65% Malaysian Traveller dont buy Travel Insurance

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Many people do not consider purchasing travel insurance as they believe nothing unfortunate will happen to them.

A number of Malaysian travelers also feel that travel insurance is insignificant compared to destination arrivals, accommodation and transportation when travelling abroad.

Tune Protect chief executive officer Razman Hafidz Abu Zarim said an online survey conducted by their group last year showed that eight out of ten Malaysians understand the significance of travel insurance.

However, only 34.8 per cent of them would actually purchase it, especially for long-distance travelling and high-risk destinations, he said.

“They understand the importance of the insurance. However, only a few actually purchase it. This is due to people having the perception that nothing will go wrong,” said Razman.

He said many do not realise the benefits of having a travel insurance, which will come into effect from the moment the air tickets are purchased until the person arrives home.

“When someone goes on a holiday abroad and, due to medical circumstances, needs to be brought back home, the travel insurance provides protection in this matter.

“In fact, some comprehensive insurance packages also provide compensation in cases of hijacking.

“As for the insurance payment, the minimum amount is as low as RM14 for domestic travels and RM35 for international trips,” he said.

Razman said for the amount paid, an individual can receive up to RM300,000 for medical expenses, RM300,000 for death or permanent disability and RM1.5 million for emergency evacuations.

“This protection can reduce the burden of an individual during unforeseen circumstances,” he said, adding that travel insurance can be purchased online through any insurance agencies or when booking air tickets.

Razman said low cost-carrier AirAsia has already taken proactive steps by introducing bulk travel insurance for its travel packages to provide guaranteed protection for its customers.

“Some industry players realise its importance and the way forward. Some factors which affect the consideration of travelers to buy a travel insurance is epidemics, natural calamities, politic instability and terrorist attacks,” he said.

Source: NST