Ombudsman Warns of Restrictive Travel Insurance Policies

August 17 - Many travelers are thrilled to find that their credit card company or the airline company offers free travel insurance.

However, the ombudsman for short term insurance in South Africa has warned travelers not to rely too much on the cover provided by these free travel insurance policies, calling them restrictive and limited.

These insurance policies are usually given as an incentive to travelers to purchase a ticket through a particular airline company or to use a certain credit card when abroad, however the ombudsman said that they may be of little practical benefit to the traveler who suddenly has a real need for good insurance cover.

As such, it is extremely important to check the product and whether it meets all the traveler's requirements before any journey is embarked upon.

The majority of travel insurance policies will provide for minimum cover in terms of lost baggage, curtailment of travel arrangements, medical treatment and so forth.

However, many of these free travel insurance policies are severely restricted and will only pay out under certain circumstances that may not always suit the needs of the traveler.

The ombudsman said that consumers should purchase additional cover to provide themselves and their property with maximum protection against unexpected expenses.

"Consumers are encouraged to read their policy documents prior to departure and to familiarize themselves with the cover given as the procedure for the making of a claim in the event of misfortune, noted the ombudsman for short term insurance in South Africa, Brian Martin.