Keep travel insurance details safely archived

Insurance is the last thing many people think of and care for when they are alive, but those who do organise their insurance contracts meticulously and keep their family informed about the coverage, leave behind a happy family in the unfortunate event of an untimely death.

Recently, the surviving wife of an acquaintance, who died in a plane crash, got richer by more than $2 million because her late husband had properly maintained a file of all his insurance contracts, though he had actually paid premium for a single life policy of $250,000 only. How did he then manage to leave behind so much of 'free insurance' for the benefit of his family?

Well, what happened was this: The life policy that he had purchased had a double indemnity provision if the assured died in an air crash. So she got $500,000 from the Life Insurance Company. The flight ticket was purchased through his credit card, which triggered a claim of $500,000, as the card provided for free personal accident benefit of $250,000 and double benefit in the event of a plane crash. In addition he had three credit cards, each of which provided for a free personal accident insurance worth $100,000 valid 24 hours throughout the world.

He was also an annual subscriber to one of the leading local news papers which had a free life insurance worth $150,000 attached to it, with an extra $150,000 built in if the subscriber died in a plane crash, which entitled him for a total benefit of $300,000. Also his company had a generous employee benefit program in the form of a group life insurance policy with the capital sum assured fixed at 36 months gross salary. His entitlement was worth $540,000.

On top of all the above, our departed friend was also eligible for a massive compensation from the airlines. Fortunately for the surviving family, all the insurance benefits he was entitled for, were properly communicated to the family which helped in expeditious settlements of claims.

Keep family informed

More often than not, people do not take the free 'value added' insurance programs seriously and rarely make it a point to archive the needed documents safely. One such free insurance that people do not take seriously, is the travel accident policy wrapped around a credit card, when the flight ticket is purchased through it. Most of the credit cards issued by the banks do carry a free travel accident insurance, as part of their benefit package. And invariably you will find emergency medical insurance up to $1 million as one of the major benefits covered in the insurance.

As the busy summer travel season is fast approaching, it would be better for the potential travellers to be ready with their plans and beneficial for them to pack their travel accident insurance certificate with other essential materials. And always remember to keep your family or accompanying partner informed about the relevant contact numbers as they would be the ones required to get in touch with the insurance company or the TPA, in the unfortunate event of an emergency.

The writer is Deputy General Manager with Al Rajhi Company for Cooperative Insurance, Riyadh. The views expressed herein are his own and not necessarily subscribed to by his employers.