Dubai: If there’s anything you shouldn’t forget to include in your shopping list this holiday season when you’re travelling, it is travel insurance in case of emergencies.
Holidaymakers in the UAE are putting themselves at increased risk of draining their financial resources in cases of emergency abroad by not taking adequate insurance cover for themselves, experts warned on Wednesday.
Travel insurance in the UAE is “probably among the lowest in global markets”, Phil Ashkuri, head of General Insurance at Nexus Group, said, adding residents often underestimate the importance of comprehensive travel coverage.
“As is the case with most non-mandatory coverage, travel insurance penetration in the UAE is exceptionally low. This is a trend that urgently needs to be addressed — particularly in a market like the UAE, where travel is a prominent part of our lifestyle,” Ashkuri said.
Estimates from Nexus Group, the region’s largest independent financial adviser, show that less than one per cent of customers in the UAE are covered by a comprehensive travel insurance plan. However, this figure excludes minimal coverage individuals may have opted for from a third-party, such as a bank or part of a visa application.
“Many residents rely on travel insurance that banks offer as part of a membership or credit card package, or that which is required by the Schengen visa,” explained Ashkuri. “The problem is that such policies tend to offer very limited cover, and are often not sufficient when it comes to claiming incurred losses.”
Travel insurance can be classified into two broad categories: medical expenses, such as emergency care, emergency transportation, repatriation, and cost of first aid and rescue, as well as travel inconvenience, such as trip cancellation or curtailment, delayed departure after 12 hours, delayed baggage, loss of passport, personal accident, or personal liability.
On average, worldwide term coverage, including the US and Canada, can range between Dh100 for five days to Dh550 for 92 days. Meanwhile, annual (multi-trip) coverage, which may prove more cost-efficient for frequent travellers, can range between Dh600 and Dh900, also including the US and Canada.
