Step 2: How much protection do we need?
In the 2nd step, we need to look at how much protection do we need for those three things that we worry the most?
1. Flight delays more than six hours
Insurance companies offer a fixed amount after a set number of hours of flight delay. For example, Tokio Marine gives RM 200, if your flight is delayed for six hours. If the flight is delayed for another 6 hours, so in total 12 hours, then you get another RM 200. This continues for every 6 hours until a maximum amount of RM 3,600. This is 4 and a half days worth of flight delay. Now, flights usually are not delayed for days, so we do not care much about the maximum payout. It is just too unlikely that it will happen. What we will be looking at is the amount that is paid after the first 6 hours, because this is most likely to happen.
Etiqa is unique among the insurance companies because it pays RM 100 already after a flight delay of 2 hours. A 2-hour delay can happen quite often, especially during international flights.
Selection Criteria: When we look at the amount, we want the highest possible. The higher the amount, the better.
2. Luggage is delayed or lost
Here, we take the same approach as a flight delay. Instead of looking at how much the maximum payout is for delay or lost luggage, we look at the amount that is paid out after 6 hours of flight delay. Tune Insurance, for example, pays RM 200 for every 6 hours your luggage is delayed up to an amount of RM 1,000. To get RM 1,000 your luggage needs to be delayed for 30 hours.
Selection Criteria: We prefer the insurance company that pays the most out after 6 hours. The higher the amount, the better.
3. You get sick during your vacation
The most significant difference between insurance companies is medical expenses. To recap, Berjaya has the lowest amount of RM 100,000, and AIG has the highest of RM 1,000,000. The more we need, the more we pay for the Travel Insurance. This is why AIG is also the most expensive travel insurance. Here again, to find the Best Insurance for you, you need to decide for yourself, what medical expense amount makes sense. We are no experts for medical expenses in other countries, so we take the best approach possible, which is to go with the most popular amount. RM 300,000 is the coverage that most travel insurance providers, so we believe it is a safe choice to say that the insurance we want must provide at least RM 300,000. It can have more, but it should not have less than RM 300,000 in protection against medical expenses during the vacation.
Selection Criteria: The medical expenses coverage must be RM 300,000 or higher.
View Comments
Travel insurance company offer in Malaysia does not cover up for hospitalization/outpatient when we fell sick at overseas. Do take note of it! Pls, Read n Read the terms & conditions again n again first. It covers for accident only. We should ask our gov what goes wrong. lol
Dear all, In recent news we heard that there are insurance company impose customer pay first and claim later rather than insurance company take care all. Any suggestion?
It can be good and bad. Usually, plans, where the customer pays first, are cheaper.
Really? Surely must have insurance Co that covers medical expenses overseas
I will say, cashless hospitalization/outpatient during travel time is the best travel insurance to buy.
we agree. cashless payment is an important feature for travel insurance to provide. We will update our report and add cashless payment as a comparison feature.
This is a great overview. Another consideration: Do you want to buy from an insurance company in your home country of in the country you are traveling to. I would suggest it is better to buy coverage in your home country and then you can deal with any claims locally after your trip has ended. There may be situations where this is not true - but worth considering.