personal accident, ample coverage will provide a peace of mind with knowledge that you are sufficiently covered while on your trip. For personal accident coverage, insurers tend to offer higher coverage levels with FWD travel insurance business providing up to $300,000 coverage.
(See "Best Car Insurance Singapore")
#4 Medical expenses
Travel insurance purchased from insurers usually provides a higher medical expenses coverage with FWD travel insurance business plan covering for up to $500,000.
FWD Travel Insurance Business |
Singapore Airlines |
Scoot |
Jetstar |
AirAsia |
|
Medical expenses incurred overseas |
Up to $500,000 |
Up to $250,000 |
Up to $50,000 |
Up to $20,000 |
Up to $10,000 (insured has to pay first $50 for each and every medical claim) |
Post-trip medical expenses in Singapore |
Up to $15,000. Treatment by physician or chiropractor up to $500, with a limit of $50 per visit |
Up to $10,000 (excludes coverage for physician treatment unless you are a Krisflyer member) |
Only applicable for follow up treatment |
Up to $5,000 |
Only applicable for follow up treatment |
Note: With FWD travel insurance as our top choice in "Best Travel Insurance Singapore", we compare the travel insurance offered by airlines against it. Coverage shown is applicable for those under the age of 70 unless otherwise stated.
Additionally, travel insurance from airlines have greater limitations on the post-trip medical expenses in Singapore with Scoot and AirAsia only covering for follow up treatment in Singapore. Physician costs may also be excluded from the scope of coverage from airline travel insurance.
(See "3 Reasons You Need Cancer Insurance")
#5 Travel misconnection
Did you know that if you miss your scheduled public transport as a result of the delay of your first incoming public transport, this will not classify as a travel delay? Instead, this will be classified under "travel misconnection" when you file for a claim.
FWD Travel Insurance Business |
Singapore Airlines |
Scoot |
Jetstar |
AirAsia |
|
Coverage for travel misconnection |
Yes, $100 for every 6 hours stranded, up to $500 |
No |
Yes, $100 for every 6 hours stranded, up to $600 |
No |
Yes, $100 for every 6 hours stranded, up to $200 |
Note: With FWD travel insurance as our top choice in "Best Travel Insurance Singapore", we compare the travel insurance offered by airlines against it. Coverage shown is applicable for those under the age of 70 unless otherwise stated.
If you were to take multiple modes of public transport (e.g. plane, bus, ferry, train) on your holiday, then you may want to take a closer look at the travel misconnection benefit in your policy. This is because while most insurers cover for travel misconnection, this is not necessarily the case for travel insurance from airlines.
(See "3 Things Your 20 Years Old Policy May Not Tell You")
So should you buy travel insurance from airlines?
With travel insurance from insurers able to provide a wider scope of coverage and higher limits, we think that the tradeoff of coverage for convenience is not a worthy one. Moreover, while purchasing through airlines may be convenient, it is also not always the cheapest option. Therefore, we recommend purchasing travel insurance from an insurer.
(See "Best Travel Insurance For Families 2019")
Ongoing travel insurance promotions (Updated 16 March 2020)
FWD Travel Insurance |
Sompo TravelJoy |
|
Ongoing promotions* |
11% off single and annual plans with promo code "IFAST". Valid till 20 March 2020.
|
40% off single trip and 20% off annual plans. Valid till 31 March 2020. |
Information is accurate as of 16 March 2020 with changes subjected to the insurer’s discretion.
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1Source: https://blog.world-first.co.uk/8333/what-are-the-most-common-travel-insurance-claims
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